Chinese automaker Chery to launch EV brand with Japan's Autobacs Seven

TL;DR

Chery, a Chinese automaker ranked 12th globally, will partner with Japan’s Autobacs Seven to sell EVs in Japan beginning in 2027. This marks a significant step for both companies into Japan’s EV market.

Chinese automaker Chery and Japanese auto parts retailer Autobacs Seven will jointly introduce a new electric vehicle brand to Japan in 2027, marking a significant cross-border collaboration in the EV sector.

Chery, ranked 12th globally in new vehicle sales in 2025, will partner with Autobacs Seven, which operates approximately 1,200 stores worldwide, to sell EVs in Japan. The partnership aims to tap into Japan’s growing electric vehicle market, which has been attracting increased attention from international automakers and suppliers. The details of the specific models, branding, and sales strategy are still under development, but both companies have confirmed their joint venture will be operational by 2027.

This initiative reflects China’s broader push into international EV markets and Japan’s openness to foreign entrants in the automotive sector. Chery’s move into Japan is part of its global expansion plans, while Autobacs seeks to diversify its business beyond automotive accessories and used cars, aligning with Japan’s national goals to promote electric mobility and reduce emissions.

Why It Matters

This collaboration is significant because it signals increased competition in Japan’s EV market, which has traditionally been dominated by domestic automakers like Toyota and Nissan. For Chery, entering Japan represents a strategic step to expand its global footprint amid fierce competition in China and other markets. Autobacs’ involvement indicates a shift towards integrating EV sales into its existing retail operations, potentially transforming the Japanese auto parts and accessories retail landscape. For consumers, this could mean more EV options and increased market competition, possibly accelerating EV adoption in Japan.

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Background

Japan has been cautious in adopting EVs compared to other markets, but recent government policies and consumer interest have spurred growth. International automakers, including Tesla and Volkswagen, have already entered or announced plans to enter Japan’s EV market. Chery, a major Chinese automaker, has seen rapid growth globally and ranked 12th in global new vehicle sales in 2025. Autobacs Seven, a leading Japanese auto parts retailer, has been expanding its services, and this partnership marks a strategic move into vehicle sales, particularly EVs, in Japan.

“We see great potential in Japan’s EV market and are excited to collaborate with Autobacs Seven to bring our vehicles to Japanese consumers.”

— A spokesperson for Chery

“Partnering with Chery allows us to diversify our offerings and better serve the growing demand for electric vehicles in Japan.”

— An executive at Autobacs Seven

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What Remains Unclear

Details about the specific models, branding, pricing, and sales channels remain unclear. It is also uncertain how the partnership will navigate Japan’s regulatory environment, consumer preferences, and competition from established automakers. Additionally, the timeline for product launch and market entry could be subject to delays or strategic adjustments.

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What’s Next

Both companies are expected to finalize their joint venture agreements, develop their EV lineup, and begin marketing efforts ahead of the 2027 launch. Monitoring developments in regulatory approvals, product announcements, and retail strategies will provide further insight into how this partnership unfolds.

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Key Questions

What types of EVs will Chery and Autobacs sell in Japan?

Specific models and vehicle types have not yet been disclosed. Details are expected to be announced closer to the launch date in 2027.

Will this partnership include local manufacturing or import of vehicles?

It is currently unclear whether the vehicles will be locally manufactured in Japan or imported from China. Details remain under development.

How will this affect existing Japanese automakers?

This move introduces new competition into Japan’s EV market, potentially impacting market share for domestic automakers. The extent of this impact will depend on pricing, model offerings, and consumer reception.

Are there plans for other collaborations between Chinese and Japanese companies in automotive sectors?

While this partnership is notable, further collaborations may emerge as both countries seek to expand EV and automotive technology cooperation, but specific plans have not been announced.

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