Chery Forms Japan Joint Venture with Autobacs – First EV to Deliver in 2027

On May 11, Chery Automobile and Japan's automotive giant Autobacs Seven officially announced the establishment of an international joint venture. Through its Yokohama-based development and sales subsidiary EMT (Electric Mobility Technology), the partners plan to launch a new electric vehicle brand, with the first model scheduled for delivery in Japan in 2027. The joint venture is headquartered in Singapore and brings together a coalition of six Chinese and Japanese companies, including Jiangsu Yueda Auto Group (manufacturing), Gotion High-Tech (battery) and Anest Iwata (paint technology).

Autobacs Provides the Distribution Backbone

The most strategically valuable partner in the deal is Autobacs Seven, Japan's largest automotive and service chain, with over 1,200 stores nationwide. The retailer has gradually expanded into new vehicle sales, having already worked with BYD and Hyundai in Japan. For this project, Autobacs will deploy its store network to create several hundred integrated sales and service bases in the first year alone, bypassing the steep cost and time barriers of building a dealer network from scratch. BYD, by comparison, has taken nearly three years to establish just 70 sales outlets in Japan – a clear illustration of the challenge.

Localised Product and Team

Products will leverage Chery's proven EV technology and support advanced driving assistance, with software calibration tailored to Japan's urban driving environment. The EMT team includes engineers from Honda and Mazda, while the chief marketing officer is a former Nissan China executive. The brand is positioned as a "Japan-originated" marque, effectively sidestepping the "China brand" label.

Product Roadmap and Production

EMT plans to introduce four EV models in Japan between 2027 and 2029. Initial production will take place at Yueda Auto's plant in China, but local production in Japan is under consideration for 2030 or later, which would also help the brand qualify for full Japanese EV subsidies.

Chery's Global Traction

In 2025, Chery sold 2.806 million vehicles globally, ranking 12th among all automakers and marking its 23rd consecutive year as China's top passenger vehicle exporter. In April 2026, the group exported 177,600 units in a single month – a 102.4% year-on-year surge and 70.6% of its total monthly sales.

Outlook for Hong Kong

For Hong Kong observers, the joint venture represents a significant test of whether a Chinese automaker can succeed in one of the world's most insular automotive markets through local branding and full supply chain cooperation. However, the EMT brand is currently focused entirely on Japan, with no right-hand-drive export plans or Hong Kong timeline announced.