Chery Australia is taking steps to introduce sedan models in a market increasingly dominated by SUVs. As traditional sedans from brands such as Mazda and Volkswagen decline in sales and availability, Chery seeks to fill the gap with new offerings. This initiative comes amid a significant shift in consumer preferences towards SUVs and utes.
Sedans built by Japanese, Korean, and European manufacturers have largely diminished in Australia, with models like the Mazda 6, Volkswagen Passat, and Volvo S60 being discontinued. In contrast, Chinese manufacturers are stepping in to maintain sedan options. MG has made strides with the MG 5 and is set to introduce the MG 7, while BYD offers the Seal and is contemplating additional sedan models.
Chery Australia’s Chief Operating Officer, Lucas Harris, shared insights with CarExpert, suggesting that the dwindling sedan segment could be linked to fewer available options. “I wonder if part of the reason that segment has been shrinking is because the competitors are leaving,” he remarked. The primary remaining competitor in the sedan market is the Toyota Camry, which leads sales with 4,259 units delivered in 2025, followed by the Tesla Model 3 at 3,715 and the BYD Seal with 1,609 units.
The overall medium passenger car segment has seen only around 53,000 sales in the first half of 2025. In stark contrast, mid-size SUVs have achieved over 149,000 sales during the same period. Chery’s current lineup consists solely of SUVs, including its newly established Omoda Jaecoo brand.
Exploring New Opportunities in Sedans
Harris expressed strong advocacy for introducing sedans to the Australian market. “We have them globally, but left-hand drive, so I think if we can do a really good job with what we are [currently] given in right-hand drive, then maybe our friends in R&D could consider giving us a sedan in right-hand drive,” he stated.
Chery has a variety of sedan models available in left-hand drive markets, including options equipped with petrol, plug-in hybrid, and battery-electric powertrains. Chery’s Chief Engineer, David Xianqiang Lu, confirmed the company’s focus on SUVs but acknowledged the potential for sedan models in Australia. “We all see the trend in sedans dropping and SUVs increasing,” Lu noted, indicating that research is underway to assess the viability of introducing sedans to the Australian market.
“We are definitely in the research phase, studying the potential, doing the business analysis to see if it’s worthy to do that [in Australia],” he added.
Looking Ahead: Expanding Offerings
Chery is not only contemplating sedans but is also working on expanding its vehicle categories in Australia. The company plans to introduce ute models, with the first expected to arrive in the second half of 2026. This expansion reflects Chery’s strategy to tap into the growing right-hand drive market while responding to changing consumer demands.
As the automotive landscape evolves, Chery Australia’s efforts may help reinvigorate the sedan segment, even as SUVs continue to dominate sales figures. By introducing a broader range of vehicles, Chery aims to establish a stronger presence in the competitive Australian market.
In conclusion, while the future of sedans appears uncertain, Chery’s commitment to diversifying its offerings could provide new options for Australian consumers who still value this traditional vehicle type. With ongoing market analysis and research, the brand is positioning itself to adapt to the evolving preferences of Australian drivers.
