Chery Automobile and Japanese automotive giant AUTOBACS have formed a joint venture to produce and sell pure electric vehicles in Japan. Headquartered in Singapore with Chery holding 26.91%, this marks another Chinese OEM entering the world's fourth-largest auto market through localized partnership after BYD. BYD sold 4,536 NEVs in Japan in 2025, while Zeekr and GAC Aion also plan summer 2026 entry.
JV Layout: Singapore HQ, Tripartite Shareholding
In May 2026, Chery's joint venture plan with Japan's AUTOBACS Seven emerged. According to public disclosures:
JV Name: EMT (headquartered in Singapore)
Equity Structure: Chery 26.91%, Jiangsu Yueda 26.91%, AUTOBACS Seven 17.94%
Business Scope: Overseas production and sales of pure electric vehicles
Cooperation Model: Chery provides products and technology; AUTOBACS contributes channel resources
AUTOBACS responded to media inquiries stating it has invested in Singapore-based EMT but has not made any specific decisions regarding Chery selling China-made EVs in Japan.
Japanese Market: The Electrification Gap in the World's Fourth-Largest Market
Japan is the world's fourth-largest auto market at roughly 4 million annual units, but domestic OEMs dominate absolutely. Recently, Chinese OEMs have attempted to crack this market through EVs:
Brand | Entry Time | Progress |
|---|---|---|
BYD | 2022 | Sold 4,536 NEVs in Japan in 2025; developed micro-EV specifically for Japan |
Zeekr | October 2025 | Zeekr 009 pre-orders opened; expected summer 2026 delivery |
GAC Aion | Summer 2026 | Plans to begin Japanese market sales |
Chery | 2026 (expected) | JV in progress; models TBD |
Japanese market particularities:
Extremely high consumer loyalty: Toyota, Honda, Nissan hold over 90%本土 share
Relatively lagging charging infrastructure: Public charger density below China and Europe
Unique Kei-Car culture: ~40% of sales; special size preferences
Why JV Rather Than Direct Operation
Chery's choice of a Japanese JV rather than BYD's direct-sales approach reflects different market strategies:
Channel leverage: AUTOBACS has extensive automotive aftermarket channel networks in Japan
Brand trust: Japanese consumers trust local partners more than foreign direct brands
Regulatory adaptation: Japan's import vehicle certification and compliance requirements are complex; local partners lower barriers
This model provides reference for other Chinese OEMs: in highly closed markets with strong本土 brands, JV cooperation may prove more efficient than direct operation.
Indirect Impact on Central Asian and Russian Markets
Chery's Japan market layout carries indirect reference value for Central Asian and Russian buyers:
Technology endorsement: Chinese models capable of entering Japan typically meet higher product standards and quality controls
Globalized product definition: New models developed for Japan (compact BEVs, right-hand-drive) may adapt to other right-hand-drive markets
Brand premium elevation: Presence in the Japanese market helps elevate Chinese brand recognition and trust globally
Models Chery supplies to Russia and Central Asia through export channels like EX1000.COM share core platforms and technologies with Japan-market products. Success in Japan will reinforce overseas buyers' confidence in Chinese brands.
