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From Knockoff to Tech Leader: The Transformation of the Automaker That Produces Brazil’s Best-Selling Hybrids

Written by Bruno Teles
Published on 09/06/2025 at 15:46
De "Xing-Ling" a líder em tecnologia: a incrível transformação da Caoa Chery, a montadora dos híbridos mais vendidos do Brasil
De “Xing-Ling” a líder em tecnologia: a incrível transformação da Caoa Chery, a montadora dos híbridos mais vendidos do Brasil
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How Caoa Chery Overcame Initial Doubt and Became a Reference Automaker in SUVs and Hybrid Technology, Challenging Traditional Brands in the Brazilian Market.

The trajectory of Chery in Brazil is a case study on resilience and reinvention. Initially associated with the pejorative nickname “Xing-Ling”, which denoted low-quality Chinese products, the Chinese automaker faced a tough battle to win over Brazilian consumers. Today, the scenario is different.

Caoa Chery, the result of a strategic partnership with the Brazilian group Caoa, not only reversed its image but also became a key player in the market. This article analyzes the journey of this automaker, from its troubled arrival to technological leadership in the hybrid segment.

The First Steps of Chery in Brazil: The Shadow of “Xing-Ling” and Initial Challenges

The initial entry of Chery into Brazil was marked by challenges. Models like the Chery QQ and the Cielo arrived with the promise of being affordable and well-equipped. Although praised for their price, they quickly faced criticism regarding the durability of components such as suspension, finish, and paint.

This perception of low quality, combined with insufficient after-sales service and difficulty finding parts, solidified the negative image of “Xing-Ling”. Even with the inauguration of a factory in Jacareí (SP) in 2014, demand remained low, signaling that mere national production would not be enough to reverse the situation.

The Strategic Alliance with the Caoa Group and the New National Automaker

The trajectory of Chery in Brazil is a case study on resilience and reinvention. Initially associated with the pejorative nickname "Xing-Ling", which denoted low-quality Chinese products, the Chinese automaker faced a tough battle to win over Brazilian consumers. Today, the scenario is different.

The turning point occurred in November 2017. The Caoa Group acquired 50% of Chery’s operations in Brazil, creating Caoa Chery. The new company was announced as “a new 100% national automaker”, a strategic move to dissociate the brand from the purely Chinese stigma.

The “Caoa factor” was decisive. The expertise of the Brazilian group, its successful history with Hyundai, and its extensive dealer network brought the necessary credibility. The new management abandoned entry-level cars and focused on the SUV segment, with an aggressive cost-benefit proposal: to offer more technology and equipment at competitive prices.

The Rise of the Tiggo Line and the Bet on Hybrid Technology

The transformation of Caoa Chery materialized in its products. The Tiggo SUV line (Tiggo 5x, Tiggo 7, and Tiggo 8) emerged as the flagship, with modern design, better finish, and a technological leap. Large digital screens, 360º cameras, and a good equipment package became standard.

The automaker also positioned itself at the forefront of electrification with its DHT (Dedicated Hybrid Transmission) technology. Models like the Tiggo 8 Pro Plug-in Hybrid, with 317 hp, and the Tiggo 7 Pro Hybrid stood out in the growing electrified market, consolidating Caoa Chery’s image as a technology leader.

Experts’ Opinion

The trajectory of Chery in Brazil is a case study on resilience and reinvention. Initially associated with the pejorative nickname "Xing-Ling", which denoted low-quality Chinese products, the Chinese automaker faced a tough battle to win over Brazilian consumers. Today, the scenario is different.

Experts and market analysts recognize the remarkable transformation of Caoa Chery. The brand has managed to reverse the image of “xing-ling” to that of a technological and innovative automaker. The sales success, with the company ranking in the top 10 of best-selling brands and the Tiggo 7 Sport becoming a market phenomenon, proves this change.

However, after-sales service remains a point of concern. Despite customer service awards, consumer perception is still mixed. Reports of delays in repairs and difficulties with parts persist. The “Regular” rating on the Reclame Aqui website, according to experts, indicates that consistency and effectiveness of after-sales service across the network are crucial challenges for the automaker to solidify consumer trust.

The Future of Caoa Chery

The success of Caoa Chery has helped pave the way for other Chinese brands. The arrival of competitors like BYD and GWM, with strong financial backing and a focus on electrification, has intensified competition.

To remain relevant, the automaker has adopted strategies such as price reductions and a continuous bet on plug-in hybrids, which fit well with the Brazilian infrastructure. An investment of R$ 3 billion over the next five years, focused on modernization and the development of new products, signals the company’s confidence in its trajectory. The big challenge will be to maintain growth and consolidate customer trust in an increasingly competitive market.

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Bruno Teles

Falo sobre tecnologia, inovação, petróleo e gás. Atualizo diariamente sobre oportunidades no mercado brasileiro. Com mais de 7.000 artigos publicados nos sites CPG, Naval Porto Estaleiro, Mineração Brasil e Obras Construção Civil. Sugestão de pauta? Manda no brunotelesredator@gmail.com

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