PH-spec Jaecoo J7 and J8 to be sourced from Indonesia

We recently posted that Jaecoo, as well as its Omoda sister brand, will finally be launching locally at the upcoming 2024 Manila International Auto Show (MIAS). With that, the brands have been holding mini online meetings with select local motoring media, us included.

This gave us the opportunity to ask Omoda and Jaecoo (O&J) Philippines Country Head Marco Chen for an estimated price range for the Jaecoo J7 and J8 crossovers once they launch in our market, considering that they are powered by 1.6- and 2.0-liter engines, respectively.

READ: Omoda and Jaecoo finally have a confirmed launch date in PH

For those who don’t know yet, vehicles imported from China with engine displacements of less than 1500 cc (1.5L) benefit from tax breaks thanks to the ASEAN-China Free Trade Agreement (ACFTA). For the said vehicles, only a 5% import duty is imposed. For those with engines larger than 1500 cc, there will be a 30% import duty which in turn will make prices much higher.

Luckily for Jaecoo Philippines, they’ve found a way to circumvent these import duties and that’s by not sourcing from their home market. Instead, the J7 and J8 will be sourced from Indonesia where Chery International, O&J’s parent company, currently has a manufacturing plant. This move also allows them to enjoy zero tariffs when importing to the Philippines thanks to the ASEAN Free Trade Agreement.

Sourcing local units from Indonesia will also make pricing more competitive compared to rivals. An example used is that the J8 midsize crossover will be competing segment-wise with models such as the Ford Explorer and Hyundai Palisade which both cost above Php 3-million, but price-wise will be similar to a mid-grade Toyota Fortuner 2.4 Q which is priced just a little over Php 2-million.

That’s gonna be a first for a Chinese car brand in the Philippines, but also a smart move. Do you think it will help the brand once they launch?

_{PHOTOS FROM JAECOO.}