Chery’s Jaecoo J7 is Malaysia’s best-selling non-national SUV for the month of October 2024, according to JPJ’s vehicle registration figures. A total of 1,579 units of the Jaecoo J7 were registered last month, overtaking the Honda HR-V (1,550 units) and the Toyota Corolla Cross (1,140 units).

Sales of the ever-popular Honda HR-V (priced from RM 115,900) increased by 2.4% compared to the previous month, but growth was capped by a lack of supply of the e:HEV RS hybrid variant (priced from RM 141,900), which is sold out until January 2025.

Honda Malaysia has previously shared that the e:HEV RS hybrid variant accounts for around 21% of total HR-V sales in the country. It is the brand’s most popular hybrid model here. Supply of Honda hybrid models is not a lot. We understand that this is due to the nature of Malaysia's 'customized' incentives for locally assembled cars, which for some companies, especially those producing hybrids, involve a cap on the total excise tax rebate given.

Toyota Corolla Cross, especially the hybrid variant, is also sold out a bit too early. Checks with several dealers reveal that most exhausted their inventory of the Corolla Cross by mid-October - one month earlier than planned - while a new facelift model will only be launched in December.

A Toyota dealer explained in October, “Since the announcement of RON 95 subsidy rationalization, there has been a sharp increase in interest for hybrids. Every day, I am getting calls from customers asking for them. The hybrid variant is already sold out. Our last unit is a 1.8V petrol. For the next 1.5 months, we don’t have any more Corolla Cross units to sell (until December).”

The Toyota Corolla Cross Hybrid, last priced at RM 143,000, is Malaysia’s best-selling hybrid model. The run-out campaign for the outgoing model included an RM 8,000 discount, with some dealers offering up to RM 10,000 in total savings.

The Jaecoo J7 was launched in Malaysia in July 2024. This five-seater C-segment SUV is priced from RM 138,800. It shares the same T1X platform as the Chery Omoda 5 and Tiggo 7 Pro.

Unlike the 1.5-litre turbocharged Omoda 5, the Jaecoo is powered by a larger, 1.6-litre turbocharged 4-cylinder engine that makes 197 PS / 290 Nm), paired to a 7-speed dual-clutch automatic transmission (available in FWD or AWD). This drivetrain is shared with the Chery Tiggo 7 Pro.

The Jaecoo J7 is locally assembled at Chery’s plant in Shah Alam. Its sister-cars, the Omoda 5 and Tiggo 7 Pro, are contract manufactured at Inokom’s plant in Kulim.

Non-national segment leader Honda HR-V is technically a B-segment SUV that sits one segment below the Jaecoo J7 and the Corolla Cross. However, due to the segment-straddling nature of today’s SUVs, the HR-V’s cavernous cabin space, and its similar price bracket, consumers often group the HR-V in the same shopping basket as C-segment SUVs like the Jaecoo J7, Toyota Corolla Cross, and Proton X70.

Speaking of the Proton X70, a new facelift model was launched in August 2024, which doubled September’s sales to 1,465 units (up from 703 units in August). However, the updated X70 struggled to maintain momentum, cooling to 989 units in October.

The Chery Omoda 5 (priced from RM 99,800), which briefly overtook the Toyota Corolla Cross in February 2024 (1,318 units), has been affected by a widely publicized region-wide quality issue. It sold just 295 units in October, marking the fourth consecutive month this year that the Omoda 5 failed to breach the 300-units-per-month barrier.

JPJ’s figures don’t separate the 5-seater Chery Tiggo 7 Pro (priced from RM 123,800) from the 7-seater Tiggo 8 Pro (priced from RM 159,800), but total Tiggo series sales for October were just 435 units.

In terms of cumulative figures, the Honda HR-V remains the segment leader by a wide margin, with 16,664 units sold from January to October 2024. The Toyota Corolla Cross follows with 11,987 units.

Including lower excise tax national-marque models, the Perodua Ativa remains Malaysia’s most popular SUV in 2024, with 30,355 units sold (2,959 units in October alone).

The Proton X50 (priced from RM 86,300) follows with 18,513 units (2,025 units in October), while the Proton X70 (priced from RM 98,800) trails with 6,241 units—selling fewer than even the far more expensive Honda CR-V’s 9,628 units (priced from RM 159,900).

The rapid rise of the Jaecoo J7 is remarkable, but so was Geely’s Proton X70 in the early 2020s, and the Chery Omoda 5 last year. Despite a strong start, neither Chinese models has sufficient staying power. The ability to maintain sales momentum will determine whether the Jaecoo J7 becomes a long-term contender in Malaysia or merely a flash in the pan, one-hit wonder.

Chery has a rather confusing multi-brand sales channel and it's left to be seen how will Malaysians react to this China-style arrangement. The Omoda 5 is currently sold by Chery dealers, but the upcoming Omoda C9 will be sold by Jaecoo dealers, marketed as 'C9 by Jaecoo.' There will be no Omoda-branded dealers.

Next year, another Chery brand, Jetour, will be launched in Malaysia, selling similar SUVs that overlap with Tiggo's, Omoda's, and Jaecoo's target markets.

Jetour is a brand under Chery's domestic business division, while Omoda and Jaecoo (grouped under O&J) are export brands of the Chery International business unit. Previously, O&J was supposed to speadhead Chery's global expansion, but with the Chinese car market slowing, Jetour will now also be going overseas, competing with the parent company's namesake Chery cars as well as O&J SUVs.

Regardless, Jaecoo (and Chery) is a brand that established Japanese marques cannot afford to ignore.

Honda Malaysia must address legitimate concerns regarding the recent drop in quality of its parts, while UMW Toyota Motor should not take customer loyalty for granted - particularly given concerns over the quality of locally fitted accessories like low-resolution infotainment systems and dashcams.

Beyond the Japanese marques, the Jaecoo J7 must also address competition from GWM’s Haval H6, which is also off to a strong start, with over 1,500 bookings collected in its first month of sales.

Launched on October 9, the H6’s delivery figures are not yet reflected here, but consumer sentiment towards GWM's hybrid powertrain - which Jaecoo has yet to offer in Malaysia (but a higher price J7 PHEV is in the plan) - is positive.

As Toyota and Honda dealers have noted, hybrids are the powertrain of choice for many consumers, and the Haval H6 is well-positioned to capitalize on this growing demand.