Australia’s small SUV battlefield has become increasingly fierce, with Chinese manufacturers leading the charge in what’s becoming the most competitive automotive segment Down Under. Among the new contenders making serious waves is the Chery Omoda 5, a stylish compact SUV that’s grabbing headlines with pricing that starts from just $27,990 drive-away.
The budget SUV war has intensified dramatically over the past two years. What once seemed impossible – buying a brand-new SUV for under $30,000 – has become reality thanks to aggressive Chinese manufacturers who’ve flooded the Australian market with value-packed offerings.
The New Budget Champion Emerges
Chery’s return to Australia after nearly a decade has been nothing short of remarkable. The Omoda 5 spearheads this comeback with a proposition that’s hard to ignore: genuine SUV capabilities at city car prices. The entry-level FX variant at $27,990 drive-away positions itself as one of the cheapest new vehicles available in Australia today.
This pricing strategy represents a seismic shift in automotive retail. Previously, buyers seeking affordable transport were limited to basic sedans or aging hatchbacks. Now they can access a fully-featured SUV with modern technology, comprehensive safety systems, and impressive warranty coverage.
What You Actually Get for Your Money
The Omoda 5 FX doesn’t feel like a stripped-down budget offering. Standard equipment includes 18-inch alloy wheels, LED headlights with automatic high beam, dual-zone climate control, and wireless phone charging. The cabin features a 10.25-inch touchscreen with smartphone integration and a matching digital instrument cluster.
More expensive variants like the EX model ($35,490 drive-away) add premium touches including a panoramic sunroof, heated front seats, 360-degree camera system, and power tailgate. These features typically cost thousands extra in European or Japanese competitors.
Engine and Performance Credentials
Under the hood, most Omoda 5 variants utilize a 1.5-liter turbocharged four-cylinder engine producing 108kW of power and 210Nm of torque. This powertrain pairs with a CVT automatic transmission driving the front wheels, delivering respectable performance for urban duties.
Fuel consumption sits at a claimed 6.9 liters per 100km, which aligns well with similarly-sized competitors. The engine meets Euro 6 emissions standards and provides adequate punch for highway merging and city driving scenarios.
The Chinese Competition Heats Up
The small SUV segment has become dominated by Chinese manufacturers who’ve mastered the art of delivering maximum value at minimum prices. Key competitors include the MG ZS (starting around $30,990), GWM Haval Jolion ($32,990), and Chery’s own Tiggo 4 Pro ($29,990).
This Chinese triumvirate has essentially created a new market tier below traditional Japanese and European offerings. They’ve forced established brands to reconsider their pricing strategies and feature specifications to remain competitive.
Market Share Battle
Recent sales figures show Chinese brands are gaining significant traction in Australia. Chery recorded 12,603 sales in 2024, representing an impressive 114% increase over the previous year. This growth trajectory suggests Australian buyers are increasingly comfortable with Chinese automotive technology and build quality.
The broader small SUV category sold over 237,000 units in 2024, making it one of the fastest-growing automotive segments. Chinese manufacturers now account for a substantial portion of these sales, indicating a fundamental shift in consumer preferences.
Technology and Safety Focus
Modern buyers expect comprehensive technology regardless of price point, and the Omoda 5 delivers admirably. The dual-screen setup creates an upmarket ambiance that rivals premium German competitors costing twice as much.
Standard safety equipment includes autonomous emergency braking, lane departure warning, adaptive cruise control, and blind spot monitoring. The comprehensive five-star ANCAP safety rating provides peace of mind for family buyers who prioritize protection.
Driver Assistance Reality Check
Early Omoda 5 models suffered from poorly calibrated driver assistance systems that proved intrusive and annoying in real-world conditions. The lane-keeping assist was particularly problematic, jerking the steering wheel unnecessarily and creating an unpleasant driving experience.
Chery has since recalibrated these systems for Australian conditions, though some reviewers note they’re still not as refined as those found in established European or Japanese competitors. The improvements show the manufacturer’s commitment to continuous development and customer feedback integration.
Build Quality Evolution
Initial Omoda 5 examples suffered from inconsistent build quality that raised concerns about long-term durability. Panel gaps, interior trim alignment, and material quality varied between individual vehicles, creating uncertainty for potential buyers.
Recent production appears to have addressed many of these concerns. Chery has implemented stricter quality control measures and improved manufacturing processes to ensure greater consistency across the production line.
Warranty and Service Support
Chery backs the Omoda 5 with an impressive seven-year unlimited kilometer warranty, along with seven years of capped-price servicing and roadside assistance. Service intervals occur every 12 months or 10,000km, with capped pricing averaging just $295 per visit over seven services.
This comprehensive coverage demonstrates manufacturer confidence in product reliability while providing buyers with significant peace of mind. The service network continues expanding across Australia, with representation in every capital city.
Electric Evolution – The Omoda E5
Chery’s commitment to electrification materialized with the Omoda E5, an all-electric variant priced from $42,990. This battery-powered version utilizes a 61.1kWh lithium-ion phosphate battery driving a single electric motor producing 150kW and 340Nm.
The E5 offers 430km of WLTP range, positioning it competitively against established electric SUVs like the BYD Atto 3 and MG ZS EV. Charging capability includes 80kW DC fast charging and up to 9.9kW AC charging with three-phase power.
Electric Market Positioning
The Omoda E5 enters Australia’s rapidly expanding affordable EV segment, where Chinese manufacturers are driving prices down while features and range increase. This electric SUV provides families with a realistic alternative to traditional combustion engines without the premium pricing historically associated with electric vehicles.
Chery’s electric offering demonstrates the brand’s commitment to future mobility solutions while maintaining the value proposition that’s made its combustion models successful in the Australian market.
Driving Dynamics and Real-World Performance
Behind the wheel, the Omoda 5 delivers a driving experience that prioritizes comfort over sportiness. The suspension tuning favors ride quality, though some reviewers note a floaty feeling at highway speeds that lacks the planted feel of European competitors.
Steering is light and easy to manage in urban environments, though it lacks the communication and precision that driving enthusiasts prefer. For the target market of practical family buyers, these characteristics are often preferable to overly firm or sporty setups.
Urban Capability
City driving represents the Omoda 5’s strongest suit. The compact dimensions make parking manageable while the elevated seating position provides excellent visibility in traffic. The quiet cabin and smooth CVT transmission create a relaxed driving environment well-suited to daily commuting.
Highway performance proves adequate though unremarkable. The 1.5-liter turbo engine provides sufficient power for merging and overtaking, though it lacks the refinement and responsiveness of naturally aspirated alternatives from Japanese manufacturers.
The Competitive Landscape
Australia’s small SUV market has become incredibly crowded, with over 41 different models currently available. The sub-$35,000 segment is almost exclusively dominated by Chinese manufacturers who’ve created an entirely new value tier.
Traditional players like Toyota, Mazda, and Hyundai find themselves competing on different terms, emphasizing brand heritage, dealer networks, and long-term reliability rather than pure value for money.
Future Market Trends
Industry experts predict the budget SUV segment will continue expanding as Chinese manufacturers introduce new models and existing players reduce prices to remain competitive. This trend benefits consumers who gain access to advanced technology and comprehensive features at historically low prices.
Electrification will play an increasingly important role, with affordable electric SUVs likely to accelerate adoption among price-conscious buyers who previously considered EVs financially out of reach.
The Bottom Line Assessment
The Chery Omoda 5 represents a compelling value proposition that’s difficult to ignore in today’s market. Starting at $27,990 drive-away, it offers genuine SUV practicality, modern technology, and comprehensive safety equipment at prices that seemed impossible just a few years ago.
While it may not match the refinement and polish of established European or Japanese competitors, the Omoda 5 provides everything most buyers actually need at a price point that makes SUV ownership accessible to a broader audience.
The seven-year warranty coverage addresses reliability concerns while the expanding service network ensures ongoing support. For buyers prioritizing maximum value over brand prestige, the Omoda 5 presents a rational choice that’s reshaping Australia’s automotive landscape.
This Chinese SUV invasion shows no signs of slowing, and the Omoda 5 stands as a prime example of how aggressive pricing and generous equipment levels are forcing the entire industry to reconsider what represents good value in the modern automotive market. The budget SUV war is far from over, and Australian consumers are the clear winners.