Chery’s newest brand, Lepas, has yet to reach Australian showrooms but is already outlining plans to challenge established names like Toyota and Mazda in the small hatchback space, a category few Chinese makers have entered.

Lepas is scheduled to arrive locally later this year with two battery-powered SUVs aimed at families, starting with the mid-size L6 followed by the compact L4.

In an exclusive interview with CarExpert set for release tomorrow, Chery Motor Australia chief operating officer Lucas Harris confirmed that Lepas will add a small hatchback by the end of next year. The unnamed model will compete directly with the Toyota Corolla, Mazda 3 and Kia K4.

This segment has long been led by Japanese and Korean brands and ranked as Australia’s top-selling category for years after the 2008 financial crisis.

Over the past decade demand for small passenger cars has fallen sharply, with the segment’s market share hitting a record low of 4.7 per cent last month.

Only a few Chinese brands have ventured into the small electric car space recently, including the MG 4, BYD Dolphin and GAC Aion UT.

They will soon be joined by the Leapmotor B05, while the smaller Geely EX2 will face the BYD Atto 1 in the light-car segment.

The GWM Ora electric hatch has been rebadged as the Ora 5 electric SUV, and Nissan’s original Leaf hatch is no longer offered, with its SUV successor currently unavailable in Australia.

Mr Harris believes the upcoming Lepas hatch, offered with both fully electric and plug-in hybrid options, will stand out from the crowd.

“I was at the factory a few weeks ago and saw the early pre-production model, and was really excited,” he told CarExpert. “I think it's a really good, really attractive, sporty-looking little car that can answer a lot of questions in the market at the moment.”

Although details remain limited, Mr Harris noted that Lepas will differentiate itself across the range with vibrant colours, bold styling and refined interiors.

“I don't want to say that all SUVs are boring, but they are a bit bland,” he said. “There are very few options out there that are a bit interesting or a bit exciting or a bit different. And, in fairness to the market, how many different ways can you draw a medium-sized SUV, right?

“That's where I think we can try and stretch the envelope with Lepas a little bit; by making the design more interesting and talking about the brand and having the brand show up in a way that is more colourful and more vibrant.

“We know that's not going to potentially be everyone's cup of tea, and that's by design. We have other brands to satisfy people that are looking for something more conservative. This is trying to capture a sort of part of the market which is in a bit of a white space and talk to people that aren't really being spoken to by anyone.”

Learn more about Lepas’ Australian strategy in the full interview tomorrow.

MORE: Explore the Lepas showroom