Chery is Developing Fast Towards an International Brand
Jun 21, 2011
In May, Chery exported 14,110 cars, up by 75.21% over the previous month, making a new record in its monthly performance in the past 3 years. It is the third month that Chery has exported more than 10,000 cars, ranking No. 1 among all its Chinese counterparts in the overseas market.
Such performance has proven that Chery is beginning to harvest from the great efforts it has invested in the overseas markets over the past dozen years. Chery is developing fast towards an international brand.
Chery first entered the international market in 2001 when the Syrian auto dealer SAMIR came to Chery and purchased 10 Chery cars. Since then, the Chinese auto maker has started its legendary international practice.
In August 2003, Chery had its first CKD project in Iran and sold 1,200 cars to the Iranian market that year, making it the largest Chinese car exporter for the year. The leading position of Chery in the overseas market has been maintained till today.
In October 2004, Chery sold its cars to Egypt. Within 5 years, the Chinese auto maker built 4 welding lines in its DME plant in Egypt which is able to assemble 35,000 cars per year. In 2010 alone, Chery sold 18,000 cars in Egypt, contributing to 7.5% of the market share in the country. In addition, 45% of the parts and components are manufactured locally in Egypt.
In December 2005, Chery established its first overseas subsidiary in Russia. Up to date, Chery has become one of the most popular auto brands in Russia. And many Chery car owner clubs have been set up, such as Tiggo club, A1 club, A3 club, etc. These clubs and their activities have been quite eye-catching in Russia.
In March 2006, Chery exports its first 2,100 engines to US, followed by the Chery presence in EU and other overseas markets having high standards. Today, Chery cars have been seen on the streets of Serbia and other EU countries, making very good performance.
By May 2007, Chery had sold 100,000 cars in the overseas markets.
In September 2008, the 8th Chery overseas plant went into operation in Malaysia.
In July 2009, Chery landed in the Brazilian market, achieving greater-than-expected sales. To meet the rising demand for Chery cars in Brazil, Chery has decided to build its 9th overseas plant in the country in 2010. The plant is located in the Chery Industrial Park in Jacarei of Sao Paulo. 400 million US dollars will be invested in the Chery’s Jacarei plant, which covers 1 million square meters. The phase I plant is able to assemble 50,000 cars a year. When the phase II construction is completed, the annual capacity will reach 150,000 cars.
In 2010, Chery Tiggo, because of its fashionable design and outstanding cost-effectiveness, was awarded with the Best SUV Model in Brazil for 2009, together with Hilux SW4 of Toyota, Forester of Subaru and TR4 of Mitsubishi. The awarding appraisal was organized by the most auto magazine AUTO ESPORTE.
In 2011, the Frontier Consulting of Indonesia, Sheng Yi magazine and Marketing magazine collaborated to conduct the consumer survey, which included almost all the auto brands in the market of Indonesia. The survey outcomes excelled QQ model of Chery, which won the title of Best Chinese Brand for 2010.
In April 2011, Chery became the first Chinese auto maker selling 500,000 cars in the overseas markets.
In just 10 years’ time, Chery has sold its cars to over 80 countries and regions in Asia, Europe, Africa, South America and North America, taking up 50% shares of the exported Chinese cars.
The success of Chery in the overseas markets is attributed to the strategy of “making an internationally-renowned brand” when it made the first overseas step. By making a clear roadmap, Chery has been making its global layout gradually. Chery has also worked hard to make the master plan for its international efforts, including the adoptive model R&D, sales & service system, branding, technical export and the building of its overseas plants.
By fully integrating its global R&D resources, Chery has established the standard R&D platform over the world. At the same time, Chery is also developing and manufacturing the products adaptive to the laws and regulations in different target markets by pursuing the highest international standards and adopting the local R&D techniques. For instance, Chery QQ entered the Indonesian market in the form of CKD in 2006. Before that, Chery had made the adaptive design and R&D to make QQ compatible with the 88# gasoline and the right-hand driving rules in the country. More importantly, the Chery QQ specifically developed for the Indonesian market also experienced the long-term adaption and compatibility tests and numerous improvements. To cater to the high-temperature and desert environment in Egypt, Chery made adaptive R&D to improve its cars’ ability to sustain in the sandy and erosive environment.
Besides, Chery has established a vast and robust global marketing service network. Up to today, Chery has built 12 plants in Russia, Ukraine, Iran, Egypt, Malaysia, Indonesia and Uruguay. Another 4 plants are under construction or planned to be built. The marketing service network, built by nearly 1,000 dealers, covers over 80 countries and regions in the world, synchronizing the marketing and after-sale service and ensuring the express and quality after-sale service for the Chery car owners in the world. Meanwhile, Chery has also established the International Training Center for the After-sale Service to enlarge its technical service team, speed up the export of technical service, improve the maintenance skills of its overseas dealers and ensure the overseas consumers can have access to the most considerate and detail-oriented service. Today, the capacity of Chery in offering the overseas after-sale service is also in the leading position among its Chinese counterparts.
The capable R&D system and the perfect marketing service network of Chery have obtained great trust and support from its overseas consumers, making Chery’s products more popular and accepted as the leading Chinese auto brand in the overseas markets.
The Egyptian retailer said he became the Chery agent about 7 or 8 years before. In the beginning, he just imported the Chery cars from China and found the cars were sold well. Since Chery has set up its plant in Egypt, the sales cost is reducing greatly. Besides, Chery has brought its technologies and created many job opportunities for the local people. The Chinese brands such as Chery have given the Egyptian people very good impression.
The Russian dealer also said, “Chery is the most popular Chinese auto brand in our country because it lives in our daily life on the streets. Chery has made a big success and enjoys positive fame in Russia.”
10 years has passed and Chery has driven onto the fast track towards an international brand. With facts and figures, Chery has proved that the Chinese auto brand has the capacity to grow into an international one. With technical breakthrough and quality improvement, Chery is now realizing its strategic goal of becoming an international brand.