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Shanghai 2017

Chery Automobile Co., Ltd. Profile

Incorporated on January 8, 1997, Chery Automobile Co., Ltd. is one of the Chinese automobile manufacturers that have grown on their own innovations after the reform and opening-up policy was taken in China. Over the past two decades and more, Chery has gradually established the holistic technical and product R&D system, exporting products to over 80 countries and regions, and fostered famous models such as Arrizo, Tiggo, QQ and Fullwin. At the same time, the two joint ventures of Chery own such brands as Qoros, Jaguar and Land Rover, etc. Till today, Chery has sold more than six million vehicles, thus becoming the first Chinese automobile manufacturer whose sales exceed six million passenger vehicles. At the same time, Chery has exported more than 1.2 million units, ranking No. 1 in exporting Chinese passenger vehicles for 14 consecutive years.

Technical innovations

In the site of "Chery's Night" activities, the "City of Technology" and "City of the Future" built by the stage and gorgeous lights stood face to face: one representing Chery’s latest technology research and development result in this stage, the other representing its future technology strategy planning. Raymond Bierzynski, Vice General Manager of Chery Auto, and Damien Sotty, Chief Inspector of Power Assembly of Chery Shanghai Technology Center, Dr. Wayhe W, Assistant of General Manager of Chery Auto and Executive Director of Product Technology Center, Dr. Lu Weiyi, and James Hope, Executive Director of Design of Chery Auto, etc. appeared on the stage by turns. Through the form "Dialogue between the Present and the Future", they offered an in-depth interpretation of Chery’s platform technology, power technology, intelligent technology, the design concept of Tiggo concept car, the technical highlights and future planning.

Independent Innovation is the core of Chery’s strategic development. Since its inception, Chery has adhered to making independent innovations, working hard to become a technical enterprise. Till today, Chery has established the integrated product R&D system for the development, trial manufacturing and testing of finished automobile, power assembly, key parts and components. The R&D system is mainly developed by Chery General R&D Institute of Automobile Engineering in Wuhu, and supported by its branches in Beijing, Shanghai, Italy, Japan and Australia. Through independent innovation, Chery has made breakthroughs in DVVT, TGDI, CVT, new energies, intelligent technologies and other core technologies, thus stimulating technical upgrading of all-series products. By the end of 2016, Chery had applied for 14,316 patents, 9,155 of which had been granted, ranking No. 1 among all Chinese automobile manufacturers.

To ensure product quality from the source, narrow gap with overseas development capacity, improve ability in independent innovation and establish the internationally-recognized capacity in testing and authenticating vehicles, parts and components, Chery invested nearly 2 billion Yuan to establish its Test & Technical Center, in February 2006, which covers close to 300,000m2, including 8 laboratories in automobile parts and components, environmental protection and energy-efficiency, vehicle roads, power assembly, NVH, passive safety, materials and measurement, a vehicle operational stability/NVH trial way. The Center is capable of 2,600 test items in 23 professional modules, such as the testing, development and verification of reliability of finished automobiles and parts and components, operational stability, NVH, safety, environmental adaptability, power, economics, electric and electronic appliances/EMC, AC system, weather resistance, emission, materials and other performances.

Strategic transformation and achievements

2016 marked the first year for Chery’s strategic transformation into stage 2.0. The all-new Chery 2.0 products were successively launched into the market. The three models launched in 2016, namely, Arrizo5, Tiggo7 and Tiggo3x comprehensively reveal the product and brand power of Chery Strategy2.0 Era, triggered rapid growth of sales. In 2016, Chery (Group) sold 705,000 units in total, rising by 28% YOY, placing Chery in Top 10 automobile manufacturers in China. Also in 2016, Chery exported 88,081 units, accounting for 28.4% of total export of Chinese brands of automobiles, ranking No. 1 in exporting passenger vehicles in China for 14 consecutive years.

2017 marks the 20th anniversary of Chery, a fresh start of the manufacturer. In the future, Chery will continue to uphold its mission“craftsmanship builds the excellent brand”, adhere to the path of strategy 2.0, rely on technology 2.0, quality 2.0 and Internationalization 2.0, focus on consumers’ experience, and make integration and innovation. By 2020, it will achieve the goal of becoming the leading Chinese automobile manufacturer.

Build International Brand

Building “international brand” has always been the strategic goal of Chery. Concentrating on both domestic and international markets, Chery is active to implement the “going out” strategy and has become the first passenger vehicle manufacturer in China that exports finished automobiles, CKD parts, engine, and assembly technologies and equipment to the other countries and regions in the world. Second, recent years have seen Chery pushing forward its global layout, shifting from simply “going out” to “getting rooted in overseas markets”. By fulfilling the product strategic, localization strategy and HR strategy, Chery has kept in-depth cooperation in the overseas markets. Third, Chery integrates its global resources and partners with multinational companies along the whole industrial chain.

Internationalization path of Chery

Path 1: product strategy. Chery is the first automobile manufacturer in China that has exported finished automobiles, CKD parts, engine, and assembly technologies and equipment to the other countries and regions in the world. Till today, Chery has been ranking the first place, for 14 consecutive years, in export of Chinese automobiles, totaling more than 1.2 million units of export. It has built 10 overseas production facilities and nearly 1,500 sales and service outlets, thus forming the powerful market reach. In some countries, such as Iran, Venezuela, Chile and Egypt, Chery has been included in the list of major automobile brands.

Path 2: Localization strategy. Chery has established three business regions in Iran, Middle East and Central-South America, owned 3 overseas companies and exported to more than 80 countries and regions. It has built the product adaptability development and reform mechanism targeted at various national markets, and established local HR training mechanism to upgrade global HR team development for Chery. Localization strategy has broken away trade barriers among nations. In this way, Chery products go deeper into local market and access surrounding markets. While reducing cost and exporting products, it has also introduced brand, culture and HR.

Path 3: Internationalization strategy. By establishing plants overseas, Chery gets into capital and technical partnership with leading international enterprises, thus getting into the global market in a holistic way. International partnership of Chery can be found along the entire industrial chain. It has sound international partnership with AVL of Austria, Johnson Controls and PPG of US and other world-famous enterprises in the fields of R&D and parts and components. Even more, it has also established JV or got into strategic partnership with Valeo of France, Bayer and Bosch of Germany, etc. Through these partnerships, Chery intends to learn the best practice in the world, improve its core technologies and brand value, explore overseas markets and seek common development of partners.

Internationalization process of Chery

Stage 1: Go out. In trade development stage in initial period of going internationalization, focusing on itself, Chery keeps accumulating its power by adopting the international model. Based in China, Chery aims to “go out” and become international. Chery exports products by establishing production facilities together with its overseas partners. It focuses on markets in developing countries and emerging economies. And the capital partnership concentrates on partnership in technologies and parts and components.

Stage 2. Go in. After experiencing more than 10 years of development, Chery has enhanced its strength and accumulated international experience, thus having well-developed automobile industrial chain system, strong capacity in independent innovations and large scale of production and sales. It has got into the stage of market operations and started to implement the proactive market planning and marketing management so as to push forward brand building and get ready for its global strategy.

Stage 3: Go further. After 2020, Chery will get into the stage of global operations. In this stage, it will implement the brand strategy and finalize the global layout. By partnering with world-leading enterprises, it will participate in international competition and develop ability in international development in a diverse way so as to establish the global automobile brand with competitiveness.