In July 2012, Chery released the export data for June. Chery sold 20,012 units in June 2012, up 20.7 percent year on year. This marks the second time that Chery has exported 20,000 units a month after exporting 20,093 units in May, setting a precedent that a Chinese independent automaker exported over 20,000 units for two consecutive months, opening a new page in the overseas development of China’s automobile.
Since 2011, Chery has stepped up its efforts in overseas development, actively sought feasible strategies suiting its development, taken the initiative and vied for overseas markets. In 2011, Chery exported a record 160,200 units, up 73 percent year on year. According to statistics, Chery exported 92,494 units in the first half of 2012, up 28.8 percent year on year, and is expected to fulfill the annual export target of 170,000 units in advance. Such brilliant results did not come easy. The aftermath of the economic recession triggered by the international debt crisis and financial crisis still exists, real economies remain weak, and the global auto market is faced with a grim situation of standstill and fiercer competition. Besides, efforts should be made to cope with factors including RMB exchange rate fluctuations, high production costs and political instability in some export destinations. However, Chery has maintained stable growth under heavy pressure. At these levels, Chery has worked a miracle of China’s automobile.
China’s automobile never lacked dreams: when the dreams of “building China’s own cars” and “large auto country” came true, China’s automobile longed for growing stronger and marched towards the greater dream of “auto power”, and the strategy of “going out” for global market competition became the only way to fulfill the dream. Over the past decade since China’s entry into the WTO, China has made great strides in overseas development, fostering a host of independent automakers focusing on overseas development. Chery is more like an epitome of the overseas development of China’s auto industry.
Since Chery exported its first car in October 2001, the average annual growth reaches 163%, creating a miracle for the growth of China’s auto exports. Meanwhile, Chery’s cumulative exports jumped to 500,000 units in April 2011 and 700,000 units in early June 2012. Chery has kept ahead in China’s passenger vehicle exporters for nine years in a row and China’s auto exporters for six years in a row. Undoubtedly, Chery has become a pacesetter in fulfilling China’s auto dream.
dream in the “new decade”
Chery’s constant oversea successes and breakthroughs were no accident, but closely related to Chery’s efforts to elaborately conduct overseas distribution with global vision, reform its management system according to situation, integrate superior resources in light of local actualities and enhance brand influence. At the new stage in 2012, Chery conducted intensive systematic planning of business management, and took the opportunity of the “decennial celebration of Chery International in 2012” to unfold global distribution and drive the “new-decade” development mode of Chery International with the “fine mode”.
Expansion of globalization scale. Aiming at different characteristics of overseas markets, Chery has progressively expanded its overseas market scale in different forms including CKD and vehicle export. So far, Chery has moved into over 80 countries and regions, built 16 manufacturing bases abroad, accomplished the coverage of the global auto market through the radiation of markets where these bases are located, and gradually formed 1,153 distribution outlets and 1,188 customer service outlets. A growing number of global partners have teamed up with Chery. Ever-increasing overseas sales outlets have basically showed Chery’s growing comprehensive strength, which has not only satisfied demands of overseas markets and intensified product sales, but also expanded Chery’s global market scale.
More remarkably, Chery has exclusively invested in building a plant in Brazil. With a total investment of 400 million U.S. dollars, the plant is scheduled to be built up and come on stream in late 2013, with an annual production capacity of 150,000 units, thus becoming Chery’s largest overseas manufacturing base that boasts advanced processes of stamping, welding, coating and assembling. Meanwhile, an auto industry park has been built to manufacture parts for the vehicle plant in Brazil, bringing into being a localized manufacturing base covering the entire auto industry chain. This is the greatest move of China’s independent automakers in their efforts to “go out”, will form a brand new marketing mode and marks a new milestone in the globalization of China’s auto brands.
Transformation of marketing management. Chery is an automaker that has been growing through independent innovation. Chery believes all previous experience and accumulation is precious wealth. Transformation is exactly turning wealth of experience into corporate capacity, duly adjusting business means and marketing management according to market environment, adding value for customers and making profit for enterprises in various ways. Chery has taken the first step: it has switched from passive international trade to active marketing, from passive adaption to markets to active planning of markets. Meanwhile, Chery has set product standards according to characteristics of different markets, and chosen key models specific to market environments of different countries and regions, thus boosting its business capacity. Besides, Chery will start from such aspects as service network coverage, response speed and customer service management capacity to comprehensively enhance overseas service standards, constantly enhance customer satisfaction and promote the gradual perfection of its marketing system.
Optimization of product structure. Now Chery is concentrating on conducting technical development, constructing an R & D structure combining all its research institutes, accomplishing integrated R & D, gearing its manufacturing processes to international general processes, perfecting Chery’s product structure management mechanism and ensuring products are up to quality standards. Besides, Chery has integrated global superior resources through diversified cooperation, and developed internationally competitive fine models according to its product features. These models have become main forces in overseas markets. Data show fine models including Tiggo, A3 and Fulwin 2 have contributed over 70 percent of Chery’s total exports in the first half of 2012. For sure, with the objective of “making right, good and competitive products”, Chery is pulling together advanced technologies in the world, constantly enhancing its product strength and core brand competitiveness, and creating a more all-round distinctive global competitive edge. This is also the only way for Chery to become a sustainable international brand.
2012 marks the opening of the “new decade” of Chery International. In just-concluded first half of 2012, Chery’s performance was esteemed and gave us the hope of fulfilling the dream of China’s auto dream. But in the meantime, we should also see China’s automobile still has a long way to go to fulfill the global dream compared to world top auto brands. Only after establishing a perfect overseas market system covering the whole industry chain and successfully entering key global markets, can Chinese independent brands declared the fulfillment of the dream. Chery is working on all this and earning recognition and trust from global consumers by its ever-growing “strength”.