6+ interesting things to know about Chery Automobile

Chery Automobile Co., Ltd., founded in 1997 and headquartered in Wuhu, Anhui province, China, has established itself as a significant player in the global automotive industry. As the fifth-largest automobile manufacturer in China, Chery sold approximately 1.88 million vehicles in 2023, with a substantial portion of sales coming from international markets. This article delves into the history, technological advancements, product lineup, and market strategies of Chery, providing a comprehensive overview of the brand.

History and Development

Chery’s inception was marked by a government initiative to establish a local automobile manufacturer. The company began producing vehicles in 1999, launching its first model, the Fengyun, which was based on a licensed SEAT chassis. In its early years, Chery relied heavily on technology acquired from other manufacturers, including reverse engineering practices that led to legal challenges, notably a lawsuit from General Motors in 2003 for design infringement.Despite these challenges, Chery quickly evolved its capabilities. By 2006, it had developed its own engine brand, ACTECO, which met Euro IV emissions standards and was designed with modern technologies such as direct fuel injection. This marked a significant shift towards self-sufficiency in technology and production capabilities, allowing Chery to enhance its product offerings and quality standards.

Technological Advancements

Chery has been proactive in adopting modern manufacturing techniques and technologies. The company has established collaborations with international firms, including AVL for engine development and Lotus Engineering for vehicle design. These partnerships have enabled Chery to produce a diverse range of vehicles, including traditional internal combustion engine models and electric vehicles (EVs).Chery’s commitment to innovation is evident in its multi-brand strategy, which includes several sub-brands catering to different market segments. This approach allows Chery to diversify its product range and appeal to a broader audience. Notable brands under Chery include:

• Chery Fulwin: Focused on plug-in hybrid vehicles.
• Chery New Energy: Specializes in electric vehicles.
• Exeed: A premium vehicle brand.
• Jetour: Concentrates on SUVs.
• Karry: Targets commercial vehicles.

Product Lineup

Chery’s product lineup is extensive, featuring a variety of models designed to meet diverse consumer needs. The company has made significant strides in the electric vehicle market, with models such as the eQ1 and eQ7, which cater to the growing demand for sustainable transportation options.

Key Models

1. Chery Tiggo Series: A popular line of SUVs known for their affordability and features.
2. Chery Arrizo: A series of sedans that offer a balance of style and performance.
3. Chery QQ: A microcar that has gained popularity for urban commuting.
4. Chery Fulwin A8: A plug-in hybrid sedan that represents Chery’s commitment to electrification.

Chery has also made significant investments in assembly plants outside China, enhancing its global footprint. The company has established a joint venture with Jaguar Land Rover, producing luxury vehicles in China, which further diversifies its offerings.

Market Strategy and Global Presence

Chery has been a pioneer in exporting Chinese vehicles, starting its international sales in 2001. By 2023, it became the top exporter of Chinese brand passenger vehicles, with exports accounting for over 52% of its total sales. The company has strategically focused on markets in Asia, Africa, and Latin America, adapting its products to meet local preferences and regulations.Chery’s approach to market expansion includes establishing local assembly plants and forming partnerships with local distributors, which allows for more efficient logistics and better customer service. The company’s flexible manufacturing practices enable it to adapt quickly to changing market demands without incurring high fixed costs.

Challenges and Future Prospects

Despite its successes, Chery faces challenges, including intense competition from both domestic and international automakers. The perception of Chinese vehicles as low-cost alternatives has hindered brand prestige, prompting Chery to invest in improving product quality and customer service.To enhance its market position, Chery is focusing on:

• Brand Awareness: Increasing recognition through marketing and partnerships.
• Research and Development: Investing in innovative technologies to improve vehicle performance and sustainability.
• Quality Improvement: Ensuring that products meet international standards to compete effectively in global markets.

Chery’s commitment to innovation and quality, coupled with its strategic market expansion, positions it well for future growth in the competitive automotive landscape. As the company continues to evolve, it aims to solidify its reputation as a leading global automobile manufacturer.