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121892 Views 233 Replies 59 Participants Last post by  CCF mod
go to my blog to see some pictures -----
"the celebration of chery's 500,000th car born"

Pictures are posted below also
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On March 28th, Chery produced its 500,000th car ---- an A5 1.6L version



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Chery's first car, with employees' signitures on it


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China's Chery prepares to make a splash

von Geoff Dyer, Shanghai

The micro-car has changed the Chinese urban landscape and is now headed for the West; or so its manufacturers hope.

A decade ago, private cars in a Chinese city tended to be big and black. But over the last couple of years, a dash of colour has begun to appear on the streets, small darts of metallic lime green and garish yellow.
The bright colours are usually found on the QQ, a micro-car made by Chinese company Chery that was one of the bestsellers in the domesticcar market last year, with sales rising a 130 per cent to 110,000 units.
The QQ is one of the models that have taken Chinese companies from being bit players in their own car market to significant competitors. The best selling model in China last year was the Charade, a sub-compact car made by First Auto Works, another local manufacturer.
In total, Chinese brands won a market share last year of 26 per cent, up from 2 per cent in 2000, putting them just behind Japanese brands which had 27 per cent.
The surge of Chinese brands would be of natural interest to the leading global automakers because of the growing importance of the Chinese market. Yet it is of particular significance given that Chery and several other Chinese companies have announced plans over the last year to begin exporting cars to the US and Europe.
"I showed these market share figures to some people in Detroit a few weeks ago, and they were stunnedby the Chinese sales," says Michael Dunne, president of Automotive Resources Asia, a Shanghai industry consultancy.
The question being asked of the Chinese companies is whether they have won market share simply by selling at low prices, or whether they are also beginning to master the dark arts of branding and marketing - skills they will need if they are to succeedoverseas.
Price is definitely a big factor. The QQ retails for Rmb33,000 ($4,109), compared with Rmb46,000 for the General Motors Spark in the same category.
Such low prices have helped create a new generation of car-buyers, less concerned about the status symbol of a large vehicle. The greater fuel efficiencyof smaller cars has been an added incentive in a period of higher oil prices.

The Chinese companies have so far faced lower research costs. The QQ first won notoriety through allegations that it was a near-exact copy of the Spark, including the components as well as the shape. Indeed GM suedChery in China, although the two companies settled the case last year.
When asked why the QQ is so much cheaper than the Spark, the manager of a Chery dealership in Shanghai quipped: "Because we do not have patent fees."
QQ sales were more than four times those of the Spark last year. Yet industry observers say there is more to the QQ's success than a low price.
Unlike most other Chinese brands, whose marketing involves glitzy gimmicks, Chery has managed to create a significant amount of buzzaround the model, especially among young people.
The brand itself is also the name of an instant messaging service that is popular among young Chinese and the company has used the internet - including collaborations with the portal - to reach new consumers. The bright colours have also helped establish an image.
"More than any other Chinese model, the QQ has managed to establish an identity for itself," says Chris Reitermann, managing director of the Beijing office of OgilvyOne, the advertising agency. The company's sales network has been revamped and is beginning to win plaudits for its flexible approach.
However, there are still quality concerns about Chery's cars. According to JD Power, the car consultancy, the QQ generated 30 per cent more problems than the Spark last year. When Chery starts selling in the US, nothing could scupper its brand name more quickly than persistent quality complaints., 14:50 Uhr
© 2006 Financial Times Deutschland
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this is bad news anyway you look at it :(
Chery to Enter Commercial Vehicle Sector in China

Chery Automobile, China's rising independent carmaker, is preparing for a foray into the commercial vehicles sector to speed up its expansion, according to sources familiar with the company.

The carmaker in Wuhu, a city in East China's Anhui Province, has formed a commercial vehicles unit based on a failed bus plant acquired from the nation's top vehicle producer First Automotive Works Corp (FAW) at the beginning of this year, sources said.

Chery plans to start production of its own-brand commercial vehicles in 2008, aiming for an annual output of 300,000 units by 2010, sources said.

It expects to reap 10 billion yuan (US$1.2 billion) in sales revenue from the commercial vehicles business annually in 2010, one-eighth of its overall turnover in the year.

According to Chery's website, it aims to boost overall sales to 1 million vehicles a year by the end of this decade from 189,000 units last year.
The company currently makes low-cost cars under its own badge.

It has also set up a commercial vehicles engineering institute to develop new products. Commercial vehicles include trucks and buses.
A Chery spokesman yesterday declined to confirm the commercial vehicles sector plan.

The bus plant, also located in Wuhu, was launched in 1993 by FAW and the local government with an investment of 470 million yuan (US$58.7 million). It has a manufacturing capacity of 2,000 buses and 30,000 chassis a year.
But the plant hit severe financial trouble in 2002 due to sluggish sales.
Zhao Shengli, an auto analyst with China Galaxy Securities Co Ltd, said it's a "natural move" for Chery to enter the commercial vehicles market as it needs a broader product spectrum to achieve its ambitious sales target.

"It therefore aspires to the commercial vehicles sector. China's commercial vehicles market will continue to grow in the coming years, but competition has been very fierce with lots of players," Zhao told China Daily.

He predicted demand for commercial vehicles in China would increase by 5 to 10 per cent annually in the years to 2010.
According to industry statistics, demand in the first half of this year stood at 1.02 million units, up 7.71 per cent from a year ago.
"As a major home-grown brand, Chery can gain strong backing from the government and banks," Zhao said.

The company appears to have a sound cash flow as many investment banks are persuading it to list on the stock market, he added.
Industry data showed that Chery's profits surged by three-fifths year-on-year to almost 112 million yuan (US$14 million) in the first half of this year on blistering sales growth.

The company sold 144,200 cars in the period, driving up its sales growth by 72 per cent. Brisk sales made it the No 6 Chinese vehicle group after FAW, Shanghai Automotive Industry Corp, Dongfeng Motor Corp, Chang'an Motor Corp and Beijing Automotive Industry Corp.

While Chery is an independent company, its bigger competitors all assemble foreign-brand cars.
Chery expects to sell more than 300,000 vehicles this year.
Its current line-up contains micro cars, compact and mid-sized sedans, multi-purpose vehicles and compact sport-utility vehicles, which retail between 32,400 yuan (US$4,100) and 169,800 yuan (US$21,200).
The company is leading China's car exports.
From Janaury to June, it exported 13,548 cars, accounting for two-fifths of the nation's total car shipment overseas.

Source China Daily
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Chinese small car Chery QQ makes good start in Indonesia

Since its launch on the Indonesian market last month, Chinese small city car Chery QQ has booked sales of 200 units with more on the waiting list, the local distributor said Wednesday.
"We don't expect the demand will be quite big. We also have orders on the waiting list," said Gunadi Shinduwinata, president of the country's leading automotive distributor Indomobil Group.
Given the promising market, Indomobil plans to open 11 new outlets across Java and Bali islands, he said.
Manufactured by Chery Automobile Co. Ltd., the 800-cc car is priced at around 67 million rupiah (7,334 U.S. dollars), available in standard and luxury models.
The manufacturer claimed Cherry QQ has the best mileage in its class, with 25 km per liter of gasoline.
Indomobil has targeted sales of 1,000 units by the end of the year.
Source: Xinhua
CHINA: Chery 2006 sales up 61%

CHINA: Chery 2006 sales up 61%

10 January 2007| Source: editorial team
Chery Automobile 2006 car sales jumped 61% to 305,200 spurred by the launch of new models.
hello said:
Chery Automobile Co., China's biggest domestic automaker, plans to set up three assembly plants abroad in the Middle East, Eastern Europe and South America, .
This is very smart of chery since instead of going straight to US, go after developing markets that are in need of cheap cars and where US and Japanese cars dont have the strongest hold.
China's Chery Jan 2007 sales 37,207 vehicles, surpasess sales of VW ventures

BEIJING (AFX) - Chery Automobile Co Ltd sold 37,207 cars in January, putting it ahead of Volkswagen's two joint ventures, the Shanghai Securities News reported.
Citing sources at Chery, the newspaper said General Motors' joint venture Shanghai GM led the market with sales of 40,570 vehicles while Shanghai VW and FAW-VW sold 35,128 and 32,084 vehicles, respectively.
The report did not provide comparative figures.
Chery Auto's sales in 2006 rose 61 pct to 305,200 vehicles. It has set a 2007 vehicle sales target of around 400,000.
great post hazik! this is a very big achievement in the auto world for any auto manfucaturer, espectially this quickl
CHERY produced its 2 millionth car !

a great milestone for a great chinese automaker. Soon we will see its 5 millionth car

Chery's 2 millionth vehicle rolled of the production line on March 26. Chery announced the formal launch of two brand new models including the X5 and H5 at an off-line ceremony.

With a total output of 2 million units, Chery has become China's fifth largest manufacturer of passenger vehicles, after Shanghai Volkswagen, FAW-Volkswagen, Shanghai General Motors and Guangzhou Honda. Chery is also China's first enterprise which has independently developed and manufactured 2 million passenger vehicles.

Chery’s 1 millionth vehicle rolled off its assembly line in 2007. So far, the automaker has put an end to its first development stage characterized by “rapid and satisfying development," and has entered a brand new development stage, during which it will improve product quality, service, brand image and increase brand value.

Owing to 10 years of technology research and development, Chery spent one-fourth of the time it took to manufacture its first million vehicles to make the second million. At the same time, Chery exported 230,000 vehicles over the past two and a half years, 1.6 times its total export volume for the previous seven years, accounting for 45 percent of China's total. So far, Chery has become China's biggest exporter of passenger vehicles for seven consecutive years. As a leading enterprise, Chery has fully demonstrated the "Chery Acceleration."

Chery's strategic development goal is to develop itself into a global brand and become a "Chinese business card." To this end, it has formulated a six-year medium-term development strategy between 2008 and 2013. Following the preparations in 2008 and the overall arrangement in 2009, Chery will improve its product quality and marketing operations in 2010. It has already made preparations to embark on a new development journey.

"Although the figure of two million does not mark an outstanding milestone in Chery's development course, it is a solid step in Chery's 'Long March' to build up a world famous brand for China's automobile industry. This step will help us to lead the advancement of Chinese-brand vehicle manufacturers in a faster and sounder development manner," said Yin Tongyao, chairman and general manager of Chery.

By People's Daily Online
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