Although the global financial crisis is negatively impacting the automotive industry worldwide, Chery regards the current downturn as an opportunity to optimise its operations in terms of management, innovation and sales.

This is according to Mr Biren Zhou, President of Chery International and Vice President of Chery Automobile Co., Ltd, who is currently on a visit to South Africa. 

Chery's confidence stems from the fact that in 2008, the company sold more than 356 000 vehicles, indicating that consumers are starting to purchase vehicles more rationally, with small-displacement vehicles most popular amongst buyers. 

"Ranked as the top independent Chinese passenger vehicle manufacturer, we believe that Chery has entered another phase of rapid growth whereby annual sales have increased by 30% for the third consecutive year," said Zhou.

The company is planning to increase sales by 17.7% to 419 000 units in 2009.

Since the one-millionth car rolled off its production line in 2007, Chery has focussed its attention on the international market, expanding international cooperation and markets in order to become more globally competitive. 

Chery exported 135 000 units to more than 70 countries in 2008, a ten percent increase on 2007.  Subsequently, exports as part of the company's total sales volume has increased to 30% in 2008, with South Africa becoming an increasingly important contributor. 

"South Africa has become a very important export market for us, and is currently Chery's biggest right hand drive market," said Zhou.  "With the current steady growth in sales, we are considering the feasibility of setting up a manufacturing plant in South Africa."

The company has eight overseas plants, with a ninth currently under construction.  The company has a current production capacity of 650 000 completely built units per year, with the ability to build a similar number of engines and 400 000 gearboxes annually. 

However, according to Zhou, the company's focus has shifted from an increased production rate to an emphasis on quality and intensive research and development.  "Not only has Chery achieved the status of the best-selling domestic car brand in China, it has also attained international standards for the quality of its manufacturing processes," said Zhou.

Chery adopted a corporate strategy of "Quality, Brand and Service" in 2008, and is committed to continue its objectives of innovation and global competitiveness.  As part of this objective, the Chery A3 has become the first Chinese car to undertake a 100 000 km test run before launch.  The vehicle has also received a five star C-NCAP rating.

The company has also entered the alternative energy arena with the launch of the Chery J5 BSG and ISG Hybrids, offering an affordable environmentally friendly vehicle.  As China's first mass-produced hybrid vehicle, the Chery J5 Hybrid adopts an operational mode by which an electric generator supplements a gasoline engine.

China is currently the second largest new vehicle market in the world.  The Chinese auto industry increased sales by 6.7% in 2008, totalling 9.38 million units, of which 6.43 million were passenger vehicles. Most global players have set up joint ventures within the country, including Volkswagen, General Motors and Toyota. 

Chery in South Africa

Since its launch in May 2008, Chery South Africa has managed to establish its credibility as a provider of quality value for money passenger vehicles in the volume segments of the South African market.  Chery has sold 2 536 vehicles since inception, making it one of the up-and-coming brands amidst challenging market conditions. 

Three models are currently available on the local market - the QQ3 minicar with a choice of 0.8-litre and 1.1-litre engines, the J5 sedan and Tiggo SUV, both with a two-litre ACTECO engine developed by Chery in conjunction with the Austrian power train company, AVL-List.

Within the next six months, Chery will be introducing a number of new models to the country, first of which will be automatic versions of its current range together with a 1600 cm³ version of the popular Tiggo SUV - set for launch within the next month. 

This will be followed by the highly-anticipated Chery J1 1.3 TX hatchback in the second half of 2009.  This dynamic vehicle boasts modern design and a range of conveniences and standard equipment, coupled to a zippy 1.3-litre 16-valve engine.  

In a time when consumers are faced with numerous economic challenges and pressures on their disposable income, including fuel price and interest rate increases, affordable motoring has become a priority for many.  The company believes that the Chery model line-up delivers on the promise of affordable yet quality motoring time and again

Proof in point is that Chery came in second and third positions in the 32^nd Total Economy Run in 2008.  The two Chery QQ3 hatchbacks - a 0.8-litre model and a 1.1-litre version - competed in Class A (petrol-engined cars with engine capacities between 750 and 1 150cm³⁾.

Further proving its quality and durability, Chery set the South African and African 48-hour endurance records for 800cc and 1100cc vehicles in September last year. 

As part of this first-of-its-kind record-setting run, three Chery QQ3 1100cc TXE and two QQ3 800cc TX models completed more than 6 300km and 2 423 laps of the 3km high-speed oval track at Gerotek Test Facility.

To bear testament to the fuel efficiency of these vehicles, the records were set at exceptional fuel economy figures considering that the vehicles drove the entire 48-hours at top speed.  The number one car, a QQ3 1100cc, managed an average speed of 151.2 km/h, while the best performing 800cc model averaged 132.7 km/h over the 48-hour period. 

After 48 hours on the track, and without experiencing any mechanical problems or breakdowns, the record was set at 7 262km and 6 369km for the Chery QQ3 1100cc and 800cc respectively. 

Chery also received acclaim from the authoritative Kinsey Report on parts pricing, with the Chery QQ3 0.8 TX being rated as one of the most affordable vehicles to own. 

When it comes to the parts basket for components not regularly replaced like water pumps, radiators and clutch plates, the Chery QQ3 0.8 TE beats the VW Citi Golf Sport 1.4i, its closest rival, by R148.23, and the Opel Corsa Light by R544.56.

Chery South Africa forms part of McCarthy Motor Holdings, a member of the Bidvest Group. 

The company has also established a strong technical support structure, which includes Chery specialists who are seconded from Chery in China.  Parts support to South Africa is also driven from Chery in China by a dedicated division, where the company has a complete electronic parts catalogue, as well as modern ordering systems to handle parts support to over 70 countries around the world.

All Chery cars are backed nationwide by McCarthy and come standard with the Chery 3 year/100 000 km warranty.

ISSUED BY: WILKEN COMMUNICATION MANAGEMENT

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FAX: (012) 460-4514

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ON BEHALF OF CHERY SA