CHERY CONTINUES GROWTH DESPITE INTERNATIONAL ECONOMIC DOWTURN
2009-02-23
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 sold2 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 32nd 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.
Chery’s
service parts are some of the most affordable on the market today, beating all
competitors when it comes to the parts basket used for regular
maintenance. This includes
manufacturer components like air filters (R59.29), fuel filter (R43.34) and
front brake pads, at R194.52 almost R120.00 cheaper than the closest
rival.
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
TEL:
(012) 460-4448
FAX:
(012) 460-4514
E-MAIL:
flip@icon.co.za
ON
BEHALF OF CHERY SA
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