Preface
In 2023, a Chinese self-branded automotive giant quietly achieved astonishing performance, with export sales far exceeding BYD!
This company, relying on very "ingenious" business tactics and market planning, has been quietly making a fortune in the automotive market!
So, who is this auto brand that made a whopping 300 billion and ranked first in exports?
First in Exports
Actually, this brand is not unfamiliar to everyone, it is "Chery," once the leader of Chinese self-branded brands.
Chery Automobile once won the championship in self-branded sales for 12 consecutive years from 2000 to 2012.
Although in recent years, BYD has been far ahead in the sales of new energy vehicles and has a strong supply chain and profitability.
However, Chery can be described as "full of ingenuity," having quietly developed in the overseas market for many years, thus making Chery the true "leader" in self-branded exports.On January 12th of this year, it was announced through the General Administration of Customs that BYD exported over 240,000 vehicles abroad in the year 2023, while Chery's export volume was more than four times that of BYD.
Chery Automobile exported as high as 937,000 vehicles abroad for the whole year, accounting for nearly 20% of China's automobile export volume, which can be said to be far ahead of other independent brands.
Not only that, but in January of this year, Chery exported 90,000 vehicles abroad, which can be said that Chery will continue to lead in foreign exports this year.
In fact, not only this year, Chery Automobile has been the top exporter of Chinese independent brands for more than 20 years, and Chery has no competitors in the export volume of vehicles domestically.
Due to Chery's early overseas layout, it exported its first batch of "Fengyun Series" Chery cars to the Middle East's Syrian region in 2001, not long after its first car was launched.
In the following years, Chery quietly developed engine technology and successfully created China's first independent brand of automobile engine ACTECO in 2005.
A year later, in June, Chery successfully exported 2,100 Chery self-manufactured engines to the United States, which can be said that Chery is very powerful in the field of independent research and development!
After that, Chery embarked on a large-scale entry into foreign markets, not only opening up markets in the Middle East but also gradually exporting many Chery cars to Eastern Europe, Western Europe, North America, and South America.
In 2008, the total volume of Chery's vehicle exports reached 135,000, which was a very good performance for independent car brands at the time.So, how does Chery manage to make a fortune quietly in overseas markets?
Making a fortune quietly
In addition to Chery's strong technological capabilities in automobile manufacturing, Chery places great emphasis on the international market and has made early strategic deployments.
To ensure better development of its vehicles in overseas markets, Chery has adopted numerous strategies, which can be described as "extremely strategic."
Chery has not only implemented localization strategies in some foreign regions, reducing its production and transportation costs, but also gaining a better understanding of local consumer preferences to create products that are more suitable for international markets.
Moreover, Chery has a very clear positioning for its products, understanding very well where it stands in the automotive product market. Therefore, many of the cars launched by Chery are practical and offer excellent value for money, which are the favorites of overseas consumers.
Furthermore, Chery leads many automotive brands in fuel vehicle engine technology. Chery's third-generation engine technology has achieved a thermal efficiency of 37.1%.
This efficiency is comparable to that of engines used by luxury car brands of traditional foreign automakers. In addition, Chery is continuously developing its fourth-generation engine technology.
Therefore, in the eyes of consumers in the international market, Chery automobiles not only have appropriate prices but also possess very good performance.
In addition, there are other reasons. Chery's export business covers a wide range. Chery not only has a strong market for fuel vehicles abroad but also has strategic deployments in hybrid electric vehicles, pure electric vehicles, and hydrogen energy vehicles.It can be said that wherever there are race tracks related to automobiles, the presence of Chery can be seen.
Moreover, Chery has a wide variety of models internationally, which can meet the needs of different consumers in the global market.
Chery Automobile has 8 upgraded and iterated fuel models in the "Chery" series, as well as 5 brand-new hybrid models, covering and segmenting the market, giving consumers more choices.
Not only that, Chery Automobile is also very strong in the field of comfortable and high-end with the "Exeed" series, and there is also the "Jietu" series, which is mainly positioned for long-distance travel.
There is also the "ICAR" series, which is aimed at the international young people's market, with all-aluminum electric four-wheel drive SUVs and a strong and atmospheric appearance, leading the international market.
Chery is like a science student; it rarely promotes itself but has been quietly developing, focusing on research, technology, and innovation.
Despite this, Chery is still very strategic because after years of fighting in the international market, Chery knows exactly what kind of cars international consumers need and has been quietly conquering the overseas market through technology and experience, which is why its overseas exports far exceed other domestic brands.
Therefore, Chery's "quiet wealth" is the result of Chery's decision-making layer being very strategic and laying out overseas and improving technical levels long-term.
However, as the number one self-owned brand exported to overseas markets in China, Chery's development has been full of twists and turns.Chery Automobile Development
Chery Automobile is one of the earlier state-owned automobile companies established in China, but it does not have the national team title like FAW (First Automobile Works) or Dongfeng. It also lacks the local state-owned enterprise status of a first-tier city like SAIC (Shanghai Automotive Industry Corporation) or GAC (Guangzhou Automobile Group). It is merely located in a third-tier city and has not yet gone public on the stock market.
Chery Automobile originated from an ordinary prefecture-level government's automobile project in Anhui Province, without receiving much support. In the early 1990s, as China's economy began to take off, many local governments wanted to help their people solve economic issues, and the Wuhu Municipal Government was no exception. Therefore, they decided to establish Anhui Auto Parts Company, which was the predecessor of Chery Automobile.
After its establishment, Chery began to look for projects nationwide. Initially, they negotiated a cooperation with FAW, but the talks did not come to fruition after some time, possibly because FAW did not see much potential in Chery.
A chance opportunity then changed the fate of Chery Automobile. During a visit to the European automotive industry in January 1995, Chery Automobile Co., Ltd. coincidentally learned that Ford had an engine production line for sale. Seizing this opportunity, the leaders of Wuhu, Anhui, managed to get the project off the ground.
Although it was a second-hand engine production line, it still cost thirty million US dollars. What was even more unexpected was that after selling the production line, Ford in the UK was concerned about the leakage of their technology and required British experts to be responsible for the installation and commissioning of the entire production line.
However, when this "British expert" arrived in China, he was lazy and unmotivated every day, and the progress was very slow. Chery had spent a lot of money to quickly start the production line, but now the commissioning and delivery seemed far from being realized.Therefore, with a grand gesture, Yin Tongyao, the founder of Chery, declared, "Let the British go, we will do it ourselves. If we fail, I will jump into the river."
After more than a hundred days and nights of hard work, under Yin's leadership, a group of young people managed to complete the production line's debugging and installation task more than half a year ahead of schedule.
Finally, in 1999, the first car was unveiled, and it was given a name deeply rooted in Chinese culture, "Chery," which implies "legendary and auspicious."
Since then, Chery Automobile has developed smoothly. By 2007, it already had nearly 20,000 employees, with total assets reaching over 20 billion, and had launched 26 models into the market, which were highly favored by consumers.
After more than a decade of development, Chery Automobile has become very popular in overseas markets. In 2022, it exported 450,000 vehicles abroad, accounting for 30% of Chery's total sales for that year.
Last year, in the first half of the year alone, the total number of vehicles exported abroad reached 394,000. It's important to note that this sales volume already accounted for more than 53% of Chery's total sales in 2023.
So, why is Chery Automobile so popular abroad?
Why is Chery popular abroad?
Details determine success or failure, and strength determines everything.
Firstly, Chery is very responsible both domestically and internationally. Chery has always focused on quality, insisting on providing high-quality products for users worldwide.Chery's "Global Quality Management System" is applied across its six global R&D centers, ten production bases, and 1,500 overseas dealers and service outlets worldwide, ensuring that global users can enjoy the highest quality products.
In addition to its strong focus on quality, Chery also conducts one-on-one customer research to understand the needs of international users, conducting as many as 3,000 user surveys in Russia alone in 2021.
Chery has put a lot of effort into localization overseas, which has made it the most imported car brand in Russia. Moreover, Chery has also achieved excellent sales in Middle Eastern countries such as Egypt. Through user research, Chery found that in these desert areas, many car seals are easily worn out by fine sand.
To address this issue, Chery's engineers have developed solutions through experimental development. Furthermore, for countries with many hills like Argentina, Chery has also introduced various solutions to address the pain points of international users and to deeply understand the diverse needs of users in different regions.
High standards of quality control and localized adjustments have allowed Chery to break into overseas markets. In 2022, Chery became the first Chinese company to pass the ISO/TS16949 certification, which is officially known as "Quality Management System - Implementation of ISO 9001 Special Requirements for Automotive Production Parts and Related Service Parts Organizations." The audit requirements for this certification are extremely stringent.
Moreover, Chery actively participates in auto shows in various countries and regions abroad. It once shone brightly at the São Paulo Auto Show in Brazil, setting a record for the largest exhibition booth size, and users in the international market have surprisingly high evaluations of Chery.
Local media have given extremely high evaluations, stating that today's Chinese-made cars have caught up in both quality and design, and they have aroused great interest among Brazilian consumers.
Therefore, Chery cars not only have quality assurance but also have a price advantage and strong competitiveness in design. The 5-year warranty commitment is also the confidence of Chery cars!For various reasons, Chery's ability to quietly make a fortune in the overseas market is not only due to its technological prowess but also because it has put in a great deal of effort in facing overseas localization, which has made it the current leader among Chinese independent brands in foreign markets.
Conclusion
Relying on its strong strength and advanced market planning, Chery has shone brightly in both domestic and foreign markets. With a revenue of 300 billion, it has entered the Fortune Global 500 in one fell swoop.
In the end, I hope that all Chinese independent brands can go global and export Chinese cars to every corner of the world!
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