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5 key points shaping Chery’s ascent in PH and rest of the world

5 key points shaping Chery’s ascent in PH and rest of the world

Charles Buban

It began in 2001. Chery Automobile calls it “internationalization” wherein for a period of 20 years, it will attempt to go out of China; build several factories abroad; and finally, strengthen the brand, and its global competitiveness. By the end of this year, the 24-year old automaker may have succeeded in its mission: nearly 9.5 million motorists from more than 80 countries and regions now drive a Chery.
Additionally, Chery now has 10 overseas factories, more than 1,500 overseas dealers and service outlets, which enabled the company to be ranked first in the number of passenger cars exported from China for 18 consecutive years.

1. From local to going global
Chery initially adopted a cost strategy based on imitation but as a consequence, it had to face a lawsuit for design piracy for its then, most successful model, the QQ subcompact hatch. Chery quickly moved on from that stage as it slowly upgraded its business: building international talent in order to build a competitive global auto brand. By 2016, Chery stepped  up efforts to improve its capacity for international operation and accelerate the construction of user experience-centered marketing service system, and enhance its capacity for localized operation management through technology resources, brand building resources, talent resources and other resources in the layout of “great Chery”, thus accomplishing collaborative development and common progress.
With all these accomplishments, UAAGI is now able to offer Filipinos with high quality but reasonably priced crossover vehicles laden with technology and other features. UAAGI is confident that the Chery brand would be a formidable addition to the Foton brand it already handles (already one of the top 10 brands in the Philippines by 2020 in terms of sales).
So in November 2019, UAAGI re-introduced the Chery brand through four formidable models—the Tiggo 2, Tiggo 5x, Tiggo 7, and Tiggo 8— in answer to the crossover demand in the country.

2. Chery and Jaguar Land Rover partnership
Established in November 2012, Chery Jaguar Land Rover Automotive Co., Ltd. is a 50:50 independent joint venture formed between Chery Automobile and UK luxury automaker Jaguar Land Rover. Regarded as the country’s first Sino-British premium automotive joint venture, the move would provide a much sought-after production base in a market where global luxury carmakers are reaping benefits from the growing ranks of wealthy Chinese.
The partnership led to the establishment of Chery Jaguar Land Rover’s Changshu Plant that was officially opened and put into production on Oct. 21, 2014. It has an annual production volume of 200,000 vehicles. Changshu Plant, the first full-scale automobile manufacturing facility of Jaguar Land Rover outside the UK, and also the global flagship plant, also led to the establishment of a research and development facility. It is set to develop and manufacture new models, as well as set up engine manufacturing operations and create a sales network in China. Both firms said they wished to “leverage” their respective strengths.
So far, the partnership has produced a number of highly acclaimed models including, Range Rover Evoque, Land Rover Discovery Sport, Jaguar XFL, Jaguar XEL Jaguar E-PACE and The Ingenium family of modular engines.

3. Established worldwide R&D
Chery established a research and development team of more than 5,500 people through five global research and development bases, which led to creating a powerful research and development team researching on engine, transmission, chassis and other core technologies. 
It was this new phase of Chery that United Asia Automotive Group, Inc. (UAAGI) partnered in 2019. By this time, Chery’s insistence on independent innovation had already bearing fruit. 
By this time, Chery already boasts an R&D centers in China, Germany, United States and Brazil. It also has established a global automotive R&D team of more than 5,500 people, thus gradually establishing the holistic technology and product R&D system.

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4. More than 1.7M accumulative export volume
Chery has implemented a globalization strategy since its establishment and has become the first passenger car company in China to export complete vehicles, CKD parts, engines, manufacturing technology and equipment to the global market.
Up to now, Chery has exports in more than 80 countries and regions, establishing more than 1,500 sales and service outlets with more than 1.7 million accumulative export volume, remaining the biggest exporter of passenger vehicles in China for 18 years in a row.

5. Appealing after-sales programs: 
Chery Premium Preserv
Chery Auto Philippines has topnotch after sales warranties that are probably the best in the Philippine automotive market scene.
To build its market here, Chery Auto Philippines is able to give their customers the first-in-the- industry 10-year or 1 million-km engine warranty, a 5-year general warranty, and a free full preventive maintenance service (PMS) for three years which includes and 3-year roadside assistance.