Chery: Aiming for annual sales of 200,000 new energy vehicles, 1 million total units by 2020

Expanding JLR's engine plant, accelerating construction of Chery new energy vehicle plant

2017/09/26

Summary

 Chery Holding Co., Ltd. (Chery Holdings) is a holding company that is headquartered in Wuhu City, Anhui Province. Subsidiaries of the holding company include businesses in segments such as cars, auto parts, ships, real estate, finance, and others. Among these, Chery Automobile Co., Ltd. (Chery Automobile) has concluded separate joint ventures with both Jaguar Land Rover (JLR) and Qoros Automotive Co. Ltd.

   Chery Commercial Vehicles (Anhui) Co., Ltd. (Chery Commercial Vehicles), which mainly handles commercial vehicles, produces and sells the Karry and Cowin brands.

 Chery Automobile, which was established in January 1997, celebrated its 20th anniversary this year. Sales volume of the maker’s flagship QQ model and small cars have increased, contributing to ranking 7th in Chinese domestic market share in 2011. However, unit sales have been declining since 2012 due to a delay in expansion into the popular SUV market. In 2013, the automaker reexamined its brands and recovered unit sales in 2014 by introducing the Tiggo series SUV and the Arrizo series sedan. In 2016, sales of JLR brand vehicles were strong, rising 34.9% year-over-year (y/y) to 699,000 units (numbers based on plant shipments). Sales were steady for the January to July period of 2017 at 358,000 units, recording a y/y increase of 20.2%.

 The OEM set target sales volume for China’s 13th Five-year plan period (2016-2020) at 1 million units, inclusive of the Karry and Cowin brands belonging to Chery Commercial Vehicles. Among these, 200,000 units are to be new energy vehicles (NEVs). The automaker is currently hastening construction of new NEV plants.

 As for overseas expansion, Chery Automobile exports the most passenger cars among Chinese OEMs, reaching more than 80 countries and regions globally in 2016. In 2016 it constructed an assembled vehicle plant (wholly-owned) in Brazil, a first for a Chinese OEM. In addition, in 2017 the Tiggo 7 rolled off the production line at the Iran plant. The world premiere of an SUV adopting the new M3X platform is scheduled for the 2017 Frankfurt Motor Show.

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