Chery Automobile (Part 2): Joint production with Jaguar Land Rover begins

Start of Qoros model production; development of overseas sales network

2014/07/23

Summary

Qoros 3 Hatch
Qoros' second production model: Qoros 3 hatchback
at the 2014 Beijing Auto Show

 Chery Automobile Co., Ltd. has changed its strategy dramatically. It has shifted  its focus from increasing the sales volume of low-priced vehicles to increasing profit with sales of high-quality models. The company is promoting the improvement of its technological capability and management efficiency through the alliance with foreign and Chinese OEMs. In line with these changes in its strategy, the global sales target of the entire group has been revised downward from 750,000 units in 2014 to 1 million in the medium run. This report focuses on Chery Automobile's joint production in China with foreign OEMs and the Chery Group's overseas business.

* Production of Qoros models (Qoros Automotive) begins

  Qoros Automotive Co., Ltd. is a joint-venture  with the Israel-based international investment company, Israel Corporation. Ltd. In December 2013, Qoros Automotive started operations of its plant in Changshu, Jiangsu Province, and began sales in China and Europe.

* To start joint production with Jaguar Land Rover by early 2015

  In November 2012, Chery Automobile won approval for the joint production with Jaguar Land Rover (JLR), which is affiliated with the India-based Tata Motors, and started construction of a plant in Changshu, Jiangsu Province. The plant is scheduled to be completed in July 2014 but production at the plant is expected to begin by the beginning of 2015.

* Seeks possibility for joint production with Subaru

  Chery Automobile's application for the joint production with Fuji Heavy Industries (FHI: the maker of Subaru automobiles)  was rejected by the Chinese government in 2011 but Chery Automobile continues to seek the possibility.

* Full-scale production starts in Brazil

  As part of furthering the sales expansion in the Latin American market, Chery Automobile is scheduled to begin full-scale production of vehicles with an engine plant and a production line for vehicles in Brazil around November 2014.

* Development of export business overseas

  To boost overseas sales, Chery Automobile is currently establishing sales networks in more than 80 countries. In addition, it is currently promoting Complete Knockdown (CKD) production in the countries where it has expanded.

Related reports:
Chery Automobile (Part 1): Strategic shift in own-brand business (Jul. 2014)
Beijing Auto Show 2014: Chery Automobile (Jun. 2014)
Shanghai Motor Show 2013 (2): Chery Automobile (Jun. 2013)
Chery Automobile: moves forward with joint venture projects with foreign partners (May 2012)



A joint-venture for Qoros starts production

Joint production with Israel Corporation

▽Chery Automobile makes an additional investment of CNY 1.7 billion to boost annual production capacity of its Changshu plant to 180,000 units by the beginning of 2016
 Qoros Automotive Co., Ltd. is an equally-owned joint-venture (JV) between Chery Automobile and Israel Corporation. In December 2013, Qoros Automotive started operations of a JV plant in Changshu, Jiangsu Province. The company started production and sales of its first model, the Qoros 3 Sedan. In June 2014, it announced that it would invest CNY 1.7 billion in the expansion of the joint-venture plant in Changshu, Jiangsu Province to additionally introduce SUVs and crossovers. The total investment in the JV plant is worth CNY 3 billion, including the stamping, welding, painting, and assembly lines.
 Chery Automobile will complete the expansion of the plant by the beginning of 2016 to boost the production capacity of the plant from 150,000 units per year in June 2014 to 180,000 units. It also plans to gradually boost the capacity of the plant further to 300,000 units a year and eventually to 450,000 units. In addition, the total site area of the plant will be increased from the current 190,000 square meters to eventually 715,000 square meters.

 

Plan to establish a lineup of passenger cars

  Additionally introduces hatchbacks, crossovers, and SUVs to establish a total lineup of four models in 2016
 In December 2013, Qoros Automotive started production and sales of its first model, the Qoros 3 Sedan. In June 2014, the company has begun trial production of the second model, the Qoros 3 Hatch (hatchback), which is scheduled for launch in the second half of 2014. It will additionally introduce one crossover and one SUV by 2016, preparing a lineup of a total of four models.
  With additional investment of CNY 15.4 billion, Qoros Automotive develops a total lineup of 18 models in the future
 By using Israel Corporation's extensive global connection in Europe and in the international market, and by utilizing leading suppliers and engineering companies, Qoros Automotive is currently pressing ahead with the development of the Qoros vehicles. In addition, the company will make an additional investment of CNY 15.4 billion, preparing a total lineup of 18 types (all models will adopt a modular platform) of passenger cars in the future.
 Currently, Qoros Automotive is developing new passenger car models including crossovers and SUVs. These models are scheduled to be introduced by 2016. The company has R&D centers in Shanghai, Germany, and Austria. It is forming alliances with Magna Steyr, TRW Automotive Holdings, Continental Tire, Bosch,Microsoft, and Iconmobile on the development of the new vehicles and related technology.
▽The Changshu plant also produces models to be exported overseas
 The Changshu plant produces models for China and for export. In June 2014, it is currently exporting the Qoros 3 Sedan to Slovakia in Europe. Qoros Automotive aims to export 10% of the entire production at the Changshu plant in the future. It is reported that the company intends to expand sales of the Qoros models into countries surrounding Slovakia and then into each of the other European countries by 2016.
(Note) 1. In November 2011, Chery Automobile changed the official name of the equally-owned JV company with Israel Corporation from Chery Quantum Auto Co., Ltd. to Qoros Automotive Co., Ltd. At the same time, it announced the brand name, Qoros, for own-brand models.
2. The JV's operating company is located in Shanghai (Shanghai International Financial Center) and is mainly in charge of marketing operations, including market/sales, legal work, engineering and purchasing of parts, and material for production. The operating company has an R&D center in Shanghai, a design center in Germany (Munich), and an engineering research and design center in Austria (Graz).

 

▽Model plan for Qoros

 In June 2014, Qoros Automotive announced its model plan which it would bring to the market: a total of four models by 2016 and a total of 18 models in the future. It plans to adopt a modular platform for all the models. Their classes are A0 to C for models that are marketed in China and B to E for models that are marketed overseas.

 Qoros Automotive has announced a plan to introduce one new model every six to twelve months in the future. It has revealed that it would additionally introduce the Qoros crossover and SUV in 2014 or later.

Model Launch timing Details
Qoros 3 Sedan December 2013
(launched)
 The Qoros 3 Sedan made its world debut at the Geneva Motor Show in March 2013. The model is Qoros' first production model (C-class, four-door sedan, model code: CF11). It has a length of 4,615 mm, width of 1,839 mm, height of 1,445 mm, and a wheelbase of 2,690 mm. The wheelbase is long for a model in the compact segment. The target users are young people who are 25 years old or older and is planning to buy passenger cars for the first time.
 A modular platform was adopted for the model. Its production began in December 2013. The company also plans to market the model in Europe. The selling price starts at CNY 119,900.
 The power system combines a 1.6-liter naturally-aspirated (maximum output of 93kW and maximum torque of 155Nm) or turbocharged (maximum output of 115kW and maximum torque of 210Nm) four-cylinder gasoline engine with Getrag's six-speed MT or six-speed DCT and a start/stop system (STT).
 The Qoros 3 Sedan won a five-star rating by Euro NCAP, demonstrating its high collision safety.
Qoros 3 Hatch June 2014 The model is a hatchback version (five-seat, five-door) of the Qoros 3 Sedan, which made its world debut at the Geneva Motor Show in March 2014. It is the brand's second production model in China, following the first production model  in China, the Qoros 3 Sedan (four-door). The Qoros 3 Hatch is also produced at the plant in Changshu, Jiangsu Province. The standard selling price ranges from CNY 119,900 to CNY 171,900.
 The Qoros 3 Hatch shares the CF1X modular platform of the Qoros 3 Sedan. The model is 4,438 mm in length, which is 177 mm shorter than the Qoros 3 Sedan. It is equipped with an ABS+EBD, ESC, TCS, BA, CBC, and LED daylight. The fuel efficiency per 100 km is 6.1, 6.3, and 6.5L, respectively.
 The Qoros 3 Hatch shares the power system of the Qoros 3 Sedan, combining a 1.6-liter (maximum output of 93kW and maximum torque of 155Nm) or 1.6-liter turbocharged engine (maximum output of 115kW and maximum torque of 210Nm) with a six-speed MT or six-speed DCT.
 It is reported that a wagon version will also be launched simultaneously when the hatchback is launched.
Qoros Crossover 2015 or later  The Qoros Crossover is the brand's first crossover model. The model shares the CF1X platform of the Qoros 3 Sedan/Hatch. The company plans to produce the model on the same upgraded line at the Changshu plant simultaneously with the Qoros 3 sedan and hatch.
Qoros SUV (-2016)  The Qoros SUV is the brand's first SUV model. The Qoros SUV shares the platform of the Qoros 3 Sedan/Hatch. The company plans to produce the model on the same upgraded line at the Changshu plant simultaneously with other Qoros models.
Qoros EV n.a.  The Qoros EV is Qoros' first EV model.

 

 



Joint production with Jaguar Land Rover

 Jaguar Land Rover (JLR) aims to gain approximately 50% of the group's total profit from its business in China, including imported cars. JLR targets to sell 150,000 units in China in 2015. It plans to gradually localize production of the models that are currently imported and sold and popular in China. The company will start local production at its JV  plant in Changshu, Jiangsu Province by the beginning of 2015. JLR announced that it had sold approximately 434,000 units worldwide in the fiscal year ended in March 2014, including approximately 103,000 units, which is up about 34% year-on-year (y/y), in China.

 

Chery JLR, Chery's passenger car production company with JLR: may start operations/production in 2014

 Chery Jaguar Land Rover Automotive Co., Ltd. (Chery JLR) is a JV production company between Chery Automobile and Jaguar Land Rover China (JLR China). Construction of its JV plant in Changshu city (Economic Technology Development Zone), Jiangsu Province is scheduled to be completed in July 2014. Production will start at the beginning of 2015 (in November 2014 at the earliest).
 The JV plant produces models under these three brands: Jaguar, Land Rover, and the JV's own brand in China. When operations start, the initial production capacity in the first-stage construction will be 130,000 units a year (beginning with 50,000-80,000 units), and will be increased to 250,000 units in the future. Out of the initial 130,000 units, 34,000 units will be the Range Rover Evoque, 43,000 units will be the Freelander third-generation, 30,000 units will be the Jaguar models (including the XF), and 23,000 units will be the models under Chery JLR's own brand.
 Construction of the plant, which also has an engine plant and an R&D center, began in November 2012. The total investment is worth CNY 10.9 billion (USD 1.76 billion). The two companies each provides half the capital.

* Note: The full name of JLR China is called JLR Automobile Trading (Shanghai) Co., Ltd. It is mainly in charge of JLR's sales of imported cars and has no management function.

 Earlier, in May 2014, it was reported that the Changshu JV plant had started trial production of its first locally-produced model, the Range Rover Evoque.
 At the Changshu plant, there are production plans for the Range Rover's Freelander third-generation (the standard price of the second-generation model imported is CNY 388,000-CNY 658,000), Jaguar models (the Jaguar XF [the standard price of the imported model is CNY550,000-CNY 768,000] is a likely candidate), and models under the JV's own brand.
 In order to wipe out the Chinese users' concerns that the quality of locally produced models is worse than that of imported models, JLR China will introduce a global purchasing system that is similar to that of the imported cars to the purchasing of components for locally-produced models. In 2013, sales of the imported models in China increased by 29.8% y/y to 95,237 units (73,347 units in 2012). Among them, sales of the Jaguar models almost doubled, while those of the Land Rover grew by 17%.
▽Plan to construct an engine plant near the Changshu vehicle plant
 Around June 2014, Chery JLR started construction of an engine plant that is annexed to the vehicle plant. This is the first time for JLR to construct an engine plant outside the U.K. The new plant has a production capacity of 130,000 units a year. Operations will start by the end of 2015. The plant will gradually begin production of the Jaguar's 2.0-liter new Ingenium four-cylinder turbo engine and then the Chery Automobile's 1.6-liter (maximum output of 136kW) or 2.0-liter (maximum output of 144kW and maximum torque of 290Nm) direct-injection turbo engine.

 

Chery JLR and JLR to jointly establish a sales company for passenger cars

 In May 2014, Chery JLR and JLR announced that they were currently planning to establish a JV that supervises sales of the locally built JLR models and sales of the imported JLR models in China. The JV's tentative name is Chery JLR Automobile Sales Co., Ltd. Its affiliated sales agencies plan to sell both the locally built JLR models and imported models at the same time.
 Before this announcement, in May 2014, the two companies established an organization for the management of sales operations, including marketing and after-sales services in China: Integrated Marketing Sales and Service Organisation (IMSS). This organization does not have qualification as an independent corporation and is established based on Chery JLR and JLR China, and the existing marketing and after-sales service divisions of each company as its founding body. IMSS is in charge of marketing, sales, and after-sales services for the business of Jaguar, Land Rover, and the joint-venture brand with Chery Automobile. It will also be in charge of management and administration.
 The organization has three affiliated committees.
  (1) Strategic committee: decision-making for quarterly/fiscal sales target, fiscal budget, and selling price
  (2) Management committee: decision on concrete sales activities and marketing activities
  (3) Network committee: in charge of planning and development of decision-making system and decision on the certification of dealers
 According to a report, concerning profit-sharing, the profit from sales of imported cars still belongs to JLR China (JLR). The profit from sales of locally built vehicles is expected to be shared equally among Chery Automobile and JLR. There are also contradictory reports stating that Chery Automobile and JLR is currently planning to establish a sales company or that they will not establish a sales company.
 In May 2014, JLR China provided licenses to 250 sales agencies and it is reported that all the sales agencies plan to start operations by 2015. Sales of imported JLR models in China were 29,500 units in the first quarter of 2014 (up 36% y/y). JLR China employed more than 200 workers in May 2014. However, the number of Chery JLR's employees was one-tenth of that of JLR China, or more than 20.

 

Model plan at the Changshu JV plant: First locally built model is to be unveiled at the 2014 Guangzhou Motor Show

 Chery JLR will unveil its first locally builtLand Rover model, the Range Rover Evoque, at the Guangzhou Motor Show that is scheduled to be held in November 2014. The model is built on the LR-MS platform and comes with a 2.0-liter turbo engine. Through local production, the selling price is expected to be lowered to CNY 400,000 or less.
 The company also plans to additionally build the Land Rover Freelander and a model under the JV's own brand at the Changshu plant. The first model of the JV's own brand is reported to be an SUV.

 

Chery JLR's model plan

Model Launch timing

Details
Jaguar XF
long wheelbase
2014  The Jaguar XF long wheelbase (300 mm longer than that of the standard model) is the first Jaguar model that is produced at the Changshu plant. The model is ranked first in the 2013 sales volume of imported Jaguar models in China. The standard price of the imported model is CNY 550,000-CNY 680,000.
 By 2015, the Ford 2.0-liter/(S-type) 3.0-liter turbo engine will be featured.
 Jaguar's first sports wagon, the Jaguar XF Sportbrake, was unveiled at the 2014 Beijing Motor Show.
Jaguar XS n.a.  The Jaguar XS is a model that is likely to be built at the Changshu plant.
Land Rover
Range Rover Evoque
2nd half of 2014  The Range Rover Evoque is the first Land Rover model that is produced at the Changshu joint-venture plant (product code: LRX). It is scheduled to be launched in the second half of 2014. The selling price of the locally-produced model is CNY 100,000, which is lower than that of the same model that is currently imported.
 In June 2014, the standard price of the imported model in China is CNY 528,000-988,900 but a discount campaign of a maximum of CNY 100,000 is being run.
Land Rover
Freelander
third-generation
2015  The Land Rover Freelander third-generation is the second Land Rover model (SUV) that is likely to be produced at the Changshu JV plant. The model is currently being tested on a public road in Europe in June 2014.
JLR-Chery
joint-venture brand model
(official name undecided)
2015  This will be Chery JLR's first model under the JV's own brand. The model will be developed based on the LR platform of the current Freelander second-generation. The standard selling price is planned to be around CNY 250,000.
 It comes with a 2.0-liter turbo TGDI "SQR484J"Chery Automobile engine and a six-speed MT.

 

Chery Automobile is negotiating on the sellout of its former models and platforms to Tata Motors

 In March 2014, Chery Automobile announced that it is currently negotiating with India-based Tata Motors, which belongs to the JLR Group, on the sellout of Chery Automobile's former models and platforms to Tata. The former models are reported to be the first Chery QQ, Chery A1, Chery M1, and Chery A3 (compact car).

 

 



Joint venture with Fuji Heavy Industries (Subaru)

 In June 2014, Fuji Heavy Industries Ltd. (FHI) revealed that it resubmitted an application for establishing a local JV  with a major Chinese automaker to jointly produce the Subaru-brand passenger cars. The application is still under examination (according to an independent survey conducted by MarkLines). Although the location of a JV plant and other details have not been disclosed, Chery Automobile is considered very likely to be the business partner. In this context, there is a report that a planned plant site for building the Subaru models is being prepared in the Dalian plant of Chery Automobile.

 FHI has in the past applied to the examination authority of China (the National Development and Reform Commission) for a permit to jointly produce Subaru-brand cars with Chery Automobile in China in June 2011. However, the application was rejected in September of the same year.

Fuji Heavy Industries' activities in imported car sales in China

 In May 2014, FHI announced its mid-term management vision "Prominence 2020" (up to March 2021) in which it describes its vehicle sales plan in China. In the plan, the automaker sets the target of selling 60,000 units in the fiscal year ending in March 2015. FHI further plans to double the 2015 target to 120,000 units in the fiscal year ending in March 2021. FHI's sales targets for China that was revised in 2013 showed 70,000 units for FY2013, 80,000 units for FY2014, and 100,000 units for FY2015 (the actual results for the term ending in December 2013 were 57,000 units).
 In January 2013, FHI's wholly owned sales company, Subaru of China, Ltd. (SOC), which sold Subaru cars in China, was turned into a JV after receiving a 40% capital injection from Pangda Automobile Trade Co., Ltd. Pangda Automobile Trade is a leading car dealer that sells many brand models in the country.
 Taking advantage of the Chinese company's know-how together with hiring more workers and reinforcing the organization, FHI will increase the number of "4S" dealerships from 182 at the beginning of 2013 to 250 by the end of 2015 (some reports say 200 by March 2016). In addition to this, FHI plans to increase the number of the so-called "2S"and "3S" dealerships by 30 to 50 in small and medium cities by the end of 2015.
 Li Jinyong, Deputy General Manager of FHI's sales company in China, however, told in an interview with a major Chinese press in June 2014 that FHI, for the time being, needed to address problems such as dealing with the shortage of supply of parts and accessories as well as distribution relay stations in advance to further expand its sales activities in China. He also pointed out the necessity of arranging basic training for salespersons in its dealerships.

 

 



To begin Chery brand production at assembly and engine plants by early 2015

 Chery Automobile made inroads into the Brazilian market in 2009 by selling its imported cars. Since then, the automaker has successively introduced such models as the Face (Chery A1), S18 (Chery M1), Cielo (Chery A3), Tiggo 3, and the first-generation QQ, a once popular local model, into the market. In March 2013, the Celer, which is the Brazilian version of the Fulwin 2 (A13), was additionally imported and released.

 According to the Brazilian automobile dealers association (FENABRAVE), Chery Automobile's vehicle sales in Brazil was 8,365 units in 2013 and 4,479 units in the first half of 2014. Chery Brasil experienced substantial y/y decreases in sales volume from late 2012 to 2013 due to the change of its sales agent license in 2012.

 Note: The Celer carries a 1.5-liter flex engine. Its features include airbags, EPS, ABS+EBD, and air conditioner.

 

Completely knocked-down assembly plant to begin operations from July 2014

 In February 2014, Chery Automobile revealed that the construction of a completely knocked-down (CKD) assembly plant was completed. The plant is located in the city of Jacarei, Sao Paulo in Brazil. The CKD production of vehicles will start as early as July 2014 (six months ahead of schedule). The total investment in the two phases of the construction amounts to USD 400 million. The construction began in July 2012.
 USD 140 million was invested in the first phase of the construction (with a floor area of 150,000 square meters). The plant has painting, welding, and assembly facilities with an annual production capacity of 50,000 units (two-shifts). Each of the facilities has one production line. USD 260 million will be additionally invested in the second phase of the construction, which will last until 2016. With one press line to be added, the annual production capacity will be expanded to a maximum of 150,000 units (three-shifts).
 It was reported in February 2013 that Chery Automobile would hire laid-off workers from General Motors do Brasil at its CKD assembly plant, which is under construction in Brazil. GM do Brasil was planning to cut personnel at its Sao Jose dos Campos plant. Although the subsequent progress has not been revealed, the number of employees at the CKD assembly plant is scheduled to be increased to around 3,000.
▽Engine plant also under construction, slated to begin operations in early 2015
 In December 2013, Chery Automobile announced that it would construct an engine plant in Jacarei, Sao Paulo in Brazil, South America. The total investment amounts to USD 130 million. The location is five miles away from the "Jacarei Plant, Chery Brasil" (tentative name), which is the knocked-down (KD) assembly plant for passenger cars that is under construction. The plant is slated to begin operations by January 2015.
 Chery Automobile will mainly produce 1.0-liter or 1.5-liter gasoline engines that it developed. The company will start operations with 150 employees. It plans to eventually increase the workforce to around 800. In addition, Chery Automobile will tie up with a local engine manufacturer in developing engines and will build its own continuously variable transmission "CVT 18".

 

Chery Automobile's plan for models built in Brazil

 In July 2014, the automaker will start production and sales of the plant's first model, Chery Celer, which is the Brazilian version of the Fulwin 2 (A13). It will carry a gasoline- or alcohol-fuel engine. In 2015 (October 2014 at the earliest) the automaker will additionally introduce the new local QQ series, comprising the QQ3 2box and the QQ6 3box. It will carry a 1.0-liter, 3-cylinder gasoline engine. A model that is equipped with a CVT that is manufactured by the company will also be available. It will have a leather‐wrapped steering wheel with four airbags and be available in 20 colors. There are, however, reports that the model to be introduced in 2015 may be the Chery S12 (A1) or the Chery S15, which is an alternative of the QQ.
 Chery Automobile postponed the launch date of the Chery S-18 EV and the Cielo 2/3box 1.5-liter, which the company had planned to import and sell from around June 2014 in Brazil. In January 2014, Chery Automobile started selling its imported Tiggo, which is made in Uruguay.

 

 



To further expand export and sales in over 80 countries

 As of July 3, 2014, Chery Automobile operates CKD or semi knockdown (SKD) assembly plants in a total of 16 locations, excluding China. These locations include Russia, Ukraine, Egypt, Iran, Indonesia, Myanmar, Venezuela, and Uruguay, and primarily in Asian, European, African, and North and South American regions.

 In addition, Chery Automobile, as of July 2014, operates 1,100 dealers and 900 service locations overseas for its own brands as well as the foreign brand, Qoros. The number of nations where completed vehicles are sold has exceeded 80 (some reports say that the number of nations exceeded 100).

 Chery Automobile set its 2014 sales target for models that are built locally and outside of China to 190,000 units (excluding cars exported from China). The actual result of the reported 2013 sales was, however, only 80,000 units. Meanwhile, in around 2013, Chery Automobile announced that it would aim to achieve 400,000 units in 2015 in its gross overseas sales, including exports from China. The cumulative amount of export sales volume up to the end of 2012 represented over 800,000 units. The automaker plans to release 17 fully or partially redesigned models (for nine fragmented markets that are covered by the A, B, C, and D classes), including SUVs and MPVs, in overseas markets during 2013-2016.

Main countries and regions where Chery/Qoros brand models are sold

Location Countries or regions in which Chery Automobile made inroads
Latin America  Argentina, Brazil, Chile, Colombia, Uruguay, Peru, Ecuador, and Venezuela
Europe/Central and Eastern Europe  Austria, Belgium, Bulgaria, Czech, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Poland, Portugal, Norway, Romania, Slovakia, Sweden, Spain, Switzerland, the Netherlands, the United Kingdom, Estonia, Ukraine, Luxembourg, Russia, Slovenia, Lithuania, Latvia, and Turkey
Asia Pacific  Taiwan, Indonesia, Malaysia, Thailand, Australia, Vietnam, and Myanmar
Middle East/Africa  Iran, Egypt, South Africa, and Syria

Note: Data in the table are as of June 2014.

 

Exports of China-made Chery brand passenger cars by model

Model type Model Export volume (unit)
2010 2011 2012 2013 Jan.-Apr.
2013
Jan.-Apr.
2014
Total (export) 91,436 155,305 181,890 130,136 46,234 45,744
Export of
passenger car
Sedan/
Hatchback
Cowin 1 607 528 299 360 360 0
Cowin 2 10,042 1,647 3,553 1,547 737 202
Cowin 3 13,857 9,634 15,229 2,952 552 4,800
Cowin 5 0 0 1 0 0 0
Fulwin 1,361 14,424 31,489 23,595 9,314 5,983
Eastar 299 277 133 196 0 160
Chery A1 12,568 16,714 14,882 9,471 3,505 4,040
Chery A3 7,741 9,963 6,309 6,307 846 1,366
B12 0 1 1 1 0 0
B16 0 0 1 30 0 0
Riich M1 2,412 2,696 149 0 0 0
Riich G5 - 8 104 14 - -
QQ3 17,446 43,755 44,560 28,851 12,986 11,995
QQme 5 50 0 0 0 0
★New QQ 0 0 0 0 0 40
★Arrizo 7 0 0 0 4 0 11
★E5 0 3 656 2,302 885 1,340
SUV ★Tiggo 5 - - - - - 16
Tiggo 3/DR 20,860 43,377 53,449 39,993 13,260 10,747
Riich M1small-type SUV 78 4,852 8,631 9,091 1,202 3,886
X5 0 1 0 0 0 0
MPV Karry Youya/Youyi 615 4,447 700 2,019 841 657
Rely V5 3,502 2,900 645 840 565 1
Minivan Karry Yo-yo 43 28 1,099 2,563 1,181 500

Note. Models in bold letters with ★ represent Chery Automobile's new next-generation strategic vehicles that have recently been mass-produced and launched.

 

To construct passenger car plant in the Philippine to export to other Asian nations

 In April 2014, Chery Motors Philippines, Chery Automobile's exclusive local sales dealer in the Philippines, revealed the automaker's plan to build a passenger car plant in the Philippines, which is the third foothold of the automaker in Asia (according to the local newspaper, Business Mirror). The total investment is projected to be several hundred million U.S. dollars.
 Specifically, Chery Automobile will invest USD 100 million in the first phase, and construct a CKD assembly plant. Produced vehicles will be exported to other Asian nations as well. In the second phase, the company will invest PHP 30 billion (CNY 4.16 billion or USD 670 million) and construct a full-fledged plant. However, the start date of the construction, local production models, and other details have not been disclosed.
▽Started selling imported cars in the Philippines in September 2013
 In September 2013, Chery Automobile made its way into the Philippines and started the import and sales of the Chery-brand passenger cars that were built at plants in Indonesia and Malaysia. In March 2014, Chery Motors Philippines added a total of five imported Chery brand models, which are the QQ, E5, Tiggo SUV, Fulwin 2, and Q22L, for sale in the country. The initial sales target for the country is 5,000 units per year.
 As of April 2014, the automaker invested a total of PHP 200 million (CNY 27.59 million) to develop its sales network in the country. It is reported that the automaker plans to increase the number of dealers from five in April 2014 to 10 by the end of 2014 and to 25 in the future.

 

Expanding sales in southern part of Australia, establishing new dealers in South Australia

 In April 2014, Chery Automobile started an imported-car business in the state of South Australia in the southern part of Australia. The automaker will soon establish a total of five dealers in South Australia; two in Adelaide city, which is the state capital of South Australia, and one each in three other cities in the state. It also has a plan to further increase the total number of dealers to 10 in the state after this. The company will go in business with the local partner, Ateco.
 South Australia is located in the same southern part of Australia as the state of Victoria where Chery Automobile's sales territory exists. As of April 2014, Chery Automobile operated a total of five dealers in Melbourne city, Victoria and began operations of dealers in three other cities in the state. The automaker will establish an additional three dealers in the state and increase the total number of dealers to 11 by July 2014.
 In April 2014, the automaker released the partially redesigned compact SUV "J11" in Australia. The model includes Electronic Stability Control (ESC), which is mandatory in Victoria as standard equipment. In addition, as of June 2014, the "J3" hatchback was released. The local version of the Arrizo 7 "J4" is slated for launch by December 2014.

 

Tie-up consultation with Tata with licensing in India in view

 In March 2014, Chery Automobile conducted a consultation with the Indian carmaker Tata Motors, which is the parent company of Jaguar Land Rover (JLR), to study the feasibility of forming a new partnership. Although the details have not been disclosed, foreign medias reported that the two companies discussed the sale of Chery Automobile's discontinued models (e.g., the Chery A1, Chery A3, Riich M1, and first-generation QQ) to Tata Motors or licensed production and marketing of these discontinued models in India.
 In connection with this, Chery Automobile began a local adaptation test with a sample model of the company's strategic SUV "Tiggo 5" in March 2014 to start the import and sales of the Tiggo 5 in India by the end of 2014.

 

To add production of new Tiggo SUV and Chery E5 at ZAZ plant in Ukraine

 In February 2014, Chery Automobile signed an agreement with its Ukrainian partner ZAZ, which is a subsidiary of UkrAuto, on the additional local production of two new models. The two models are the Chery E5 and the Tiggo. However, the start date, size of production, and other details have not been disclosed.
 In addition to the Chery brands, ZAZ builds the GM-affiliated Opel and Chevrolet models and Korean Kia models. With all these combined, ZAZ built about 40,600 units in 2012 and aims at 120,000 units in 2015.

 

 



(Reference) Sales volume of Chery's own brand models built in China

 

Chery Automobile Group's sales volume of Chinese-made models by vehicle type and by model (on factory-shipment basis, including exports)

▽ Sales volume of Chery brand completed vehicles by model (including former Riich, Rely, and Karry brands)
Type Models Chinese-made model sales, including exports
(unit, on factory-shipment basis)
2010 2011 2012 2013 Jan.-Apr.
2013
Jan.-Apr.
2014
Total
(Chinese-made Chery brand models)
682,060 641,715 563,305 469,390 179,570 145,000
Passenger car total 674,774 634,311 550,203 453,918 173,479 138,643
Commercial vehicle total 7,286 7,404 13,102 15,472 6,091 6,357
  ▼Breakdown (1): Sales of Chery brand models in China
Passenger
car
Sedan,
hatch
Cowin 1 29,861 30,672 15,415 7,515 5,466 34
Cowin 2 68,930 54,956 32,873 22,539 9,729 3,620
Cowin 3 74,679 42,187 19,129 4,631 2,163 4,802
Cowin 5 - - 1,177 77 36 0
Fulwin 3box 1.5L 33,504 28,736 22,520 14,827 6,921 2,601
Fulwin 2box 1.5L 40,501 54,051 57,255 55,558 19,316 9,496
Eastar
1.8/1.9/2.0/2.4L
2,850 1,261 356 585 64 164
QQ3 (0.8/1.0/1.1L,EV),
or QQme
152,008 150,871 143,806 116,932 49729 22,534
A1 16,039 20,257 18,111 9,773 3,507 4,040
A3 3box
1.6/1.8/2.0L
34,436 23,424 10,495 7,443 2,751 1,206
A3 2box
1.6/2.0L
24,056 15,791 7,333 2,403 1,100 171
A22
1.3/1.6/1.8L
- 1,246 12,085 796 680 301
B12 - 153 390 283 121 25
B16 - - 798 292 262 0
Riich M1 2/3box 22,848 8,436 814 225 111 107
Riich G5 2,391 2,103 1,241 513 289 8
★E5 1.5/1.8L - 34,691 62,847 48,180 26,408 5,281
★Arrizo 7 - - 0 10,498 0 9,144
★E3 - - 0 30,921 0 23,168
★New QQ - - 0 0 0 1,099
Total 502,103 468,835 406,645 333,991 128,653 87,801
SUV ★Tiggo 5 - - 0 4,397 0 24,208
Tiggo 3/DR 65,062 99,338 104,013 73,790 30,134 14,067
Riich M Small-type SUV 18,006 14,596 13,506 10,298 2,120 3,897
X5 - 2,043 734 433 76 13
Total 118,253 88,918 32,330 42,185
MPV Rely V5
1.8/1.9/2.0/2.4L
11,459 5,475 1,993 1,181 701 6
Karry Youya/Youyi 20,172 10,445 3,583 6,672 1,461 2,393
Total 5,576 7,853 2,162 2,399
Minivan Karry Youpai 57,972 33,579 66 0 - -
Karry Yo-yo 15,841 20,350 8,952 5,815
Karry Yousheng 2,764 1,516 449 244
Karry Yousheng second-generation 1,058 1,290 933 199
Total 57,972 33,579 19,729 23,156 10,334 6,258
Commercial vehicle
(only small type)
Mini truck 7,286 5,719 11,607 15,018 5,986 5,979
Light bus 0 1,685 1,495 454 105 378
(Notes) 1. Models in bold letters with ★ represent Chery Automobile's new next-generation strategic vehicles that have recently been mass-produced and launched.
2. The former Riich and Rely brand model names are under revision.
3. Chery Automobile's EV sales volume in 2013 was 5,943 units (production was 6,017 units). The vehicles that are commercially sold are mainly the Chery QQ3 EV (registered car number is SQR7000EAS11).

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