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Chinese automobile manufacturing company

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This article is about the Chinese automaker. For other uses, see Chery (disambiguation)

Not to be confused with Chevy or Cherry

Chery Automobile Co. Ltd., trading as Chery (Chinese: &#;&#;; pinyin: Qíruì),[3] is a Chinese automobile manufacturer with its headquarters in Wuhu, Anhui, China; it is owned by the Wuhu municipal government. Founded in , it is currently the fifth largest automobile manufacturer group in China with 1,881,316 vehicles sold in .[4][5]

Chery was founded in by government officials of Wuhu City, who appointed Yin Tongyue, the current chairman, as the company's first technical director. Chery launched its first car called the Fengyun in , using a licensed SEAT chassis. During its early years, Chery utilized technologies from other manufacturers; some were licensed and others were acquired by reverse engineering. This practice led to a lawsuit in filed by General Motors alleging that Chery had copied the design of one of its cars. Chery has since developed and improved its technologies. Since , Chery has produced its engines branded as ACTECO, which it also sells to other manufacturers.[6]

The company started exporting cars from China in , ahead of other Chinese manufacturers and has been the top exporter of Chinese brand passenger vehicles since . The company exported 269,154 vehicles in , 451,337 vehicles in , and 937,148 vehicles in , accounting for 52 percent of its overall sales.[7][8] Chery invests more heavily in overseas markets than other Chinese manufacturers, and many of its vehicles are assembled outside China using complete or semi-complete knock-down kits. In , Chery Holding Group made its debut on the Fortune Global 500 list, securing the 385th position with a revenue of $39. billion.[9][10]

Chery adopts a multi-brand strategy by establishing many car brands for different purposes. As of , the company has eight active brands, including the main Chery brand (with Chery Fulwin and Chery New Energy sub-brands for plug-in hybrid and electric cars respectively), Exeed for premium vehicles, Luxeed as a collaborative electric car brand with Huawei, Jetour that focuses on SUVs, iCar for electric SUVs, Karry for commercial vehicles, and Omoda, Jaecoo and Exlantix for export markets. The company also operates a joint venture with JLR since called Chery Jaguar Land Rover for the production of Jaguar and Land Rover vehicles in China.

Name

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Chery logo used before

Chery logo used from until , still used in some overseas markets

Yin Tongyue, a technical director proposed the name Qirui (Chinese: &#;&#;) in , which means 'unexpected and auspicious'. Later, this name was romanized as Chery (initially Cheery during the brand launch). Other proposed names include Jiuhua (Chinese: &#;&#;) after the local Mount Jiuhua area, but the name was rejected by the Chinese industrial and commercial department because it was stipulated that trademarks cannot be registered with place names.[11]

History

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Early years

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Chery chairman, Yin Tongyue in

Chery was founded on 8 January as a state-owned enterprise by a group of officials from Wuhu city in Anhui province. The city officials appointed Yin Tongyue, the current Chery chairman, as the company's technical director in . Yin is from Anhui, and at that time was a manager in FAW, holding a position as a workshop director for the FAW-Volkswagen joint venture. The car project was formally incorporated on 18 March as Anhui Auto Parts Co., Ltd., with substantial funding from the Anhui provincial government, amounting to millions of yuan. The plan was to set up an engine production line and creating a components industry, before initiating car manufacturing operations.[12]

Chery began automobile production in using a SEAT Toledo chassis licensed from Spanish manufacturer SEAT.[13][14] Called the Fengyun, Chery's first car sold nearly 30,000 units.[13] By , Chery's production and sales exceeded 50,000 units, ranking among the "top eight" in the domestic passenger car industry.[15] However, the company was only awarded a national passenger car production license in ,[16] so while its first product rolled off the line in December , it could not be legally sold outside the Anhui province for several years.[13] During that period, Chery solved the problem by piggybacking on a SAIC Motor license until . In this period, SAIC held a 20 percent share in Chery.[16] Ownership was soon sold due to rising tensions between Chery and another SAIC partner General Motors, and political pressure from the SAIC management towards Anhui authorities.[12][17]

Expansion period

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In May , Chery launched its smallest car, the QQ, which became popular due to its design and affordability. Despite its successful sales, it also received quality and durability complaints from owners.[11] In June , American manufacturer General Motors (GM) filed a widely publicized lawsuit against Chery, alleging that the design of the QQ copied the first-generation Daewoo Matiz, a vehicle developed by GM Daewoo. In late , the lawsuit was settled out of court.[18] GM was not the only manufacturer to have been exasperated with Chery; Volkswagen planned to file a lawsuit against Chery regarding the secret side deals it engaged with VW parts suppliers to produce the Chery Fengyun that resembled the Volkswagen Jetta.[19] Volkswagen agreed to abstain from a planned lawsuit after Chery offered financial settlement out of court.[20] These entrepreneurial risk-taking led The Wall Street Journal in to describe Chery's corporate culture as "an odd hybrid of Communist state enterprise and entrepreneurial start-up".[13]

In December , Chery entered an importation agreement with American company Visionary Vehicles, laying the groundwork to introduce five Chery models to US and Canada.[21][22] Visionary Vehicles was owned by Malcolm Bricklin, widely known as the entrepreneur who brought Yugo cars to the US. Both companies hoped to sell 150,000 vehicles in the US by . Investments were made to ensure compliance with safety regulations, and a dealership network was established across North America. Allegations of breach of contract by Chery and the legal disputes that followed in disrupted the collaboration between both companies, and Visionary Vehicles ended up winning a lawsuit it brought against Chery in to recoup losses from the failed deal.[23][24]

Chery started improving its engineering capabilities,[11] and launching other new products such as the Tiggo SUV and other models.[15] In , Chery started buying 1.4-litre Tritec petrol engines produced in Brazil and jointly developed by BMW and Chrysler.[11] In , the company used a Mitsubishi Motors engine for the Tiggo, which was widely used in the Chinese car industry at that time.[11] Chery started producing its own engine branded as ACTECO since .[6] It is the result of a technical cooperation dating from with AVL, an Austrian engineering company.[25] Starting , Chery supplied ACTECO engines to Fiat, which used the 1.6- and 1.8-liter engines for the Fiat Linea.[26][27]

The A3, introduced in August , became a turning point of the brand. The sedan was styled by Pininfarina, and became the first Chinese-developed car to receive a 5-star rating in the China NCAP safety test.[28]

In , Chery produced 508,500 units,[29] and at that time, it had an annual production capacity around 650,000 units.[30] More than 400,000 of its sales were sedans.[31] In that year, Yin Tongyue announced changes to the company's strategy to become a multi-brand carmaker by introducing three new brands: Karry, Rely, and Riich. Chery also renamed all its cars to Cowin followed by a number, except for the E5, QQ, and Tiggo. It also introduced the Fengyun 2 to replace the SEAT-based sedan. These changes are aimed to eliminate the low-budget image of Chery cars.[32] Later its sprawling production policy and lineup became a problem for Chery. With over 100 new models in the works, Chery decided to cancel the Rely and Riich brands in the fall of . Since then, Chery has entered an adjustment period of "returning to one Chery", and reduced its planned models to around 30.[33]

Chery became the seventh-most productive Chinese vehicle manufacturer in by selling nearly 700,000 units.[34] Slipping sales marked and ; in these years, the company produced more than 640,000 and near 590,000 units, respectively, and it moved from a seventh to a tenth-place ranking.[35] The company in exported around 25% of its total production.[36] In , Chery built its first fully-owned manufacturing plant outside of China, located in Jacareí, Brazil. It went operational in .[37]

Since the late s period, Chery also began to actively seek a partnership with foreign carmakers. Several possible tie-ups with both Chrysler and Fiat were explored, but fell through.[38][39] In mid-, the company signed an agreement with Fuji Heavy Industries (currently Subaru Corporation) to establish a manufacturing joint venture in China, with a production site planned in Dalian, Liaoning. The planned joint venture failed to receive an approval from the Chinese government despite multiple attempts.[40][41] Chery started partnering with Jaguar Land Rover (JLR) in March , which was looking to produce cars in China through a mandatory 50-50 joint venturer with a local company.[42] The joint venture was formalised as Chery Jaguar Land Rover in November .[43] Its first product, a Range Rover Evoque, rolled off the production line in October from the newly built plant in Changshu, Jiangsu.[44] Chery also began manufacturing a revived version of the Moke under an agreement with JLR since . Its design evokes the classic Mini Moke built from until .[45]

Chery was also involved with the establishment of Qoros, a joint venture formed in with Kenon Holdings based in Singapore and owned by Israeli investors, and started selling the Qoros 3 sedan in . Qoros was sold off in , and faced bankruptcy in .[46]

In , Chery revived its multi-brand strategy by establishing Cowin as a separate brand, which is positioned as a low-budget offering. The brand was partially sold in .[32] Another brand that was established by Chery is Exeed, which is positioned in the premium segment. The brand was introduced in September at the International Motor Show Germany in Frankfurt by showcasing the TX concept vehicle.[47] The first production model from Exeed was the Exeed TX/TXL mid-size SUV in March .[48] In January , Chery introduced another brand called Jetour at an event in Beijing, which focuses on "value for money" mid-size SUVs and targets Chinese families living in tier-three and tier-four cities who travel often.[49]

Chery eQ1, the best-selling EV from Chery since its inception

Chery started early in producing electric vehicles (EVs) by introducing its first EV in , which is an electrified version of the original Chery QQ. The company established an EV division called Chery New Energy in .[50] Following this, Chery released the Chery eQ in , an EV variant of the second-generation QQ, and later launched the eQ1 in .[46] The eQ1 went on sale in , and became one of the most popular electric car in China until , when rivals such as the Wuling Hongguang Mini EV became available.[51] In June , Chery produced its 200,000th eQ1.[52]

Rapid growth period

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Chery attempted to enter the US for the second time in February ,[53] when the company struck a deal with a California-based dealership group HAAH Automotive to sell Exeed and Chery Tiggo models in the country by . The vehicles were planned be rebranded as Vantas and T-GO respectively, and would be assembled at an American plant using both domestic and imported parts.[54] The plans were cancelled in mid- as HAAH filed for bankruptcy.[55]

In , Chery announced the "Double 50" strategic plan that aimed to export 500,000 vehicles and to achieve an export revenue of US $5 billion by .[56] The company ended up surpassing the plan by a large margin by exporting 937,148 vehicles in .[8]

The company started entering or reentering markets in this period. Chery resumed operations in South Africa in late after years of absence.[57] In , Chery entered the Mexican market as Chirey due to trademark reasons, as Malcolm Bricklin held the rights for the Chery name in North America.[58] Other markets entered in included Malaysia, Indonesia, and Turkey.[59][60][61] Chery re-entered the Australian market in , after briefly selling cars there in the early s.[62] Its Exeed brand started sales in the Middle East in .[63][64]

In , Chery launched four new brands and several new product lines. In April, it launched a new brand called iCar which mainly sells electric SUVs that targets young customers, and the Sterra electric product line (Exlantix for export markets) under its Exeed brand. The company also started a partnership Huawei under the Harmony Intelligent Mobility Alliance (HIMA), where Chery supplied HIMA with electric vehicles under the new Luxeed brand. Luxeed's first product is the Luxeed S7, which is the first car to have the Harmony OS 4 on board.[65][66]

Omoda and Jaecoo global brand launch in Wuhu, Anhui

In April , Chery also launched another two new brands in a ceremony held in Wuhu, Anhui called Omoda and Jaecoo. Both brands are only marketed outside China to support Chery's export strategy. The two brands combined (referred to as "O&J" brands) were targeted to reach annual global sales of 1,400,000 units by (not including China).[67][68] Also in , Chery also announced its new high-performance plug-in hybrid platform marketed as "Chery Dual Mode" (C-DM) to be introduced into most of its models. The plug-in hybrid system became available in Chery vehicles carrying the Fulwin sub-brand, Jetour vehicles under the Shanhai sub-brand, and Exeed vehicles.[69][70][71]

In January , Chery has signed strategic cooperation framework agreements with Nio to establish cooperation in battery standards, battery swapping technology, the construction of battery swapping service networks, and operation.[72]

In March , Chery fully acquired Soueast, a carmaker based in Fujian that was a subsidiary of Fujian Motors Group.[73] The production facility of Soueast is used for producing Jetour brand vehicles.[74]

In June , Jaguar Land Rover (JLR) and Chery signed a letter of intent in electric vehicle cooperation. JLR will license the Freelander nameplate to Chery Jaguar Land Rover to produce EVs based on an Exeed EV platform called the E0X. Freelander as a brand will be separate from JLR's 'House of Brands' portfolio or Chery's brand line-up. Freelander vehicles will be sold in China, with plans for global exports.[75] In November , Chery established the FR Brand Division to lead the development and marketing of Freelander-branded models.[76]

In October , South Korean manufacturer KG Mobility, formerly SsangYong Motor, signed an agreement with Chery to co-develop electrified vehicles for global markets. KG Mobility will receive the T2X platform developed by Chery.[77]

Operations

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Chery's main production base in mainland China is located in Anhui.[78][79][80] As of , the company had two auto-making production bases, two engine-making facilities, and a transmission production plant.[79] Another car-making production base located in Dalian, Liaoning province, became operational in .[80][81]

Research and development

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Chery invests around 7% of its total sales in research and development,[82] and, as of , had over 4,000 patents.[83] It has R&D facilities in Wuhu, Anhui province,[84] and Changshu, Jiangsu province.[85] Chery has cooperative agreements with many foreign component firms, including the American ArvinMeritor,[86] American Autoliv,[87] American Delphi Automotive,[87] the Australian company Futuris,[87] German Robert Bosch GmbH,[86] American PPG Industries,[86] German Siemens VDO,[86] French Valeo,[86] and the American Visteon.[88] Some have helped Chery establish a local supply chain.[86]

Chery established a R&D center at Raunheim, Germany near Frankfurt in , which went operational in under Chery Europe GmbH. The facility employed around 30 to 50 people in its initial phase. In early , Chery announced the expansion of the R&D center in Raunheim and will double the number of employees at the center to 120 by the end of . The facility has gradually grown into one of Chery's most important R&D and design bases over the past five years.[89]

Design

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In , Chery hired former General Motors designer James Hope.[90] Former Porsche designer Hakan Saracoglu joined Chery's design team in .[91] Saracoglu reshaped and guided the brand's design direction, steering it away from the budget perception associated with its popular Chery QQ.[92] In , former Mazda Europe design director Kevin Rice joined Chery to lead its design centre in Raunheim, Germany.[93] Rice left the company in to join Pininfarina in Turin, Italy, and his position was replaced by Steve Eum, who hailed from General Motors and joined Chery in .[94][95]

As of , Chery has six design centers, including one in Wuhu, two in Shanghai, and another in Raunheim, Germany.[96]

Overseas markets

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Chery has been the largest Chinese automobile exporter. The company started its export operations well ahead of other Chinese manufacturers, making its first export to the Middle East as early as . It became China's largest car exporter since ,[107] except in when SAIC Motor briefly took the position.[108] As of , Chery has been exporting cars to more than 80 countries and regions, with a total export volume of more than 1.7 million vehicles. Russia, South America and the Middle East are its key export markets.[109]

Chery's export business started in October when a car dealership owner from Syria spotted a Chery car on the streets of Beijing, catching his interest. Following numerous inquiries, he learned that this car was the recently released first-generation Fengyun/Fulwin sedan. The dealer promptly visited Chery's headquarters in Anhui, aiming to meet current chairman Yin Tongyue, at that time an executive deputy general manager to discuss potential export collaboration. Eventually, Yin agreed to export 10 cars as a trial, which marks the beginning of Chery's venture into overseas markets. Subsequently, Chery started exporting cars in larger volumes to other regions.[15] Prior to , unlike most larger Chinese carmakers, Chery lacked a joint venture with any foreign manufacturer. A report by the US Congressional Research Service asserted that such joint ventures usually restrained overseas sales.[110]

In the following two decades, Chery's annual export sales remained at around 100,000 to 150,000 vehicles until a surge occurred in the early s. From to , Chery's export business experienced rapid growth, doubling to 937,100 vehicles in compared to the previous year, constituting 52 percent of its total sales.[15] That year, Chery ranked first in export volume among Chinese automobile manufacturers, surpassing SAIC Motor's passenger cars division which held the position in .[89] Its overseas ventures were reported to be more lucrative than its domestic operations due to the larger margin per vehicle, with a significant portion of its over 30 billion yuan profit in coming from international markets.[111]

Chery claims to be the first Chinese manufacturer to export complete vehicles, CKD components, engines, and complete vehicle manufacturing technology and equipment abroad.[109] As of , Chery has 10 production bases overseas which produce either complete or semi-complete knock-down kits, mainly in South America, the Middle East and Russia; they have also been expanding to Southeast Asia and Europe.[89]

Americas

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Brazil

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A Chery dealership in São Paulo, Brazil,

Chery has a production base in Jacareí, Brazil, that began construction in July ,[112] in a joint effort with the government of the state of São Paulo.[113] The plant began operating in August , with a first-phase production capacity of 50,000 units per year. In phase two, the plant would achieve an annual production capacity of 150,000 units. Models produced there were the hybrid-powered Celer (since October ), the QQ (since the second half of ),[37] Tiggo 2 (since mid-)[114] and Arrizo 5 (since October ).[115]

In , Grupo Caoa bought 51% of the company for US$60 million, renaming it to Caoa Chery. Caoa has been producing the Tiggo 4 in Anápolis, Goiás in knock-down kit form since November .[116] Between and , the plant had produced the Arrizo 5, Arrizo 6, Tiggo 2, Tiggo 3x, Tiggo 5x, Tiggo 7 and Tiggo 8, totaling around 146,921 vehicles.[117] In August , Caoa announced a R$3 billion investment in the Anápolis facility to expand and modernize the plant. It resulted in the opening of a second production shift in January , which created 1,357 new jobs in total.[118]

In , Chery will enter the Brazilian market independently without Caoa by using three brands: Omoda, Jaecoo, and Exeed. The company also plans to reactivate the Jacareí plant to produce cars from the three brands; the plant is currently owned by Caoa Chery and has sat dormant since February .[119]

Mexico

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Omoda cars in a dealership in Mexico

In , Chery entered the Mexican market as Chirey.[120][121] An alternate form of the name was chosen due to American businessman Malcolm Bricklin owning the Chery trademark in North America; he had planned to import Chery vehicles to the US and Canada in the s.[58]

In May , Chery introduced Omoda as its second brand in the country. The Chirey Omoda 5 was renamed the Omoda C5. Omoda will open 70 dealers across the country that will be shared with the upcoming Jaecoo brand.[122][123]

Uruguay

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Between and , the Argentinian company SOCMA Group[124] manufactured Chery vehicles in the Oferol factory in Barra de Carrasco, Canelones, Uruguay.[125] The Tiggo was officially launched in Uruguay in October .[126][127] The plant was permanently closed as of May .[128]

Venezuela

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First introduced to the country in mid-, Chery vehicles continued to be the only licensed Chinese car exports to Venezuela as of , according to the company.[83] Opened in September , a new Chery production site in the north-central state of Aragua, owned by the ZGT joint venture, produces the A1 and A3 models.[129]

Australia

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Chery vehicles first entered Australia in , brought in by Australian distributor Ateco.[130] Several models were introduced, including the J1, J3 hatchback and J11 SUV. The J1 became the cheapest car on sale in the country during its introduction at A$9,990.[131] In August , Ateco recalled 2,250 Chery vehicles after the cars' engines and exhaust gaskets were found to contain asbestos.[132] Ateco ended sales of Chery vehicles in , citing Chery's shifting focus to its home market and communication difficulties with the headquarters.[133]

The brand re-entered Australia in under a subsidiary owned directly by Chery.[134] The first model it introduced is the Chery Omoda 5, which started deliveries in March .[135] That year, the brand sold 5,890 vehicles in the market.[136]

Indonesia

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Chery models were assembled from knock-down kits and sold in Indonesia since until by Indomobil Group. Indomobil ended sales of Chery in due to low sales and recurring quality issues.[137][138] In , the brand returned to Indonesia under direct factory-backed operations, and contracted PT Handal Motor Indonesia to assemble Chery vehicles in the country as of late .[139][140] Chery plans to export vehicles from Indonesia to the Philippines, Vietnam, and Thailand in .[141]

Iran

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The Fownix Tiggo 7 Pro, assembled by Modiran Vehicle Manufacturing Company

In , Chery signed CKD (completely knock down) agreements with Iran's SKT Company and Modiran Vehicle Manufacturing Company, which involved a factory construction to assemble vehicles in the form of complete parts, which has lower tariffs than directly importing complete vehicles.[11] Manufacture from kits in Iran began in .[142] In late , Chery stated that it held a minority ownership in a joint venture with Iranian Khodro and Canadian Solitac as its partners.[143] This joint venture controlled a knock-down factory in Babol, Mazandaran.

Malaysia

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In , local manufacturer Proton considered producing an MPV and an SUV model together with Chery in Malaysia, which are reported as the Chery V5 and Chery Tiggo, respectively.[144][145]

By , a factory assembling Chery models from kits opened in Johor Bahru, Johor through a 50&#;50 joint venture between local company Alado Corp Sdn Bhd and Chery.[139][146] Its first model was the Chery Eastar MPV, originally the V5 in China.[147] In , Chery planned another factory that was expected to be built and operational in Malaysia by .[148][149]

In , the brand returned to Malaysia under direct factory-backed operations, and assembled vehicles at Inokom's facility in Kulim, Kedah since August .[150] In , Chery Malaysia announced that it will build a fully-owned plant in Shah Alam to complement production at Kulim, which will produce Jaecoo vehicles.[151]

Pakistan

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Chery has entered into a manufacturing and licensing agreement with Ghandhara Nissan of Pakistan.[152] The assembly of Chery SUVs in Pakistan commenced on 31 March .[153]

Taiwan

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The Chery A3 was assembled since August in Taichung, Taiwan, by Shengrong Auto, a subsidiary of Prince Motors (Chinese: &#;&#;&#;&#;; pinyin: Tàizǐ Qìchē), a Taiwanese car company.[154]

Europe

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Italy

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DR 5.0, a rebadged Chery Tiggo 5x in Italy

Since November , Chery partners with DR Motor, a subsidiary of DR Automobiles Group to assemble and distribute Chery vehicles in Italy under the DR brand.[155] According to a Chery representative, the company chose not to enter the European market directly at that time since the European Union is a "sensitive" market and it "shall only consider entering the region when all conditions permit".[156] Some Chery vehicles are assembled at a facility in Macchia d'Isernia to be sold as DR Automobiles vehicles. The original Chery Tiggo was marketed as the DR5, while the Riich M1 became the DR1.[157] Later DR Automobiles added models developed by JAC and BAIC.[158] In , DR Automobiles added a more "premium" brand called Sportequipe, which are also rebranded Chery vehicles.[159][160] In February , DR Automobiles started selling its first electric vehicle, the DR 1.0, a rebranded Chery eQ1.[161]

Chery will enter Italy directly and separately from DR Automobiles by selling two brands, Omoda and Jaecoo, by the third quarter of .[162][163][164]

Spain

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Chery first entered the Spanish market in March , introducing the Omoda 5 and Omoda E5 under the Omoda brand.[165]

In April , Chery signed a joint venture deal with Spanish company EV Motors to build cars in a former Nissan factory in Barcelona, Spain. Nissan ended production in the plant in , before handing the facility over to Spanish electric motorcycle maker Silence and local engineering groups QEV and EV Motors. Chery will start producing its Omoda vehicles at the plant first, while EV Motors will produce its own vehicles starting in the fourth quarter of .[166]

Rest of Western Europe

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Chery plans to launch three brands in core European markets by , with each brand launching three new models. Two brands, Omoda and Jaecoo, will be launched first in , while the luxury brand Exlantix (a sub-brand of Exeed) will be launched in .[89]

Russia

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Omoda C5 vehicles in transit in Moscow, Russia

Chery entered the Russian market in .[167] Avtotor produced Chery models from kits from to .[168] TagAZ also produced Chery vehicles, from to , but they usually carried non-Chery badges such as "Vortex".[169] In , Chery started selling Exeed vehicles in Russia.[170]

As a result of Western, South Korean and Japanese manufacturers leaving Russia due to the Russian invasion of Ukraine in , Chery reported massive sales growth in Russia. In , Chery was second only to the local Russian brand Lada with annual sales of 119,000 vehicles with a local market share of 11.2 percent, accounting for 20 percent of Chery's overseas sales.[89]

In , local manufacturer AvtoVAZ will produce the Chery Tiggo 7 Pro Max at a former Nissan assembly plant, now rebranded as the Xcite X-Cross 7. Despite local production, the Chery Tiggo 7 Pro Max will still be available in the Russian market as Chinese imports sold through Chery dealerships.[171]

Turkey

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In October , Chery announced plans for an assembly plant in Turkey to be built in cooperation with the Turkish carmaker Mermerler Otomotiv at a cost of $500 million.[172][173] The plant is planned to have an initial capacity of 20,000 units per year, rising to 100,000 by .[173] As of , the plant has yet to commence production.[174]

Chery re-entered Turkey in late under its own direct investment, and started sales in March with three models, the Omoda 5, Tiggo 7 Pro and Tiggo 8 Pro.[175] In its first year of sales, Chery was able to sell 40,590 vehicles in the country, ahead of many established brands.[176]

Ukraine

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Chery had a partnership with ZAZ since [177] and manufactured cars from kits at sites in Zaporizhzhia and Chornomorsk. Since February , the Chery A13 has been manufactured in Ukraine, where it is rebadged and sold in the country as a ZAZ Forza.[178]

Africa

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Egypt

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Assembly of Chery cars from complete knock-down kits began in Egypt in according to the company itself,[179] but news reports indicate that it only expressed initial interest in doing so that year.[142] As of , some Chery models were sold in the country under the brand name Speranza.[180][181] One Egyptian factory making Chery models from semi-complete knock-down kits had a production capacity of 30,000 vehicles/year.[182]

In , Chery stated the parts localization ratio for Egypt was 45%.[83]

South Africa

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Chery started sales in South Africa in backed by Bidvest and Imperial local dealership companies. Several vehicles that was introduced include the QQ, QQ3, the J2 and J3 hatchbacks, and Tiggo TX. Chery left the market in , and re-entered in .[183] By , it is the sixth best-selling brand in the country. In April , Chery introduced its Omoda brand in South Africa as a more "premium" offering.[184]The Jaecoo brand was added in .[185]

Products and brands

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Chery

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For more information, please visit Chery Jetour Dasheng SUV.

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Sedan

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• Chery Arrizo 8

• Chery Arrizo 5 Plus

• Chery Arrizo 5

SUV

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• Chery Tiggo 9

• Chery Tiggo 8 Pro

• Chery Tiggo 7 Plus

• Chery Tiggo 5x

• Chery Tansuo 06

• Chery Omoda 5

Chery Fulwin

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Logo of Chery Fulwin

Chery Fulwin (Chinese: &#;&#;&#;&#;; pinyin: Qíruì Fēngyún) is a product line of Chery established in November to market plug-in hybrid vehicles. Most Fulwin vehicles are based on Chery petrol vehicles with an additional plug-in hybrid system marketed as Kunpeng Super Performance Electric Hybrid C-DM. Chery Fulwin vehicles are distributed through separate dealership network.[186]

Chery Fulwin products will be divided into three series: A, T and M, representing sedan, SUV and MPV categories respectively. Extended-range electric and battery electric vehicles are also planned.[187] Its first model, the Fulwin A8 sedan was available to pre-sale in December .[188]

The Fulwin/Fengyun name was a model name used by Chery several times in the past, starting from the Fengyun sedan in .[189][190]

Products

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• Chery Fulwin A8

• Chery Fulwin A8 L

• Chery Fulwin A9

• Chery Fulwin T8

• Chery Fulwin T9

Chery New Energy

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Chery New Energy (Chinese: &#;&#;&#;&#;&#;; pinyin: Qíruì Xīn Néngyuán) is a subsidiary of Chery established in April to produce and market electric vehicles.[50]

Products

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• Chery QQ Ice Cream

• Chery eQ1

• Chery eQ7

Exeed

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Exeed (Chinese: &#;&#;; pinyin: Xīngtú) is Chery's premium brand for passenger vehicles, which was established in .

Jetour

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Jetour (Chinese: &#;&#;; pinyin: Jiétú; lit. 'victory road') is Chery's SUV brand launched in . The brand mainly produces mid-size crossovers and SUVs, targeting Chinese families living in tier-three and tier-four cities who travel long-distance frequently.

iCar

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iCar is Chery's electric vehicle brand established in April .[191] According to Chery, the brand targets younger people aged 25&#;35 who are pursuing new careers.[192] iCar started sales of its first vehicle, the iCar 03 SUV, in February .[193]

Luxeed

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Luxeed (Chinese: &#;&#;; pinyin: Zhìjiè) is Chery's premium electric vehicle brand in collaboration with Huawei under Harmony Intelligent Mobility Alliance (HIMA). The first car, a premium electric executive sedan was unveiled on November 9, , and became the first car with the Harmony OS 4 system on board.[194]

Karry Auto

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Karry Auto is a Chinese market only brand founded by Chery in . It specialises in the production of light commercial vehicles and people carriers for passenger transport. Some of the products created for Karry are marketed overseas under different marques by Chery.

Overseas brands

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Chery has three brands that are only used in overseas markets, which are Omoda, Jaecoo and Exlantix. The former two brands, positioned above the Chery brand, were introduced in April at an international dealership and journalist convention in Wuhu, Anhui, although Omoda has been selling vehicles in Russia since .[67] Exlantix, a brand consisting of rebadged Exeed Sterra electric vehicles, was introduced in Russia in March .[195]

Former brands

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Riich

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The Riich brand was discontinued in .[33]

• Riich G3

• Riich M1

• Riich G5

Rely

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The Rely brand was discontinued in .[33]

• Rely V5

• Rely X5

• Rely H5

Engines

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The company produces and exported engines under the brands ACTECO and CAC. Chery engines have been bought by Fiat and exported to the US.[79][196]

Partnerships

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In , Chrysler planned a cooperation with Chery that would have seen the Chery A1 sold as a Dodge-brand car in the US and abroad.[78] The plan would have quickly increased the Chrysler small car stable, and the two companies participated in a signing ceremony in late .[197] In early , a similar deal was reached between Chrysler and Nissan, however, and the Chrysler-Chery cooperation was abandoned.[198] Around the time of the Chrysler Chapter 11 reorganization, Chrysler discussed the possibility of an asset sale with Chery, but this also fell through.[38] In the same year, Fiat and Chery signed a memorandum of understanding for the creation of a car-making joint venture. Intended to begin operations in , it was to manufacture Fiat and Alfa Romeo-branded products for the Chinese market and be located in Wuhu. The deal was put on hold in March .[39] Since , Fiat produced cars in China with local partner GAC Group.[199]

In May , Chery and Fuji Heavy Industries (currently Subaru Corporation) had an agreement to establish a joint venture to manufacture Subaru vehicles in China. The plan was to establish a 30 billion yen plant in Dalian with initial annual capacity of 50,000 cars, that would expand to 150,000 units. Subaru vehicles has been imported to China since .[200] The joint venture proposal was rejected by the Chinese National Development and Reform Commission by September , as the major shareholder of Fuji Heavy Industries, Toyota already has two joint ventures in China, which is the maximum amount allowed.[40] Later in May , the proposal was rejected for the second time due to production overcapacity in the country.[41]

Chery also has automotive component-manufacturing joint ventures with Arvin Meritor, Johnson Controls, and PPG Industries.[201]

In , there were plans for Chery to buy a percentage of Tata Motors in order for Chery to gain entry into the Indian market, and in order for Tata Motors to receive vehicle platform and technology for cars such as the proposed Tata Blackbird.[202] However, due to COVID-19 pandemic and the continuing political tensions over the Chinese/Indian border, reports have indicated that the plans have been shelved.[203]

Joint ventures

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Chery Jaguar Land Rover

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In March , Chery and the UK-based luxury carmaker Jaguar Land Rover (JLR) agreed to invest an initial US$2.78 billion in a new China-based joint venture that will sell and manufacture Jaguar and Land Rover vehicles and engines, as well as establish a research and development facility. It is the first JLR facility outside the UK that engages in full-scale production operations.[204] The joint venture received regulatory approval in September .[205] A production base was built in Changshu, a county-level city close to Shanghai.[206] The first Chinese-made Range Rover Evoque rolled off the production line on 21 October from Chery Jaguar Land Rover's plant in Changshu, Jiangsu.[44]

Investments

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Qoros (12% stake)

• In , Chery established Cowin Auto as a subsidiary target at producing budget vehicles for young consumers.

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• In , following a restructuring of the Chery shareholding, part of Cowin was sold to the government of Yibin City through the subsidiaries Yibin Auto Industry Development Investment Co., Ltd. and Sichuan Yibin Pushi (PUSH) Group Co., Ltd. which took possession of 50.5% and 0.5% respectively at the price of RMB 2.5 billion. Chery retained a 49% stake.

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  The company's headquarters was moved to Yibin, Sichuan and renamed to Yibin Kaiyi Automobile Co., Ltd.

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• In , Chery continued to reduce its shareholding in Kaiyi Auto and transferred it to the Yibin Municipal Government, which Chery retained a 18% stake.

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Motorsport

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In and , Chery competed in the Dakar Rally. The four cars participating in the rally included two Rely X5 race SUVs, one X5 lead car and one Rely H5 support vehicle for emergency situations.[212][213][214]

Sales

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Chery group sales data by country

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Year Global China Russia Mexico Brazil Turkey Egypt Chile South Africa Israel Australia Indonesia Ukraine Argentina Uruguay Colombia UAE Iran 85,349 87,138 189,445 292,291 379,001 37,120 334,800 15,728 411,231 4,922 750,456 548,444 8,909 729,497 551,072 6,624 653,476 533,161 19,004 561,062 437,044 19,855 570,718 494,824 18,139 9,097 325 1,297 592 1,231 3,775 3,059 5,037 5,860 29,449 575,108 410,591 4,964 3,630 394 746 201 446 4,572 1,437 4,794 5,716 32,730 682,474 504,247 4,758 1,362 8,173 333 19 66 3,670 431 1,573 3,514 41,019 604,708 455,718 5,905 3,536 5,477 6,430 184 7 7,027 417 865 752,759 427,811 5,611 8,353 4,649 8,261 1 6,152 123 798 747,806 411,179 6,358 19,824 5,582 7,178 1,672 1,998 480 597 731,117 450,786 11,452 19,456 9,844 7,078 1,974 1,319 694 429 961,926 644,322 40,874

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39,739 16,314

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26,906

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4,653 1,144 687 1,232,727 781,390 52,183 7,450 35,033 18,918 24,953 8,013 593 687 836 788 1,881,316 765,209 206,035 38,484 31,290 27,587 10,209 13,204 16,110 11,127 5,890 4,099 1,143 426 900

Controversies

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Copying claims

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In June , American manufacturer General Motors sued Chery accusing it of copying the first generation Daewoo Matiz (developed by a GM subsidiary, GM Daewoo) in its design for the Chery QQ.[222] General Motors also claimed a disguised Matiz was used in a crash test in place of the Chery car.[223]

GM executives claimed design duplication with many parts interchangeable between the QQ and the Matiz,[18] and GM China Group stated the two vehicles "shared remarkably identical body structure, exterior design, interior design and key components."[224]

While some Chery cars are not copies, such as the Pininfarina-designed A3,[225] the QQ may not be the sole Chery model that wears famous-name designs; the Chery Tiggo is criticised for resembling the second generation Toyota RAV4.[226] Other models using the Matiz technology found in the QQ include the closely related QQ6. The Eastar and its derivatives (V4, B12, and B22) have also been considered[by whom?] to be copies of the Daewoo Magnus.[227]

After mediation attempts failed, then-GM Daewoo (now known as GM Korea) brought a case against Chery in a Shanghai court, but by jurisdiction had been moved[18] to the Beijing No.1 Intermediate People's Court.[228] Around that time Chinese state officials, including a vice-minister of commerce and a vice-director of the State Intellectual Property Office, publicly supported Chery. The State Intellectual Property Office has claimed that GM did not properly patent their technology.[228] In late the lawsuit was settled.[223]

See also

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References

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Over the last few years, the South African auto industry has seen an influx of Chinese automotive brands into our local market. These brands have arrived with a fighting spirit and products that seem to offer much value for not much money. Legacy auto brands have been feeling the pinch, with a few falling off the radar, while Chinese brands have increased market share. Many SA consumers and industry insiders are beginning to wonder if there is enough market share to go around and enough demand to support these new brands.

The latest entry into our market is Jetour, a sub-brand of auto giant Chery International. Arriving in SA two months ago with the Dashing and X70 SUV models, Jetour has quickly moved to establish itself as a luxury SUV brand. Jetour has invited AutoTrader on a whistlestop tour to China to visit the factory where these vehicles are assembled and to test drive two new models arriving in SA next year. Before we left on said tour, we had the opportunity to sit down with company execs at Jetour SA's swanky new head office and warehouse in Midrand to learn about the company and what it has in store for the SA market.

3 Things you need to know about the Jetour X70 Plus

Jetour Dashing

Who is Jetour?

The Jetour brand was established in and falls under the Chery brand. Locally, it operates as a stand-alone entity apart from Chery, Jaecoo and Omoda and markets itself as a premium luxury brand. The name is an amalgamation of the words Jet and Tour, pronounced as such: leave the French at the door. In six short years, Jetour has sold over 1.1 million vehicles and established itself in several emerging markets in Europe, North Africa and South America, fast becoming the premium SUV brand of choice in countries like Peru, Angola, Chile, Egypt, Russia and the Middle East.

Jetour X70

What is Travel+?

If its marketing is to be believed, the company's international strategy is driven by a so-called "Travel+" philosophy that integrates cutting-edge technology with travel to enhance the customer experience. Jetour&#;s long-term strategy is to be the automotive brand with the deepest understanding of travel, along with excellent off-road capabilities, world-class safety, and ample space for travel with family and friends. 

Jetour T1

What can SA car buyers expect in ?

Jetour has created two product series for family travel and off-road travel, led by the Dashing and X70 Plus, which are both currently available in South Africa. The next series is due to launch locally next year. The brand has high expectations for the South African market. Already having sold 500 units in two months, it aims to sell 2 000 units by the end of the year, with a cumulative sales goal of 30 000 units over the next three years.

On this trip to China, AutoTrader can drive two models to SA, the T1 and T2 rugged offroad SUVs. these vehicles are slated to arrive in the second half of

Contact us to discuss your requirements of Volkswagen ID6 CROZZ electric vehicle. Our experienced sales team can help you identify the options that best suit your needs.