Chery once again leads China's auto exports

Hard hit by the COVID, overseas business development has become extremely difficult, and almost all companies' overseas business sectors are accepting unprecedented challenges. Then, should the overseas market continue to expand? Whether the focus should be transferred to the domestic market has become a major decision-making problem faced by enterprises.

This year is the 20th year of Chery Group's overseas business. Judging from the sales volume announced by the group a few days ago, it exported 10,565 vehicles in September, a year-on-year increase of 23.3%. In the first three quarters of this year, Chery exported 69,371 passenger vehicles, a year-on-year increase of 36.4%. Among them, a series of Chery Automobile star products led by the new generation of Tiggo 8 have quickly gained a good reputation in Russia, Saudi Arabia, Chile, Ukraine, the Philippines, Peru, and other markets. Up to now, Chery Group has exported more than 1.65 million vehicles, ranking first in exports of Chinese brand passenger vehicles for 17 consecutive years.

During the COVID period, domestic and foreign auto companies have been greatly affected in the production and sales links. In the second half of this year, although the auto market ushered in minor signs of recovery, the overall environmental pressure is still huge. Chery's overseas business is still able to achieve positive growth, which shows that its overseas business has strong resistance to pressure.

As an early independent brand that entered the international market, Chery has established 4 R&D centers, 10 production bases and more than 1,500 sales and service outlets overseas. Chery products currently cover more than 80 countries and regions overseas. As early as 2001, Chery officially entered the Middle East market. The first batch of 10 first-generation Fengyun sedans entered Syria, officially opening its overseas journey. In Latin America, Chery has entered Brazil, Chile, Argentina, and other countries. In addition, Chery also has rich operating experience in markets such as Russia, Ukraine, and Egypt.

In my opinion, in addition to Chery's comprehensive industrial layout in overseas business, the key to success in overseas markets is also due to the flexible adjustment of the company's automotive strategic layout. In the early stage of COVID, when the domestic market was forced to suspend operations, Chery urgently sent additional personnel to major overseas regions to seize opportunities to break through overseas markets. During this special period, Chery Group's overseas exports have achieved sequential growth for two consecutive months, and its actual sales in markets such as Brazil and Russia have set a new high in the past five years.

Domestic competitors such as Geely and Great Wall Motor are the major exporters of Chinese auto brands. The export sales of these two in September were 8,068 units and 7,773 units, respectively. But when it comes to the activeness of their own brands in overseas markets, Chery is still the dominant one.

In the global automotive market, developed countries in Europe and the United States have always been in a dominant position, and because they have mastered advanced technology, they have a strong voice. It is not so easy for Chinese brands to enter developed countries, because decisive factors such as channels, technology and brand influence are indispensable.

On February 11, the American company HAAH announced an in-depth cooperation with Chery Automobile. The two parties will register and operate a new car brand-VANTSA in the United States, and will jointly launch a high-end SUV based on EXEED TX/TXL. At the end of 2021, the VANTSA brand will enter the North American market. At present, HAAH is setting up a brand-new auto dealer network, responsible for new product sales, services and auto parts for the entire North American market.

The EXEED brand favored by American companies is a brand new high-end brand under Chery. Among them, the strongest 1.6T in-cylinder direct-injection engine equipped with EXEED TX/TXL is comparable to many 2.0T powers. The engine was also awarded the "Top Ten Engines" in China in 2019. In addition, Chery has independently developed four major product platforms: T1X, M1X, M3X and a new energy exclusive platform. More mature technologies not only improve product quality, but also greatly reduce Chery's development cycle and costs.

In terms of new energy, Chery has not only established vehicle integration, core technology, and core component development capabilities and R&D systems. At present, the world’s mainstream pure electric, hybrid, extended-range, and even fuel cell and other NEV mainstream new technologies have Get involved.

In terms of autonomous driving, Chery's "Lion" platform not only realizes the mass production of L2+ autonomous driving models, it will realize the L3 highly autonomous driving function this year, and by 2025, it will launch a prototype vehicle that realizes L4 autonomous driving.

Chery has made progress above its rivals in terms of fuel powertrain, vehicle platform research and development, or in new energy, intelligent network connection and autonomous driving.

With the implementation of joint venture projects in the United States, Chery will also further accelerate its steps into the European and American markets.

As we all know, in recent years, brands have become major courses for their respective main brands. Taking the leading domestic automakers as examples, Geely launched Lynk & Co, Great Wall launched WEY, and Chery also launched a new high-end brand EXEED. However, as far as exporters are concerned, Chery is not satisfied with only advancing from the brand dimension. The real high-end is to make a global model based on the needs of world users.

On October 15, Tiggo 8 PLUS was launched. As a flagship SUV built based on global standards, Tiggo 8 PLUS is not only Chery Automobile's latest product carrier integrating global wisdom and core technology, but also Chery Automobile's strategic model for the global market. At present, Chery Automobile has initially completed the layout of Tiggo 8 in the global market. Next, Tiggo 8 PLUS will also be launched in Saudi Arabia, Russia, Uruguay, Ukraine, Chile and other places around the world.

Build a truly global car. It will further help Chery Automobile to move towards the strategic goal of "creating a globally competitive international brand".

With the arrival of Tiggo 8 PLUS, Chery will also have another bumper harvest in the last quarter of this year, leading China's auto exports as the "spokesperson" of China's high-end autos.

my country's automobile exports can be traced back to the 1990s, when the overall export volume was low. After 2000, my country's automobile industry began barbaric development. By 2012, it exceeded one million vehicles for the first time. China's auto industry has experienced decades of development from the earliest introduction of joint ventures to the export of independent brands. However, in terms of technology, the independent brands of the year were completely incomparable with multinational companies. Early important parts and components were provided by multinational companies. Self-owned brand car companies headed by Chery also unlocked related core technologies such as engines after continuous independent research and development. It can be said that the status of Chinese auto brands in the global market is hard-earned.

As the main pillar of the national industry, going global of Chinese cars is an inevitable trend of development and the only way for the rise of independent brands.

In my opinion, apart from the phased difficulties of suspension of work, production or even sales, the impact of the COVID on the global trade pattern is long-term. During the COVID-19 period, companies like Chery with 20 years of experience in overseas market have even more hope of highlighting the encirclement.