Chery Auto's Success Story

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Case Details:

Case Code : BSTR377
Case Length : 13 Pages
Period : 2003-2010
Pub Date : 2010
Teaching Note :Not Available
Organization : Chery Auto
Industry : Automobile
Countries : China

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background Note

Chery was founded in 1997 in the city of Wuhu in Anhui province in China as Anhui Chery Automobile Company Limited. The company was started as an automotive project by the local government of Wuhu City...

The Growth Strategy

Since its inception, Chery had believed in the principle of 'no stability without domestic market, no strength without overseas market, аnd promoting its business in both domestic as well as the overseas market.'...

Going Global

According to Yin, Chery initially did not proactively pursue global expansion like exporting cars to foreign nations and setting up plants abroad. In 2001, a Syrian auto dealer, who wanted to import Chery's cars to Syria, approached the company with a proposal. Initially, Chery planned to reject the proposal as it had not even thought of exporting its cars till then...

The Challenges

Chinese products were often perceived to be of inferior quality by many developed nations. Chinese goods lacked a strong brand image and goodwill among consumers in developed nations and hence Chinese car makers initially focused on exporting to developing markets more...

The Road Ahead

In February 2010, Chery announced its ambitious plan of launching 17 new car models in 2010 alone. This came as a surprise to many analysts. Launching more than one model on an average every month was looked upon as a risky strategy, especially during a time when world economies were yet to recover from an economic crisis...

Exhibits

Exhibit I: A Note on the Chinese Automobile Industry
Exhibit II: The Spark and QQ Models

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