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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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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Introduction Contd...

Chery had emerged as the seventh largest car producer in China within a decade of its inception in 1997. In contrast with other Chinese automotive companies, the company focused on developing its own car models and technology without collaborating with any foreign joint venture partner.

Chery started exporting its cars in 2001, becoming the first Chinese automotive company to do so. Thereafter, Chery consistently increased its domestic market share as well as exports to become the largest Chinese automobile exporter by the mid-2000s. The company launched cars which were priced lower than their comparable rival models.

That made them popular among the price-conscious Chinese customers (Refer to Exhibit I for a Note on The Chinese Automobile Industry). Since the mid-2000s, Chery had been one of the leading players in the Chinese auto industry with its record-breaking sales and export volumes. For the fiscal year 2009, Chery registered record sales of 500,000 cars.

In December 2009, Chery's total sales volumes touched a monthly record of 63,967 units. The company also held the record of being the #1 exporter of passenger cars from China for nine consecutive years till 2009.

In early 2010, Chery made plans to export its cars to highly competitive developed markets like the US and Europe which were the world's largest automobile markets...

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