"One out of every three passenger cars exported by China is Chery. ”
On April 18, at tonight's Chery Fengyun New Energy Night, Zhang Guozhong, executive deputy general manager of Chery Automobile Co., Ltd., shouted this exciting and brilliant achievement. This is not only the highlight moment of the Chery brand, but also a gorgeous chapter of Chinese cars going global. Previously, Yin Tongyue, chairman of Chery Group, also said that Chery is the No. 1 exporter of China's automobiles.
It is worth mentioning that in the first quarter, Chery Group exported a total of 253418 vehicles, a year-on-year increase of 40.9%. Chery sold 529,604 vehicles in the first quarter, which means that exports accounted for almost half of its total sales in the first quarter.
At the same time, Chery Automobile also said that starting from this year, the A8 and T9 in the new energy era will also enter the global market one after another, continuing to write the legend of Chery's global "Fengyun". It can be seen that Chery, a "science and engineering man" who has always been low-key, is conquering users around the world with its technological charm.
Chery's "ambition" goes far beyond volume. Recently, according to foreign media reports, the relevant person in charge of the Spanish company EV Motors and Catalonia revealed that Chery Automobile has signed a joint venture agreement with EV Motors to produce cars at Chery Automobile's first plant in Europe. According to insiders, the cooperation will be officially confirmed at an event in Barcelona this Friday, and a number of new energy models under the brand will be put into production in the later stage to compete with many popular models in the European market.
This plant is Chery's first production base in Europe and a microcosm of Chery's globalization process. Behind the brilliant achievements and accelerated overseas expansion, it is worth pondering why Chery is "going global" so rapidly among the many rising independent brands, and why did it choose Spain as a new "bridgehead" to enter Europe?
01
Why did Chery choose the Spanish market?
It is often said that "choice is greater than effort, strive to achieve achievement", and it can be said that clear goals and the right direction are the keys to success. In the midst of the wave of change in the automotive industry, this phrase also holds true for companies.
In the process of "going out", Chery's actions are always "one step ahead", which also lays the groundwork for the rapid growth of export volume later. As early as 2001, Chery opened a chapter of exports, and it has a first-mover advantage over most independent brands going overseas. In recent years, Chery's export speed has increased significantly, with the proportion of export sales increasing from 28% in 2021 to nearly half in 2023.
Chery's choice of Spain as an important stop in the globalization process is not only based on a positive prediction of the location and future prospects of the Spanish market, but also an important decision after careful consideration. On the one hand, the Spanish government is more active and clear about the incentive plans and preferential policies provided by foreign enterprises to build factories, which is conducive to reducing the operating costs and investment risks of enterprises.
On the other hand, despite the slowdown in the European automotive industry, Spain is one of the strongest growing countries in Europe. Automobiles are one of Spain's main exports, accounting for 9% of total exports, and auto parts and components also account for nearly 3%. In 2023, China's car exports to Spain doubled to 108%, allowing China to overtake France as Spain's second largest car importer. This is enough to show that the Spanish market has a high degree of recognition of Chinese cars, and Chery's focus on quality and price advantages is in line with the local market demand.
In addition, as the fourth largest economy in the European Union, Spain has strong strength in automotive manufacturing, aerospace, chemicals, etc. In addition, Spain is also a representative overseas production base for automotive powerhouses such as Germany and France, and companies such as Volkswagen and Renault have commercial vehicle production bases here.
Although the automobile is an important traditional industry in Spain, its automotive industry has significant limitations. Due to the lack of technical strength and capital advantages, it has to rely on foreign technology and capital. With the official start of operation of Chery's Spanish plant, it will also bring advanced electrification and intelligent technology to the local area, and promote the rapid development of the Spanish automobile industry.
Geographically, Spain also has significant transportation advantages, with its proximity to the Strait of Gibraltar and the Port of Barcelona, the largest container terminal on the western Mediterranean coast. Chery's establishment of a factory here can better radiate the markets in Africa and the Middle East, which can greatly save time and transportation costs and shorten the delivery cycle of products compared to exporting from Chinese mainland.
For Chery, Spain is an important springboard to enter the European market and an important testing ground to compete with major international car brands, and there is no room for mistakes in this market.
02
"Concentrate your strength" is more capable of striking hard
If the "preemptive" relies on the forward-looking strategic layout, then to become a veritable "export brother", it is necessary to achieve "iron striking still needs its own hardness", and have enough technical strength to be invincible.
Chery's export volume is inseparable from the unified management behind it, which is different from the form of other enterprises entering overseas markets by means of holding or investment. Chery's overseas business is mainly based on Chery International. According to the analysis of industry insiders, Geely, Great Wall and other enterprises did not surpass Chery in export sales, not because their products and technical strength were not strong, but because these enterprises did not carry out unified operation and management like Chery, resulting in the dispersion of internal resources of enterprises, so as to maximize benefits. And "concentrating on big things" is one of the key reasons for Chery's rapid development.
Up to now, Chery has established 10 overseas factories, exported products to more than 80 countries and regions, with a total export of more than 3.35 million units, and also has 6 overseas R&D centers, 10 KD factories, more than 1,500 service outlets, R&D, production and sales, with a total of more than 13 million global automobile users. Whether it is in the hot Middle East market or in the extremely cold Nordic countries, there is Chery Automobile.
In order to meet the needs of the international market, Chery has created two brands, OMODA and JAECOO, and even the 1.5T engine has been specially developed in domestic and overseas versions to differentiate the launch for different countries and regions.
It can be seen that in the process of globalization, Chery has always adhered to the development path from "going out" to "going in" and then to "going up", insisted on deeply integrating into the global automotive industry chain, and also explored a "Chery plan" for Chinese brands to go global in the process of practice.
03
Why does Chery dare to build a factory in Europe?
For enterprises, overseas factory construction is not only a test of the company's financial and technical strength, but also a comprehensive review of management capabilities, system strength, and localization capabilities.
Although for independent brands, building factories overseas is nothing new. However, few companies still choose to deploy in Europe, precisely because the EU's factory construction standards, carbon reduction policies, environmental protection requirements, and product testing are stricter than those in other markets.
In terms of safety testing, the European Union's E-NCAP test is recognized as the most stringent crash test in the world.
Therefore, for many enterprises, the investment in meeting the EU factory construction standards is far greater than the benefits obtained from building factories in the EU.
Yin Tongyue, Secretary of the Party Committee and Chairman of Chery Holding Group
The reason why Chery dares to build a factory in Europe is that it has been following the highest global standards for product development and production to meet the differences in standards in different countries and regions. In the view of Yin Tongyue, Secretary of the Party Committee and Chairman of Chery Holding Group, the prerequisite for Chery's layout in overseas markets is to have a global vision, global standards and global quality, so as to seize opportunities in global competition. It is precisely this natural confidence that gives Chery the confidence and courage to deal with many standard tests.
As the first independent brand to achieve independent research and development of engines, the first to adhere to positive research and development, the first to put forward the concept of platform-based car manufacturing, and the first to be the first large group to have a lifetime warranty for all vehicles, Chery Automobile has always adhered to the principle of science and technology and quality-oriented.
For Chery, which strives to become a top international brand, the establishment of a factory in Spain is undoubtedly an important step towards a broader global market. With the continuous development and growth of Chery Automobile, it will lay a solid foundation for Chinese automobiles to enter the world stage.