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Chery fights for a market share with star lineup

By Xu Xiao | China Daily | Updated: 2015-04-20 09:47

Domestic automaker Chery is bringing its new lineup of nearly 20 models to the ongoing Shanghai auto show under the theme "new standard, new powertrain and new Chery" to seize market share from joint ventures.

Joint venture brands have developed complete lineups in China's sedan market with competitive prices forcing domestic brands to work hard for a share of the market.

Moreover, joint venture brands are tapping into the SUV market, an area domestic brands have largely relied on.

This market climate urged Chery to create its "new standard" also called the "Arrizo standard", which is based on Arrizo 7, Chery's first self-developed compact sedan featuring original design and research.

Through this standard Chery hopes to compete with joint ventures.

New powertrain

"New powertrain" partly refers to the turbocharged engines Chery used in its Arrizo sedan family and Tiggo SUV lineup to broaden the sedan market and strengthen its SUV market share.

The ambitious 1.5 T Arrizo 7 went on sale in March. The previous Arrizo 7 was equipped with a 1.6-liter engine.

The 1.5 T version can produce peak power of 112 kW and top torque of 205 Nm. It can accelerate from zero to 100 km/h in 9.9 seconds with fuel consumption of 6.9 L.

The 1.5 T Arrizo 7 has a price tag of between 72,900 yuan ($11,800) and 104,500 yuan, while the 1.6 L version is priced at between 75,900 yuan and 126,900 yuan.

The Arrizo M7 based on the Arrizo standard will make its premiere at the auto show.

The M7 is 4,730 mm long, 1,823 mm wide and 1,590 mm high, with a wheelbase of 2,800 mm.

Huang Huaqiong, general manager of Chery's sales company, said the Arrizo family would be a strong market force in 2015. Chery is expected to also unveil other Arrizo models this year, such as the Arrizo 5.

The 1.5 T Tiggo 5, one of Chery's two star SUVs, will hit the market at the auto show with "a surprising price," according to the company.

As well as the turbocharged engine, the automaker will develop a new generation of fuel stratified injection engines and new continuously variable transmissions in the next five years, said Chen Anning, Chery's executive deputy manager, during an interview before the auto show.

Chen said that the automaker would invest more than 10 billion yuan to develop three new platforms to build ten new products in the next five years.

Chery's new powertrain also includes new energy technologies.

At the auto show, Chery will unveil its ipower intelligent and efficient powertrain system, which features traditional energy technology and new energy technology focused on hybrid, plug-in hybrid and battery electric vehicles.

Chen said that Chery planned to develop more than five new energy products in the next five years.

Chery will also display two concept cars, the Arrizo 5 teaser car and the @Ant 3.0, to show the automaker's foresight as an innovative corporation.

The Arrizo 5 teaser car showcases Chery's latest carmaking technologies.

The @Ant 3.0 concept provides a convenient, safe and low-cost solution to urban residents through interconnective functions.

New Chery

At the 2013 Shanghai auto show, Chery announced its new brand strategy "One Chery" to integrate its portfolio and better cater to market demands.

The strategy resulted in several achievements in 2014. The automaker sold 455,380 vehicles both at home and overseas, a 4.2 percent growth from the previous year.

In the domestic market, Chery sold 353,091 vehicles, a 16.2 percent year-on-year increase, its first increase since 2011.

The automaker's revenue increased 45 percent year-on-year and it achieved its overall profit goal.

Chery's average vehicle price increased to 82,000 yuan at the end of 2014, from 54,000 yuan in April 2013, a rise of between 55 and 60 percent.

Based on the improvements, Chery hopes to become a "respectful, innovative and internationalized" automotive enterprise, according to the company's development goals.

It plans to strengthen its leading position in the entry segment before 2016 and become a competitive internationalized auto company after 2020, according to the company. Therefore, 2015 is an important year for the automaker's future development and the auto show will be a propeller, the company said.

xuxiao@chinadaily.com.cn

Chery fights for a market share with star lineup

 Chery fights for a market share with star lineup

The 1.5 T Tiggo 5, one of Chery's two star SUVs, will hit the market at Auto Shanghai 2015. photos provided to China Daily

 Chery fights for a market share with star lineup

The 1.5 T Arrizo 7 went on sale in March.

 Chery fights for a market share with star lineup

The Arrizo M7 is based on the Arrizo standard.

(China Daily 04/20/2015 page42)

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