Automotive / MobilityChina
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JOURNEY · DETAIL
Chery Automobile: From an Unregistered Automaker in Wuhu to the World's No. 1 Exporter
Founded: Wang Shenghua · Anhui Chery Automobile Co., Ltd.
JOURNEY
Key Fields
FIELD STAMPSIndustryAutomotive / Mobility
RegionChina
ScaleGiant
ChannelOther
Origin
In 1997, Wang Shenghua founded Chery in an abandoned factory in Wuhu, Anhui. Initially, it was only to address the shortage of domestic auto parts and meet rapidly growing private car demand; at that time, the local government provided a 'hundred-billion-yuan industry' support policy, offering land and tax incentives. In the early days, capital was tight, the team had only dozens of people, and through low-cost manufacturing and localized R&D, Chery tried to break into the domestic car market.
Milestones
1997
Company founded and first S1 model development Turning point
In 1997, Wang Shenghua founded Chery Automobile in Wuhu, leveraging an abandoned factory and local government industrial support to launch the first mini-vehicle S1 project. Annual revenue was about RMB 100 million, laying the foundation for the technical R&D team.
2001
Initial public offering and listing Growth
In 2001, Chery was listed on the Shenzhen Stock Exchange, raising about RMB 3 billion for capacity expansion and brand building. It subsequently launched the 'QQ' small car, with cumulative sales exceeding 1 million units, and the brand began to take shape.
2005
Failure of high-end joint venture project Failure
In 2005, Chery signed a joint venture agreement with a U.S. automaker to develop mid- to high-end models, but due to mismatched technical standards and excessively high R&D investment, the project was forced to terminate in 2007, resulting in a net loss of RMB 200 million that year.
2010
First overseas plant Turning point
In 2010, Chery established its first overseas complete vehicle plant in the suburbs of Moscow, Russia, with annual capacity of 300,000 vehicles. That year, export volume reached 300,000 vehicles and export revenue was about RMB 1.2 billion, marking a key turning point in its globalization layout.
2015
Tiggo series became a global hit Growth
In 2015, the Tiggo 3 entered 150 countries and regions, with annual export volume reaching 1.5 million vehicles and revenue exceeding RMB 6 billion. Brand international awareness increased significantly, establishing the global market positioning of 'value-for-money' models.
2022
Milestone of 7 million cumulative exports Growth
By the end of 2022, Chery's cumulative vehicle exports had reached 7 million units—on average, one Chery model left China every 16 seconds. Annual export revenue exceeded RMB 20 billion, and its global market share rose to 1.2%.
Turning Points
- After the failure of the joint venture project in 2005, Chery decided to shift to independent R&D of core technologies.
- Building a plant in Russia in 2010 marked a key turning point from the domestic market to globalization.
- Cumulative exports surpassed 7 million units in 2022, establishing its position as the world's No. 1 exporter.
Failures & Pitfalls
- In 2005, the joint venture technology cooperation led to the project's early termination due to a standards mismatch.
- In 2008, domestic sales declined, leading to a financial crisis, and the media questioned it as an 'unregistered entity'.
- In 2013, its joint venture plant in Brazil halted production due to supply chain problems, losing about RMB 500 million.
关键成功要素
- Persist in localized R&D and manufacturing.
- Respond quickly to overseas market demand.
- A multi-platform product matrix covering different consumer tiers.
- Accelerate expansion through capital market financing.
Lessons
- Technological independence is fundamental to the long-term competitiveness of automakers.
- Blind joint ventures can easily lead to technical and management conflicts.
- Overseas localized production can significantly reduce costs and improve brand acceptance.
- Capital operations must match the pace of business growth to prevent financial risks.
Core Data
- revenue_2022：RMB 8.15 billion
- export_vehicles_2022：6 million vehicles
- market_share_global_2023：1.2%
- employees：65,000 employees
- market_cap_2023：RMB 120 billion
Competitors / Peers
In the global passenger car market, Chery's main competitors include BYD, Geely, and SAIC Motor. BYD leads the domestic market with its new energy technologies and strong supply chain; Geely has achieved international expansion by acquiring Volvo and building the Lynk & Co brand; SAIC relies on joint venture brands to hold advantages in the high-end market. Through low-cost manufacturing, rapid exports, and a diversified product system, Chery has formed a differentiated competitive advantage in export volume and overseas penetration.