Chery says exporting its products is a key priority as China looks to capitalise on the government-led Belt and Road (BRI) initiative aiming to open up the vast country to new markets.
The BRI drive is in a sense an echo of the ancient silk road linking China to the world, but is now based on harnessing China’s frenetic infrastructure activity, which for example will see 66 new airports open by 2021.
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There may be those in the West who worry such a massive burst of activity will lead to an ever-widening trade deficit with China, but that is not deterring Beijing, which is using the BRI to bring together logistics featuring railways, roads, pipelines, ports and telecommunications infrastructure.
“It is fair to say the Chinese automotive industry has become one of the pillar industries in China,” said Chery deputy general manager, Jia Yaquan at the recent Global Automotive Forum in Chongqing, whose own airport is now a gigantic transport colossus.
“We are coming to a new starting point – going global has become an inevitable trend. Export is the number one for Chery…we need to have good strategy and planning. By 2020 we plan to take the leadership role, that is we will tap into the markets of Europe and the US, while continuing our efforts in emerging markets.
“In 2017 our exports grew by 26% year on year. We have four overseas production bases and five overseas subsidiaries. For Chery, BRI gives that [export] opportunity. Our products cover 60 countries. Chinese automakers need to embrace these new trends.
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By GlobalData“China’s automotive industry is at a new starring point and contributes to the national strategy of turning China into a stronger country.”
Information from the State Council of China notes The Silk Road Economic Belt focuses on bringing together China, Central Asia, Russia and Europe (the Baltic); linking China with the Persian Gulf and the Mediterranean Sea through Central Asia and West Asia; and connecting China with South- East Asia, South Asia and the Indian Ocean.
The 21st-Century Maritime Silk Road is designed to go from China’s coast to Europe through the South China Sea and the Indian Ocean in one route and from China’s coast through the South China Sea to the South Pacific in the other.
“When we go into the European markets we hope our brands will penetrate,” added the Chery deputy general manager. “For EVs, I think that is an opportunity.”
Major shareholders of Chery plan to raise CNY20bn (US$3.12bn) by selling a controlling stake in the automaker, according to local reports.
The carmaker was established in 1997 and quickly became one of the most popular brands in China. In 2007 it was the first Chinese brand to achieve sales of more than 1m vehicles.
