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Chery's product lineup is gradually becoming more defined. The company aims to expand its market reach with the mini car QQ, position the Fengyun series as its core offering to strengthen competitiveness in the mid-size car segment, and enter the premium market through the Oriental Son model to capture higher value. At the same time, Chery continues to enhance its presence in the passenger car market, gradually expanding into SUVs and other segments, aiming to become a full-range automaker.
On August 28, Jin Pubo was on a bus driving through Dalian, looking out the window. "We want the industry to know that Chery has kept pace with global automotive technology development and is changing the status quo of Chinese automakers being dependent on foreign technology," he said. That afternoon, Chery launched a new modified vehicle called "Cowin CVT." As the general manager of Chery Automobile Sales Company, Jin Yongbo spent over ten minutes explaining to international reporters that this powertrain system is comparable to that of the Mini Cooper. His goal was to showcase Chery’s technical capabilities.
At the launch event that evening, an explanation was given: "Chery used this engine technology to break into the mid-size car market for the first time in China." A reporter responded, "Actually, this is also Chery’s debut in marketing technology."
Since the first Chery car hit the market in March 2001, the brand has offered vehicles at almost every price point. Every time Jin Baobo met with reporters, the key focus was always Chery’s performance-to-price ratio. From the outside, "technology" had never been a central theme in Chery’s marketing strategy. "At that time, we focused on cost-effectiveness and competitive pricing because it was more direct and better received by consumers," Jin explained. This approach proved successful—by 2001, Chery sold nearly 10,000 units in just 10 months. In 2002, sales surpassed 50,000 units, placing Chery among the top eight domestic automakers. With strong models and low prices, Chery’s cost-effective strategy perfectly matched the market demand during a period of limited new models and high consumer interest.
By August 2003, Chery had developed four major series: Fengyun, QQ, Oriental Son, and Qiyun. With a broader product range, the brand’s price range expanded from 70,000 yuan to over 170,000 yuan. However, as the product line grew, especially after launching the Oriental Son series in the commercial vehicle market, the previously established low-cost image began to limit the brand’s premium perception.
On the evening of August 28, the Cowin CVT, dubbed "Onshore Shark," was unveiled with the theme of "Extraordinary Power and Smoothness." After a brief speech, Jin Yibo introduced the president of Chery’s Technology Institute, Xu Min. Xu delivered a 30-minute technical presentation using visual aids—a rare occurrence in previous press events, which even made some reporters sleepy.
CVT technology, originally introduced by Mercedes-Benz in 1886, gained traction in the 1970s and 1980s with companies like Nissan, Toyota, Audi, Ford, and GM. By the 1990s, it became more mature and widely adopted globally, improving both power and fuel efficiency. Chery’s adoption of this technology highlighted the gap between Chinese automakers and their foreign counterparts in terms of technological advancement and brand influence.
After seven years of development, Chery became one of the most confident domestic automakers in independent R&D. Adopting new technologies became a key strategy for building internal strength. According to Chery, the CVT technology used is sourced from Germany’s ZF VTIP continuously variable transmission, which reduces power loss and enhances ride comfort.
With global CVT adoption expected to reach 3 million units by 2005, China, as a promising emerging market, offers significant opportunities for all manufacturers. Jin Yibo mentioned that the technology would eventually be applied to other models, including an upgraded QQ model later this year, though specific details were not disclosed.
Whether it was the original price-focused strategy or the current technology-driven approach, Jin believed these were necessary steps in Chery’s journey toward building a national independent brand. Considering the sluggish first-half sales, he avoided discussing specific production and sales targets for the City Cloud CVT. "But my pressure is huge," he admitted.
Currently, Chery has 300 first-tier dealers and over 200 second-level outlets. To prevent dealer competition within the same city, the new car will be distributed through selected, powerful dealers—around 100 in total. Jin explained that this strategy was already used for the Oriental Son, which targets a narrower commercial vehicle market, where widespread distribution could lead to price wars.
With the launch of the City Cloud CVT, Chery’s product lineup is becoming clearer: the QQ will continue to expand market coverage and enhance brand influence; the mainstream Fengyun series will strengthen competitiveness in the mid-size segment; the Oriental Son will target the premium market for greater profitability. At the same time, Chery will continue to strengthen its position in the passenger car market and gradually enter the SUV segment, aiming to become a full-range automaker.
From January to July this year, Chery sold over 60,000 vehicles, with the Fengyun series accounting for 30%, the QQ for 40%, and the rest for other models. Annual sales are expected to reach around 110,000. With rising production and sales, Chery’s next goal is to promote its corporate branding. As seen in European and American automakers, different brands are often used to avoid internal product competition. For example, Ford once operated luxury cars under separate brands in China. This model provides a reference for Chery.
Jin revealed that while Chery is expanding its product range, managing it in such a way is possible but no concrete plans have been made yet. Initially, many automakers used DNA concepts to package their products. Now, most domestic automakers use branding strategies, and brand promotion is becoming increasingly important. For a well-regarded Chinese independent brand like Chery, such measures are essential.
Today, many multinational companies recognize that the growing competition in the Chinese market will allow Chinese brands like Chery, Geely, and Great Wall to become the biggest threat to European, American, and Japanese/Korean automakers in the future.
Reporter: Fu Hui, Xu Feng, Dalian.