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Chery's product lineup is gradually becoming more defined: starting with the mini car QQ to expand market coverage, leveraging the Fengyun series as its core force to strengthen competitiveness in the mid-size car segment, and entering 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, as a bus drove on the streets of Dalian, Jin Yongbo looked out the window. “We want the industry to know that Chery has kept pace with global automotive technology trends and is changing the status quo where Chinese automakers were once dependent on foreign partners for key technologies.†That afternoon, Chery launched a new modified model called "Cowin CVT." As the general manager of Chery Automobile Sales Company, Jin spent over ten minutes explaining to international reporters how this powertrain system is comparable to that of the Mini Cooper. His goal was to showcase Chery’s technical capabilities. During the launch event that night, an explanation was given: Chery used this technology to enter the mid-size car market, making it the first Chinese automaker to do so. “This is also the debut of Chery’s marketing technology,†one reporter remarked.
Price and Technology Strategy
Since the first Chery car hit the market in March 2001, the brand has offered models at nearly every price point. Every time Jin faced the press, he emphasized Chery’s performance-to-price ratio. From the outside, “technology†had always been a strange term in Chery’s marketing strategy. “At that time, we focused on cost-effectiveness and strong pricing because it was more direct and resonated better with consumers,†Jin explained. This approach proved effective. In 2001, Chery sold nearly 10,000 units in just 10 months. By 2002, sales surpassed 50,000 units, placing Chery among the top eight domestic automakers. With a good model and lower prices, Chery’s cost-effective strategy perfectly matched the market demand during a period of limited new models.
By August 2003, Chery had developed four main series: Fengyun, QQ, Oriental Son, and Qiyun. With a broader range, its price range expanded from 70,000 yuan to over 170,000 yuan. However, after expanding its product line, especially with the introduction of the Oriental Son series targeting commercial vehicles, the low-cost image began to limit the brand’s perceived value. This brought a new challenge: how to elevate the brand’s influence. On the evening of August 28, Chery unveiled the “Onshore Shark†(Cowin CVT) with the theme of “Extraordinary Power and Smoothness.†After a brief speech, Jin introduced Xu Min, the president of the Chery Technology Institute, who spent 30 minutes presenting the CVT technology with visual aids. Such a long technical presentation was rare at previous press events, and some reporters even fell asleep.
CVT technology originated in Germany with Mercedes-Benz in 1886. It was later adopted by Nissan, Toyota, Audi, Ford, and General Motors in the 1970s and 1980s. By the 1990s, it became more mature and widely used globally, improving both power and fuel efficiency. Chery’s adoption of this technology demonstrated that despite the technological lag of many Chinese automakers, the brand was striving to build its own capabilities. After seven years of development, Chery became one of the most optimistic Chinese automakers in terms of independent R&D. Adopting new technologies became a key strategy for internal growth.
According to Chery, the CVT technology used in their vehicles comes from ZF VTIP, a German company. The metal belt-driven CVT reduces power loss and enhances driving comfort. By 2005, global CVT usage was expected to reach 3 million units. As China emerged as a promising market, Chery aimed to capitalize on this opportunity. Jin stated that the technology would be applied to other models in the future, including an upgraded QQ model, though specific details were not disclosed.
Whether it was the initial price-based strategy or the current focus on technology, Jin believed it was a necessary phase in Chery’s journey toward building a national brand. Despite the poor market performance in the first half of the year, Jin did not mention sales targets for the Cowin CVT. “But my pressure is still significant,†he admitted. Currently, Chery has 300 first-tier dealers and over 200 second-level distributors. To prevent competition among dealers in the same city, the new car will be distributed through about 100 selected, powerful distributors. Jin explained that this strategy was already used with the Oriental Son model, which targets a narrower commercial vehicle market. Selling it to all dealers could lead to price wars.
With the launch of the Cowin CVT, Chery’s product lineup is becoming clearer. The QQ will continue to expand market coverage and enhance brand recognition, while the Fengyun series will drive competitiveness in the mid-size segment. The Oriental Son will target the premium market, and Chery will keep strengthening its position in passenger cars, gradually entering SUVs and other areas to become a full-range manufacturer.
From January to July this year, Chery sold over 60,000 units, with the Fengyun series accounting for 30%, the QQ for 40%, and other models making up the rest. Annual sales are expected to reach around 110,000. As production and sales increase, Chery’s next goal is to enhance brand awareness. European and American automakers often use different brands to avoid internal competition. For example, Ford once created a separate luxury brand for its high-end models. This approach offers a reference for Chery. Jin mentioned that while managing multiple products in this way is possible, there are no concrete plans yet.
In the early days of the auto industry, manufacturers often used DNA concepts to package their products. Today, most domestic companies rely on branding to sell their cars, and brand promotion has become increasingly important. For a well-known Chinese independent brand like Chery, such strategies are essential. With the growing competition in the Chinese market, Chinese brands like Chery, Geely, and Great Wall are seen as the biggest threat to foreign automakers in the future.
Reporter: Fu Hui, Xu Feng, Dalian