Chery boosts overseas production and exports
September 29, 2011 Category Automotive, Automotive Metals & Minerals
Production began at Chery Automobile’s new Venezuelan factory on August 29. Assembly of its A1 and A3 models in the state of Aragua made Anhui-based Chery the first Chinese automaker to build cars in Venezuela. The country imposes a 40% tariff on imported cars, so the factory is expected to boost sales. The Venezuelan operation follows the roll out of Chery’s Fulwin 2 hatchback in Ukraine, where it began to assemble cars in 2006 and has now produced more than 70,000 units. Chery also reached an agreement with the China-Africa Development Fund to form the Chery Overseas Industrial Investment Co joint venture to provide financial and consulting services in Africa. The new company, with a registered capital of CNY1.27 billion, will be 55% owned by Chery, with the development fund holding the remaining share. Chery first exported cars to Africa in 2003 and now sells about 15,000 vehicles on the continent, mostly from an assembly factory it built in Egypt. In August Chery also became the mainland’s first homegrown carmaker to enter the Hong Kong market when its Tiggo and S21 models went on sale. The only Chinese mainland vehicles on Hong Kong’s roads before were a small number of sightseeing buses. The carmaker has a sales goal of 500 to 1,000 units for this year in Hong Kong and plans to increase the number of dealers from the existing two to four. Another Anhui-based automaker, JAC Motors, reported 280% growth in exports in the first seven months of 2011 compared to the same period last year, much of it to Brazil. Chery exported 17,008 vehicles in July, a 92.53% increase over the same month last year, bringing its exports to 88,835 units in the first seven months, an increase of 89.25% year-on-year. Geely Automobile Holdings reported exports of 13,385 vehicles in the first six months of 2011, a 93% increase over the same period in 2010. Overall exports by domestic automakers in July hit 73,300 vehicles, a 57.7% rise over the same period in 2011. Total exports of China-made vehicles ― including passenger and commercial vehicles ― from January to July totaled 454,400 units, a 57.3% increase over the same period last year, the China Daily reports.
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