In a recent development, Wuhu Tairui Investment Co., Ltd., an affiliate of Chery Automobile, joined forces with CIMC Vehicles Co., Ltd. and Shenzhen Jiusi Investment Co., Ltd. to establish a joint venture named Jirui Trucks Limited in Shenzhen. This strategic move marks another step in Chery's expanding footprint in the commercial vehicle sector. Just days earlier, on the 12th, Chery officially launched its new microcar brand, "Kairui," in Beijing. The brand is set to target the rural and township markets with compact passenger cars and trucks, aiming to tap into underserved segments of the Chinese automotive landscape.
Chery has long harbored ambitions in the truck industry. In early 2006, the company acquired FAW Yangzi, a firm with the capability to produce chassis and small passenger vehicles, with plans to eventually mass-produce trucks by 2008. However, progress on this front was slow, and the initial focus shifted away from trucks toward other models. Despite this, the acquisition laid the groundwork for future expansion.
Now, through collaboration with CIMC Vehicles, Chery is closer than ever to realizing its truck dream. CIMC, a leading manufacturer of special-purpose vehicles in China, lacks its own chassis production capabilities and has traditionally sourced them from heavy truck manufacturers. Chery’s expertise in chassis production could complement CIMC’s strengths in vehicle customization, creating a mutually beneficial partnership.
This collaboration raises questions about Chery’s ability to compete in the highly concentrated heavy truck market, where established players dominate. While the joint venture may offer some advantages, the lack of core technology in heavy-duty truck manufacturing remains a challenge.
Meanwhile, Chery is also making waves in the microcar segment. The newly launched “Kairui†brand is designed to capitalize on government policies supporting minivans and small trucks. With models like Youyou, Elegance, Youjin, and Youyi, Chery aims to capture a significant share of the rural market. The company set ambitious sales targets for 2009, aiming to sell at least 40,000 units and potentially reach 50,000. According to Yin Tongyao, chairman of Chery, the mini-vehicle market is becoming a major growth area.
However, competition in this space is fierce, with SAIC-GM-Wuling and Changan Automobile dominating nearly 70% of the market. For Chery to succeed, it will need more than just strong product offerings—it must also build brand recognition and trust among consumers.
Looking ahead, Chery is pursuing a multi-brand strategy, launching not only Kairui but also “Wei Lin,†a high-end commercial vehicle brand, alongside its existing “Chery†and “Switzerland†lines. This approach reflects the company’s ambition to diversify and expand its market presence. This year alone, Chery plans to introduce 15 new models across its brands, with new releases almost every month.
Despite these efforts, some critics argue that too many brands may dilute Chery’s identity. As one user commented during a forum, “You still have to make a good car first.†The challenge lies in balancing brand diversity with quality and consistency.
With BYD recently surpassing Chery in monthly sales, the pressure is on for Chery to regain its position. While the company is taking bold steps, the success of its multi-line strategy remains uncertain. Whether it can win back traditional customers and establish itself as a leader in both commercial and microcar segments will determine its future in the competitive Chinese auto market.
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