Chery Automobile

Biao Luo, Chengyuan Wang and Liang Liang
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Biao Luo: School of Management, University of Science and Technology of China, Hefei, Anhui, P.R. China
Chengyuan Wang: School of Management, University of Science and Technology of China, Hefei, Anhui, P.R. China
Liang Liang: School of Management, University of Science and Technology of China, Hefei, Anhui, P.R. China

Asian Case Research Journal (ACRJ), 2017, vol. 21, issue 01, 37-80

Abstract: Chery, which used to be the leader of Chinese indigenous automobile manufacturers as well as the entry-level market, has been losing its leader position since 2010. Chery, founded in 1997, has experienced a radical expansion along with industrial liberalization and economic growth in China since 2000. In 2007, Chery started the internationalization strategy by launching two middle and high-end brands and developing a series of joint ventures consecutively. However, Chery has confronted various challenges since 2010 with the growing maturity of Chinese automobile industry, including declining domestic sales and market share, and thus was in a weak position under attack. Finally, Chery announced its tactical adjustments in April 2013.This case describes the co-evolution between the environmental transitions of Chinese automotive industry and the business strategies of Chery. Students are asked to analyze the development of Chery and provide specific suggestions of future directions on competitive strategy for Chery.

Date: 2017
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DOI: 10.1142/S021892751750002X

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