Chery Automobile Co., Ltd

1.0 Introduction

1.1 Purpose of Report

The purpose of this report is to analyze the internationalization strategies of Chery Automobile Co., Ltd to carry out the objective of international marketing. The report also included pestle and swot analysis to understand the international business between Chery Company joint venture with others countries Company the benefit bring for its Company.

1.2 Company Introduction

Chery Automobile Co., Ltd was founded on January 8, 1997, with registered capital of RMB 3.98 billion and plant construction commenced on March 18, 1997. (China Daily, 2017). Chery is one of the most representative independent automakers. Chery has adhered to independent innovation as development strategy and gradually established a complete technical and product R & D system, built a series of domestically renowned brands such as Fulwin, QQ, Eastar, Tiggo and Arrizo, exported products to over 80 countries and regions, thus enjoying a global fame. By the first half of 2014, Chery had achieved cumulative sales of over 4.5 million units including cumulative exports of over 1 million units, both ahead of other Chinese passenger vehicle manufacturers. (Linked in, 2017)

2.0 Strategies used by Chery Automobile Co., Ltd to internationalize

Chery Automobile Co., Ltd have used the joint venture method as the strategy to become internationalize. According to the China Association of Automobile Manufacturers, the total car output of China are made up to 72% by the joint venture of Chery. Although the Chery Company’s market share are just less than 30%, but the car manufacturing still grew rapidly to 26%. (Shi Yaodong, 2007)

3.0 Chery Automobile Joint Venture with Jaguar Land Rover

The benefits for Business Company for enter international joint venture market is for reducing the risk example lower taxes, favourable monetary conversion rates and manufacturing costs for the extending market to entirely new places. (George Tyler, 2013). Jaguar Land Rover and Chery will share the research and development, technology and manufacturing knowledge across the joint venture. (Richard Wachman, 2012) 

 Chery Jaguar Land Rover Automotive Co., Ltd in United Kingdom was established through a 50:50 independent joint venture in the year 2012 November. (Jaguar Land Rover Page, N/D) This is the world’s second largest of British economy car maker of joint venture with the £1.1bn of investment (Angela Monaghan, 2012) and also include a new manufacturing plant with RMB10.9bn (US$1.8bn) in Changsu, Chinese market  which is expected to open in 2014   (Graeme Roberts, 2014). The cooperation of both company will help the Tata Motors Ltd. To revive the slipping global sale. (Nikhil Gulati & Norihiko Shirouzu, 2012)