China: In the first half of 2010, sales volume in China car market firstly surpassed 9 million units, which startled the world again. Of which, China’s car output hit 8.4722 million units, up 49% year-on-year, with growth rate going up by 34 percentage points. China’s car sales hit 9.0162 million units, up 48% compared to the same period last year, with growth rate increasing 30 percentage points. From the market data we can see that market shares of independent passenger car brands ranked the first place from January to June, and the sales volume rocketed to 3.1823 million units, sharing 47.35% of total sales volume in China passenger car market. At the meantime, Chery, identified as the leader among China’s independent car brands, achieved sales volume of 308,900 units, an increase of 46.25% from the sales volume (211,200 units) of last year, and hitting a new profile as compared to previous corresponding periods.

Sales Record Hits New Profile

At the beginning of 2010, China car market returned to reasonable growth period after experiencing an extreme soar in 2009. Chery, as the leader among China’s independent brands, achieved sales volume of 163,500 units in Q1, up 74.6% on a year-on-year basis and hitting a new profile as compared to previous corresponding periods. Of which, the sales volume of medium-end vehicles like Tiggo and A3 went up as a whole, and Tiggo’s sales volume hit 5,812 units in January. At the meantime, Chery QQ3, considered as the “King of China’s Mini Cars”, achieved sales volume of 19,983 units, showing a robust growth. All in all, the fast-rate growth of sales volume in Q1 lays a solid foundation for Chery’s fulfillment to its whole-year sales goal.

Robust Market Performance

In Q2, Chery’s sales volume hit 145,349 units, representing a year-on-year increase of 23.8%. Meanwhile, Chery fixed eyes on the fast-growing SUV market, and its Tiggo performed strongly in the market. In Q2, Tiggo’s sales volume amounted to 12,652 units, showing a significant growth as compared to the same period last year. In addition, Cowin achieved sales volume of 15,764 units in May, with average monthly sales volume surpassing 10,000 units. Also in Q2, QQ3’s average monthly sales volume touched 11,000 units, which directly contributed to Chery’s sales volume of 308,900 units in H1.
In April, China car market, which had grown speedily for more than one year, started to slow down its growth pace. Particularly in May, mainstream carmakers’ sales volume declined. Against the backdrop, Chery products still witnessed stable growth, which redoubled independent brand carmakers’ confidence and exemplified Chery’s indispensable role in Chinese market.

Spotlight: All-round Resurgence in International Market

In H1, 2010, China’s car export showed an ascending trend with the rejuvenation of global economy. That is also exemplified from Chery’s car sales: in June, Chery’s export volume hit 8053 units, representing a year-on-year increase of 106%. In H1, Chery’s cumulative export volume amounted to 38,107 units, up 154.3% on a year-on-year basis and higher than the growth rate of domestic market, and Chery also ranked the first place among its counterparts in export volume. During the resurgence phase of international market, Chery’s prominent performances as compared to its domestic counterparts not only mirrored Chery’s achievements resulting from its fulfillment to the “Fine Development in 2010” strategy made at the beginning of this year and targeted at “Brand, Technology, Responsibility, Internationalization”, but also manifested Chery’s huge development potential in international market.

By the end of Q2, Chery’s total sales volume in 2010 has surpassed 300,000 units, approaching that (330,000 units) in first three quarters of 2009.

In the second half of 2010, Chery’s market performance is worth the anticipation in the face of declining sales volume but increasing inventories (on monthly basis) in the first half. It is worth pointing out that Chery’s high-end mainstream products G3 and G6 will be successively marketed in the second half, and at that time, Chery’s product line will be further consummated, and its product portfolio will be enhanced as well, which will bring about strong impact on domestic medium and high-end markets. Needless to say, with the improving of overseas factories’ production capacity and consummating of overseas sales service network in overseas market, Chery’s sales growth in international market will be further accelerated in the second half, and its market pattern will be more reasonable, with internationalization of market and brand showing more favorable development trend.

Source: http://www.cheryinternational.com/en/node/870