Chery Automobile: Chinese Firms Catching Up

Chery Automobile Co., Ltd. is one of the few private automobile companies in China. Compared to state automobile companies, it lacks adequate resources and state support; compared to joint-venture brands, it cannot leverage popular and profitable international models. Despite these obstacles, Chery has developed dramatically over the last decade, becoming the top automobile exporter among all automobile companies in China. Strategic alliances served as the foundation of its amazing growth, accelerated technological catch-up and helped it thrive in overseas markets. Since 2012, however, Chery’s domestic sales have continuously decreased, similar to other automobile companies worldwide. Due to the Global Financial Crisis, intense competition in the automobile industry and fast technological change, Chery has been confronted with new challenges in the past two years, such as decreasing sales in the domestic market and more opportunities overseas. Despite its leading position in exports, Chery needs to figure out the next stage of strategic development in adapting to the current and future environment. What should Chery do next?