Friday, November 29, 2019

Why Now Is the Time to Bring Chery Auto Back to the Philippines


Under the stewardship of United Asia Automotive Group or UAAGI, Foton has grown to become a powerhouse. From its humble beginnings, it’s now risen to become one of the Top 10 best-selling car brands in the Philippines. With that in mind, UAAGI has set its sights on a new venture, Chery Auto. Will lightning strike twice?

Unknown to many, Chery is the first automotive brand to be exported from China. Suffice to say, things didn’t turn out as they expected. Marred with copycat designs and quality issues, they learned that they needed to step up their game. Facing a fast-growing automotive market there, Chery established a holistic technical and product R&D system, and tired global talents. They even invested in their own powertrain development and rationalized their platform development.


Their investment and hard work certainly paid off. In the latest 2019 J.D. Power Initial Quality Study (IQS), Chery ended up with a 92 PP100 score—well above the average of 97 PP100. The study tracks new-vehicle quality by examining problems experienced by new-vehicle owners within the first two to six months of ownership. The overall initial quality score is determined by problems reported per 100 vehicles (PP100), with a lower number of problems indicating higher quality.

“Chery approached me two years ago,” reveals Rommel Sytin, President of UAAGI. “I was somewhat hesitant until I made a visit to their headquarters in Wuhu, China. Their vehicles, particularly the crossovers, have evolved into truly world-class products in terms of design, specifications, workmanship, and performance. They are already compliant with Euro 5 and even Euro 6 emissions standards. Their manufacturing facility is fully robotized.”


Investment in R&D has helped Chery grow, selling 7.2 million vehicles since its founding in 1997. Additionally, they’ve exported more than 1.4 million units to over 80 countries. In 2018 alone, they exported 126,993 units—more than MG, JAC, and Brilliance (the next three biggest exporters) combined.

“The products and the service weren’t what the market needed then,” says Sytin. “But now, we are confident—we are convinced—that all the ingredients are in place. The timing is right.”


And if Filipino customers aren’t convinced enough, Chery is offering an industry-leading 10-year / 1-million-kilometer powertrain warranty on top of a 5-year general vehicle warranty. Further sweetening the deal, Chery Auto is also throwing in three years of preventive maintenance service for free.

3 comments:

  1. Chery has a mountain to climb to beat the other Chinese carmaker. Based on the SRP and Car they presented MG GAC and the Volvo owner Geely have the best competitive price offering and the premium Looking Car.

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  2. Together, they will crash Japanese brand

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  3. 3 yrs preventive maintenance, 5 yrs general warranty, 10yrs/1 million km powertrain warranty. Only thing left for Chery to do is throw in the whole factory too. Those multi year decade-long warranty should wipe out any doubts as to the cars' quality. That should raise the resale value of the cars too. Kudos Chery, it's very impressive.

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