Auto manufacturer Chery is set to introduce its new electric vehicle brand named "Yueji," with the launch model expected to hit the market by the end of the year.
In a bid to challenge industry giants like Huawei, Chinese automaker Chery is benchmarking its organisational practices and culture against the tech giant. This transformation is part of Chery's strategic push to penetrate the New Energy Vehicle (NEV) market more effectively.
Chery's premium sub-brand, Exeed, has already taken a step in this direction with the launch of its Sterra series. To accelerate the upscale push, Exeed is adjusting its communication strategy, moving away from a comfort-focused label towards a "technology" label.
As part of this strategic shift, Chery is investing in new technology like intelligent driving to achieve premium positioning. The company aims to seize a leading position among the NEV ranks by 2024.
In line with this ambition, Chery is launching a new NEV brand called "Yueji" in the third quarter of this year. The Yueji brand has been a year in the making.
The first model of Yueji, codenamed T1GC, is expected to debut by the end of the year. Yueji will be overseen by Chery's Omoda and Jaecoo (O&J) unit. Notably, Yueji's first offering is a hybrid compact SUV that will feature iFlytek's Starfire large model and Chery's latest chassis.
Yueji is actively fundraising and plans to establish stores in urban areas combining full-service outlets and experience hubs. The aim is to create a seamless customer experience while promoting the brand's innovative offerings.
Chery's NEV sales have been relatively low, with the company aiming to shed its "can't sell NEVs" stigma in 2024. To achieve this, Chery has filed to trademark Yueji under the international classification of Class 12 transportation vehicles in January. The company also revealed plans for at least 22 NEV models and 18 Internal Combustion Engine (ICE) models in 2024 as part of its "sea of cars" strategy.
The main Chery brand sold 1.34 million ICE and hybrid models in 2023, accounting for 71.3% of its total sales volume. This represents a 52% increase year-on-year, with 937,000 of these being exports.
Interestingly, most of Chery's suppliers are self-sourced, with external suppliers mostly from Europe, responsible for supplying interiors, seating, and other components.
Chery's NEV brand iCar launched its iCar 03 model in February 2023, with pre-orders exceeding 16,000 units in a month. This success underscores Chery's potential in the NEV market and its commitment to innovative, customer-focused solutions.
The person leading the Yaoguang Laboratory project at Chery is Xu Fan. Under his leadership, Chery is promoting systematic, innovative R&D and embracing digital marketing more readily to penetrate the NEV market.
Chery aims to outpace the industry's growth by 10-20% in 2024, requiring the sale of at least 2.256 million vehicles. With its strategic moves, innovative offerings, and commitment to quality, Chery is poised to make significant strides in the NEV market.
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