In 2013, in order to change the predicament of survival, Chery cut off its many brands and models drastically, and transformed from the previous multi-brand strategy to focus on individual brands. For this reason, Chery Automobile finally achieved its first profit in 10 years in 2014. After being silenced for a while, Chery Automobile, which was previously stripped by Chery, finally announced that it is trying to enter the MPV market from the micro-car and hopes to achieve the sales target of 300,000 units in the next five years. However, the relationship between Kairui and Chery has made the Kairui somewhat embarrassed. In essence, there is competition and game between the two.
“Replicating†Wuling Mode Chery’s multi-brand strategy launched in 2009 not only failed to significantly increase Chery’s sales, but also dragged down the company’s overall performance due to a series of resources. In 2013, Chery Automobile underwent a strategic adjustment to cancel the two sub-brands of Ruiqi and Weilin, and the original micro-car brand Kairui was placed under Chery Holdings.
However, Chery is not willing to give up the divested old assets and brands. Under the leadership of Chery Automobile’s former deputy general manager Lu Jianhui, Chery Automobile’s original Qiyun team has invested in a new construction in the Wuhu Jiangbei Industrial Park Concentration Zone. The automotive project, the Jiangbei project, undertakes the stripped models and resources. In 2014, this project was officially renamed as Kaiyi Automobile, which was jointly invested by Anhui Jiangbei Development Co., Ltd., Chery Commercial Vehicle (Anhui) Co., Ltd. and Wuhu Construction Investment Co., Ltd., and became parallel with Chery Automobile. One of the subsidiaries of Chery Holdings, and the formerly stripped Kerry Automobile was officially included in the business scope of Kaiyi Motor.
As a brand focused on micro-cars, Kairui Automobile was not in a good condition. After experiencing the sales of the car to the countryside and the micro-car market in 2009, the market performance has been in a state of tepid. From the data point of view, with the launch of the automobile to the countryside policy in 2009, the domestic micro-car market has already plummeted. Hafei and Changhe, which originally focused on this market, have appeared “difficult†due to the market recession. After including the hippocampus and other entrants, they have gradually abandoned this market and used the original plan as a base for micro-cars to transform into a passenger car production base. According to statistics from the China Association of Automobile Manufacturers, the sales volume of micro-cars in 2014 was only 1.33 million units, down 18% year-on-year, making it the only negative growth category in the market segment.
After a period of silence, Kerry began to try to give an answer. Unlike Kay Wing's new idea of ​​taking smart cars, Kerry will still focus on the traditional market. However, the future of Kerry will not be limited to micro-cars, but the current hot MPV market. Statistics show that the growth rate of the MPV market in 2014 was close to 50%, which was 10% higher than the SUV market.
Just a few days ago, Kairui Automobile launched an MPV product such as the K50, trying to achieve sales turnover. According to data released by Chery Automobile, in 2014, the sales volume of Kairui Automobile was only 40,000 units. After the new car was launched, Kairui Automobile hopes to achieve the sales target of 300,000 units in the next five years.
In the view of automobile analyst Zhang Zhiyong, Kairui entered the MPV market from the micro-car, which is actually copying the path of SAIC-GM-Wuling. Against the backdrop of the market share of nearly 50% in the micro-car market, facing the decline in overall market demand,
Wuling has taken the lead in entering the MPV market and has quickly gained a foothold. In the traditional micro-car field, it has also continuously eroded the market share of its competitors through the upgrade of safety technology. In 2002, Wuling sold less than 150,000 vehicles, and by 2014, its sales had exceeded 1.8 million. “The micro-car market is declining, but the demand for upgrades of base customers is very large, so there is indeed a certain space for independent brands in the MPV market, and it is also correct for Kairui to enter this field.†Zhang Zhiyong is accepting the reporter of “First Financial Daily†Said in the interview.
With Chery's "smashing the wire", although the idea is correct, the road after the car is not smooth. Zhang Zhiyong believes that in his view, revitalizing the previous resources and re-entering the market is not a "marketization" behavior. "Chery should concentrate on resources and resources to build a brand." In a sense, the transfer of the original sub-brand to Chery Holdings is just a change from one hand to the other, and there is essentially no change. From the current point of view, including the model platform, R & D team, test site and production, Kairui is fully dependent on Chery Automobile. “Now Kairui shares with Chery, which is a platform.†Li Xue, deputy general manager of Kairui Automobile Marketing Company, bluntly said.
"This model and positioning have made Kairui a bit embarrassing." Zhang Zhiyong pointed out. Indeed, before this, Chery Automobile Chairman Yin Tongyue said in an interview with the media in early 2014 that the main purpose of Chery's new Kaiyi car was to revitalize assets. “Doing a company has a break-even point. The pursuit of quantity is very important, because you can amortize a lot of management expenses only when you reach the scale.†But in fact, in the state where the overall market environment of the independent brand is further deteriorated, By relying on Chery's “blood transfusion†or “sharingâ€, can Kairui and its Kaiyi car live better? The person from the public relations department of Kairui Automobile said frankly: "Although Chery and Kay Wing and even Kairui are one, in essence, there is competition and game between several. What we have to do is not to simply fill the blank market of Chery, because if there is In the blank field, Chery will do it himself.†But he also admitted that in the face of market flexibility, whether Kaiyi Automobile can make better decisions may still depend on the game between the two sides.
“The movement of Kaiyi Automobile has not been particularly large since its establishment.†Zhang Zhiyong believes that at present, Kaiyi Automobile, including Kairui, should accelerate the absorption of external forces to build a sustainable future for itself. Research and development capabilities. In addition to R&D, in his view, under the current situation that the profitability of Chery Holdings is not particularly good, Kaiyi and Kairui Automobile should further develop, and whether there will be restrictions on the funds, it is still worth watching. The problem.
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