Going Global & Managing Global Businesses Case Study

China’s Automaker Chery’s Global Expansion: Can it Race Past the ‘Made in China’ Image?

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Abstract:
In 2008, China based independent automaker, Chery Automobile Co Ltd, emerged as the most successful domestically branded auto company in China. In just over a period of ten years, Chery had grown to become the largest exporter of passenger cars in China. Its key markets comprised only of the developing nations, but Chery was keen to reach out to the developed markets in the US and Europe. While competing with global icons like General Motors (GM), Ford, Chrysler, Toyota, Honda and Nissan remained a major challenge for Chery, global perception for 'made in China' brands posed a greater challenge. Analysts believed that Chery would need to run an extra mile to race past the 'made in China' image, which symbolises poor-quality, inexpensive and low-end goods among international consumers.

Pedagogical Objectives:

• To positioning of Chinese automakers in the global automobile industry
• To emergence of 'made in China' auto brands
• To challenges for these brands in the global market.
• To trends in the global automobile industry.

Keywords : Chery Automobile Co Ltd; Chinese automobile industry; 'Made in China' brand image; Global expansion strategy; Strategic alliances; Competitive advantage; Competitive dynamics; Intellectual property rights; Brand positioning; Brand perception; Market entry strategies; Business environment; Demand dynamics; Global automobile industry; Green cars