Chery celebrates millionth car

After seven years and nine months, China's Chery Automobile has become the first Chinese automaker to produce its millionth car in this short time span.

The announcement of this milestone was made Wednesday, Xinhua reported. The millionth car is an A3 four-door hatchback, which was first unveiled at the Beijing auto show in 2006 and is expected to go on the market later this year. The car uses Chery's own-brand engine that was made to meet environmental and safety standards in both the U.S. and European markets, the report said, refuting claims that Chinese manufacturers do not have the necessary technology to meet the standards on their own.

The firm was founded in 1997, and started production in 1999. Chery manufactured its first 500,000 vehicles in about six years and took only the next 17 months to complete the other 500,000, the report said.

The auto maker appears to be operating at a breakneck pace, especially when compared so with Sino-German automaker FAW Volkswagen, which made its first millionth car after 13 years of production. Shanghai GM and Guangzhou Honda took over eight years to make their first million cars, Xinhua reported.

Chinese Vice Premier Zeng Peiyan wrote to Chery in a congratulatory letter, saying the car maker has distinguished itself as China's self-developed auto brand at home and abroad. "Taking the millionth car as a new starting point, Chery should further innovation on technologies and management and upgrade its products and service."

This is just what the ambitious car exporter intends to do.

At present, Chery has the capacity to produce 400,000 cars, 400,000 engines and 300,000 transmission cases a year. The new plant set to being operating in October this year will increase this capacity by another 250,000 to 300,000 cars a year. Chery intend to increase its annual output to hit a target of one million cars by 2010, media reported.

While Chery's market share for the domestic market increased to 7.2% in 2006, from 6.7% in 2005, the company intends to expand further on global markets.

To date, data shows that China's top exporter has exported 153,694 cars to 56 foreign countries, and it plans to raise its exports by 800% to 400,000 annually by 2010.

The car maker has also formed partnerships with foreign auto markers such as Fiat and Chrysler. Chery's president Yin Tongyao said this move will "help Chery build indigenous cars with international competitiveness."


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