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Chery positive about outlook for brand in South Africa

18th January 2013

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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Chery South Africa (SA) MD Brett Soso expects 2012 sales of the imported Chinese brand to be up 3% on 2011 numbers, with 2011 not a particularly successful year for Chery as it suffered quite a downturn, compared with 2010 sales.

However, Soso is positive the future of the brand is bright in South Africa, as he expects 2013 sales to grow between 10% and 15% on 2012 numbers.

Chery SA does not report specific sales numbers.

New models, such as the J3 hatchback launched in Pretoria last month, will “go a long way” towards helping Chery achieve this comeback in the local market, says Soso. It is the first new model Chery is introducing to South African car buyers in more than three years. This year will also see the introduction of the J2, the J3 sedan, “as well as another possibility”, says Soso.

Chery SA sells it vehicles through 33 dealerships – mostly multifranchise dealerships – with services available at 35 dealerships. Another three dealerships will be added over the next two months, says Soso.

“In the end, we would like to get to 40.”

Soso would also like the brand to move to standalone dealerships selling only Chery vehicles.

“But we need product and we need sales. Dealerships must be profitable.”

The new J3 will compete in the segment which features vehicles such as the Volkswagen Golf and the Nissan Tiida.

Pricing for the J3, currently only available in one model, the 1.6 TXE manual, is R179 900, which places it around R13 000 below a competitor such as the Kia Cerato.

However, Soso expects to see “significant increases in pricing” across the automotive industry this month, owing largely to the rand’s sharp dip against major currencies seen in the last few months.

Soso does not expect the J3 to overtake the Tiggo as Chery’s most popular model in South Africa, but says 2013’s introductions may achieve this. He is, however, hopeful that the J3 will lure younger buyers to Chery – those around 25 years of age.

Chery SA aims to sell thirty to forty J3 models a month.

Designed in Italy
The J3 was styled by Italian design studio Pininfarina.

The vehicle is powered by a 1.6 ℓ petrol engine, designed and developed by Austrian powertrain specialist AVL, in conjunction with Chery’s own engineers. It produces 87 kW of power at 6150 rpm, with maximum torque of 147 Nm available between 4 300 rpm and 4 500 rpm.

The electrical and electronic control systems are supplied by Bosch and Siemens.

The J3 employs independent, multilink rear suspension with an antiroll bar, which was developed, together with the steering system, by the Motor Industry Research Association of the UK, in conjunction with Chery.

The vehicle is fitted with six airbags.

The all-disc braking system features antiskid braking and electronic braking distribution.

The list of standard equipment includes black leather seats and trim; climate control; automatic on and off control of the headlights and windscreen wipers; an audio system with MP3 compatibility, a USB port and six speakers; audio controls on the steering wheel; alloy wheels; rear park-distance control; electric windows and rear-view mirrors; alarm/immo- biliser; remote central locking; adjustable head- lamp height; individual rear reading lights; and a follow-me-home light function.

The Chery J3 is available in white, silver, red, blue and black.

The vehicle is backed up by a three-year/ 100 000 km warranty, a three-year/75 000 km service plan, and three-year road-side assistance plan.

The first service is due at 5 000 km, the second at 15 000 km and thereafter every 15 000 km.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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