https://www.engineeringnews.co.za

Chery SA hopes for return to growth with new J2

The Chery J2

Photo by Chery

The Chery J2

Photo by Chery

The Chery J2

Photo by Chery

The Chery J2

Photo by Chery

15th August 2013

By: Irma Venter

Creamer Media Senior Deputy Editor

  

Font size: - +

The new J2 five-door hatchback carries a big responsibility on its shoulders. It has to be a game-changer for Chery South Africa (SA), which last year saw sales contract by 8%, as opposed to the 3% growth originally expected.

South Africa is the first right-hand-drive market to receive this model from China.

Chery SA believes the new J2 will become its volume seller at around 100 to 200 units a month, propelling it to 8% growth this year, and returning the importer to 2011 sales levels.

MD Brett Soso regards 2012 as a “disappointing year” for Chery SA, but says the company has made some model adjustments and hopes to improve its market share in 2013.


“We sat down, did a study and worked out how we are going to improve our sales.”

Dealer numbers have already improved in recent months from three to 36, with the goal to round off the network at 40.

Chery SA, established in 2008, is a joint venture between the Imperial and Bidvest groups. Soso says the importer is committed to continue operations in South Africa, as the shareholders see Chery as “a future global brand”.

However, in order to grow in the shorter term, the brand requires a more continuous update of its model line-up to ensure it continues stimulating consumer interest, he adds.

The company launched in South Africa with three products, including the QQ3 and Tiggo, in 2008, adding only the J1 and J3 in recent years. The QQ3 and Tiggo have not been updated in any significant way since their introduction.

However, the QQ3 will soon see some specification changes, with the Tiggo due for a facelift in 2014.

“These are the things we must do. We must make sure we refresh our models,” says Soso. “We made some mistakes. We stagnated. We had the same cars from 2008 to 2013, and consumers want change. There is so much choice out there. If we keep this in mind, we can grow the brand.”

He adds that it is often difficult to secure right-hand-drive models from the Chery plants, located in left-hand-drive China.

Chery itself is motivated to achieve more in the global car market, and has been on a global recruitment drive this year, appointing people from a number of other vehicle manufacturers, such as Porsche, BMW and Ford.

In July it also rolled out the first model, the Arrizo, of what is to be a new design language for the Chinese brand.

Chery Overseas Investment Corporation MD Moe Wang says Chery hopes to export 50% of its production volume over the next few years.

Current production volume at Chery is 600 000 units a year, with 180 000 units exported.

South Africa is one of Chery’s three biggest right-hand-drive markets.

THE J2
The South African new passenger car market is expected to grow by 7.1% in 2013 over 2012, reaching 475 000 units. Around 43% of current passenger car sales is in the A-segment, or generally speaking, the smaller, more affordable segment of the market. The B-segment, consisting of larger, somewhat more expensive cars, makes up 22% of new car sales.

The 1.5 l J2 will compete in the “AB segment of the market’, says Soso.

“In size the J2 competes against established, popular models such as the Hyundai i20, VW Polo, Ford Fiesta and Toyota Yaris, to name a few, but from a pricing perspective significantly undercuts these competitors. This value-for-money price positioning puts the J2 squarely up against smaller A-segment cars, such as the VW Polo Vivo, Ford Figo and Toyota Etios.

“There is a big task ahead of us to take a Chinse brand into this market.”

Chery has priced the J2 at R129 900.

“We are, of course, delighted with the recent announcement of a factory-backed warranty covering the new J2 hatchback model for five years, or 120 000 km, which will be a further boost to our brand-building efforts locally,” adds Soso.

The J2 also comes with a two-year/30 000 km service plan.

“In built quality, fit and finish, it is a nicely put-together car,” says Soso.

The J2’s petrol power train delivers 140 Nm of torque at 4 500 rpm, and has a power rating of 72 kW at 6 000 rpm.

Fuel consumption is 7.4 l/100 km.

Standard equipment on the one model available includes antilock braking with electronic brake-force distribution, follow-me-home lights, front-dual airbags, power steering, electric mirrors, remote central locking, alarm, air-conditioning, electric windows and CD front loader and USB.

Edited by Creamer Media Reporter

Comments

Showroom

VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (26/04/2024)
Updated 7 hours ago By: Martin Creamer
Magazine cover image
Magazine round up | 26 April 2024
26th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.077 0.132s - 160pq - 4rq
Subscribe Now