Looking ahead, the Chinese auto market is increasingly dominated by international brands like Volkswagen China, General Motors China, Ford China, and Toyota China. Indeed, in a globalized world, if you're looking for a car, it's likely to be an international brand. However, among these foreign names, there are also cars made by Chinese companies. Once, China was known for innovations like papermaking, ceramics, and embroidery that captivated the world. So why can't we now have our own globally recognized car brand? Which of the few domestic automakers with independent intellectual property will lead the way in building China's automotive international presence? Chery, Hafei, GEELY, and others are seen as potential leaders. These national manufacturers face challenges from foreign capital and technical barriers, but their brand independence and self-reliance give them a fighting chance. While there may not be flashy events or celebrations, there is a strong focus on technological advancement. Recently, at the Chery Lianhai store on Caobao Road, the Chery QQ-Ezdrive media event showcased cutting-edge technology, proving that national brands are not inferior. Chery boldly states: "National brands do not mean substandard products, and low prices don’t equate to low tech." In just three years, Chery rose to become a key player in the domestic auto industry due to its focus on the micro-car segment and the rapid growth of China’s auto market. However, the slowdown in 2004 and the rise of competitors brought new challenges—technical limitations, cost pressures, management issues, and market erosion. Despite this, Chery continues to grow, and each decision now carries more weight than ever. Recently, the Chery QQ-Ezdrive faced competition from a rival offering a “1 yuan” deal, leading to a reduction in its marketing network from 18 offices to 7 regional centers. This suggests a shift from a production-focused model to a more marketing-driven approach. As Chery adapts to the changing market, it must address past challenges, evolve into a modern automobile company, and actively expand its overseas exports. The phrase “water flows downhill, people walk uphill” aptly describes Chery’s journey, offering hope to those following the development of Chinese auto brands. With international brands dominating the domestic market, Chery must find its place in emerging markets rather than rushing into Europe or the U.S., where it might struggle. Chery has already taken steps to enter the Egyptian market, holding successful product promotions in Cairo and planning to export around 1,000 cars this year. It also plans to build assembly plants in countries like Pakistan, Egypt, Venezuela, and Syria, while negotiations with Eastern European nations are in the final stages. Chery’s factory in Iran is also set to start operations soon, and it will produce mini cars in Malaysia with a local partner. If Japanese and South Korean automakers spent over a decade building their brands in Europe, what about China? Chery emphasizes quality as the foundation of a strong brand. “We won’t rush into new markets until our products are ready,” they say. With the car market in flux, cost control and competitiveness have become critical. Layoffs are inevitable, and Chery is streamlining its operations to optimize efficiency. In a period of market turbulence, talent acquisition has become even more crucial. Chery is focusing on refining its talent structure, expanding beyond geography, and becoming a top-tier enterprise. In the near future, Chery plans to move its marketing operations and establish R&D branches in Beijing, Shanghai, and even in Europe and the U.S. The goal is to attract top talent. East China has become a key sales region, and Chery has hired senior marketing experts from Taiwan to strengthen its position in Shanghai. Despite the overall market downturn, Chery’s performance has remained stable, especially in the Shanghai market. Chery Lianhai has even exceeded its annual sales targets. With over 9,000 employees, including 1,000 researchers and many returning PhDs, the Chery Automobile Research Institute is working tirelessly to shape the future of Chinese automobiles. In 2005, Chery plans to launch 3–5 new models, including a crossover and the A21. For Chery, next year could be a turning point. We wish them the best on this long and challenging road ahead.

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