The large Chinese car manufacturer Chery wants to conquer Europe with the new brand Omoda. Vice President Charlie Zhang explains the strategy.
editorial team: There are around 100 car brands in China. What position does Chery have in China based on sales success?
Charlie Zhang: Chery is number 3 in the Chinese market, we are number 1 as an exporter of vehicles.
Until now, Chery was not represented in Europe, now they are coming with Omoda brand cars, and Spain is the first country to do so. Why Spain of all places?
We think people in Spain are more open to new brands, not so fixed. That’s why we believe that we can get off to a good start here. But we will very quickly be represented in other European countries, including Germany. We proceed step by step. We are still learning what makes customers tick in Europe.
“We will be represented in other European countries very quickly.“
Charlie Zhang, Vice President Chery Automobiles
How do customers in China tick?
Completely different. In Europe, cars are leased and rented a lot, and car sharing is also an important topic. The Chinese don’t want to lease, they want to own the car. The car is an important part of his personal life. Home is the priority, then comes work and then your own car. The Chinese identify strongly with their car; it is a part of themselves.
About the person: Charlie Zhang
Charlie Zhang has worked for the Chinese car manufacturer Chery for more than 15 years. He currently holds two positions: on the one hand, as Vice President of Chery Automobiles in the overall group, and on the other hand, as Executive Vice President of Chery International. Previously, Zhang served as general manager of the Central and South America region.
The second point is: the car has to be like a smartphone. A smart device. It has to be very well connected. You have to be able to watch movies, play games, listen to music and much more. The car is a space for entertainment. For Europeans this seems to be less important, at least at the moment.
The third point is: high quality. Chinese love quality. They spend a lot of money on a car and in return they expect high quality. The reason why German cars are so successful in China is their high quality. Made in Germany enjoys an extraordinary reputation. That’s where we want to go: impress with quality.
“The level of automation in the Wuhu plant is 96 percent.“
Charlie Zhang, Vice President Chery Automobiles
And how do you achieve high quality? Do you have the more precise workers in the factory?
No (laughs), probably not. But we have the most modern factories with the most modern controls, the factories are highly automated. The level of automation in the Wuhu plant is 96 percent! That is very high. And as a result, the precision in production is very good. A robot doesn’t get tired or lose concentration. A person could never be as precise in production as he is. And of course we pay attention to high material quality.
“Everything must be prepared as best as possible. Otherwise we don’t even need to compete in Europe.“
Charlie Zhang, Vice President Chery Automobiles
Does that describe the strategy for your success in Europe?
Yes, but not only. It involves several key factors. We listen very carefully to what car buyers want and what they need. We call it “needs and wishes”, that’s what it’s all about. And then we adapt our products. We then have to be quick when making these adjustments in order to be successful. In summary: good quality, at a good price and, last but not least, good service. Everything has to be prepared as best as possible, otherwise we won’t even need to compete in Europe. We are still small and at the very beginning. We want to learn and we want to grow.
To then strike with dumping prices?
Dumping is an ugly word. Dumping sounds cheap. Our cars are not cheap and nor should they be. Our cars should offer the customer at least one comparable vehicle in the competition, but at a cheaper price.
