Auto industry stalwart Chery needs to discard its traditional image to take the lead in the New Energy Vehicle (NEV) race.
In the latter half of 2023, Chery, a renowned automaker, embarked on a significant transformation, collaborating with Smartmi's CEO, Su Jun, to establish the new brand iCar. The strategic partnership aimed to transition Chery's focus towards the NEV (New Energy Vehicle) business within less than six months.
During the iCar brand event, Yin Tongyue, Chery's chairman, emphasised the importance of youth, mentioning the word 22 times in his ten-minute speech. The event unveiled two new product series: the electric off-road vehicle model iCar V23 and the off-road multipurpose vehicle (MPV) model iCar X25. These additions expanded iCar's product lines to a total of three, each tailored to target different market segments.
The collaborative model allowed Chery to take the lead in development, outsourcing certain aspects such as product design. This approach presented a more cost-effective avenue for Chery's transition to NEVs. Su Jun, now serving as the chief product officer of iCar, is responsible for devising innovative designs.
The success of this strategy is evident in the sales performance of the iCar 03, the brand's first model. In February, the iCar 03 exceeded Chery's sales expectations, necessitating overtime work to expand production capacity. In the first ten days of April, 2,113 units of the iCar 03 were sold, marking an 81% increase compared to the previous month. By the end of the month, iCar had sold a total of 10,000 units of the iCar 03.
As Chery continues its transition from reliance on fuel-powered vehicles to embracing the electrification trend, the workday at the company has deviated from its previous adherence to an eight-hour workday. Stricter attendance oversight has been implemented, and overtime has become more common since the end of 2023.
In an internal address at the end of 2023, Yin Tongyue announced Chery's comprehensive benchmarking of Huawei, both in organisational structure and culture. Chery is learning from Huawei's relentless pursuit of product and technology perfection. This collaboration is expected to aid Chery in developing its unique automaking style, applicable across various vehicle models.
However, some details regarding the co-founder of the iCar brand and the role of the Chief Product Officer remain undisclosed.
The strategic approach in iCar prioritises off-road capabilities, targeting distinct market segments. Su Jun's philosophy on creating popular products emphasises convergence and divergence. This approach seems to be paying off, as iCar continues to gain traction in the competitive automotive market.
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