Chery Auto eyes 3 mlnth car next year, suspends IPO

Shanghai, March 31 (Gasgoo.com) Chery Auto plans to have its 3 millionth vehicle roll off the production line by the end of 2011 and build its first overseas vehicle plant template in South America, said Yin Tongyao, Chairman of the Chery Automobile Co., Ltd. at the release conference of its 2 millionth vehicle, Chery Rely X5 SUV.

To reach 3 million units next year

It took the company 93 months to produce 100 million vehicles and less than 30 months to have another 100 million vehicles roll off the line. For the next 100 million vehicles, the company plans to use 20 months or less to finish their production.

"As to China’s auto enterprises, ‘quantity is not important, in stead, the key to development is to enhance the core competitiveness, strengthen the core technology research and development, improve product quality and create powerful brands,” Yin explained.

Chery Auto’s 2010 sales goal is to “ensure 700,000 units and strive for 900,000.” Of the 700,000 sales volumes, the Chery brand will take up 420,000 units, the Karry brand 150,000, and the Riich brand and Rely brand 100,000. In addition, the international companies will take no less than 100,000 units sales. “The four brands will work on the quantity, sales share, networks and other aspects evenly,” Yin said.

To suspend IPO, Chery “not going public”

With more and more enterprises going public, and a good development of the listed companies like Zhongsheng Group Holdings Limited, Will Chery stop its marathon-like listing road?

As for this, Yin said, listing is a double-edged sword. Considering the small financial pressure faced by Chery Auto and the not particularly good A-share market, the company takes this time to improve its business and have no specific plans for the IPO project.