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Chery corrects notion about durability of Chinese cars

From sunstar.com.ph| May 26 , 2008 09:25 BJT
A CHINESE car manufacturer has to raise consumer awareness to speed up its sales in the Philippines.

Iseway Motors Philippines Inc., distributor of Chery cars from China, has realized that while the designs and prices of the China-made automobiles are acceptable to buyers coming from all income brackets, there is still a lack of awareness about the vehicles’ affordability and practicality.

This prompted Iseway (pronounced “easy way”) Motors, which became official distributor of Chery cars in the Philippines early this year, to appoint dealerships.

At present, Iseway has at least 13 dealerships in key areas in the country, including one in Mandaue City. It plans to establish 30 more in the next few years, six of which are targeted to open before August this year.

Chery manufactures sedans and sports utility vehicles with prices ranging from P360,000 to P850,000.

It has introduced at least five types of cars in the country, including its “flagship” mini compact sedan. Called QQ model, which is known for its fuel efficiency with an average gasoline consumption of 21 kilometers per liter.

With such mileage, the QQ is the most popular model in the Philippines with already 1,000 units sold.

Last month, Iseway supplied Coca-Cola Bottlers Philippines Inc. 300 red QQ units.

Iseway is targeting to sell 3,000 QQ units this year. It is focusing on people who supposedly want to buy second-hand cars.

Iseway marketing manager Walter Inguito admitted, though, that the company will have to correct the notion among Filipinos that Chinese products are cheap but not durable.

Inguito said during a press conference last week that the quality of Chinese cars is at par with those of other countries.

China’s edge, he said, is its ability to produce a lot because it is enjoying the availability of so much resources, as well as the support of its government.

Chery cars are assembled in China by Chery Automobile Co. Ltd. using European standards, said Iseway dealership network manager Peter Yupangco.

Chery Automobile was founded in 1997 and entered the Philippine market in

May last year.

Inguito said Chery has invested a lot on developing technology according to European standards to come up with good quality cars that can compete with those made in other countries.

"(Our challenge) is a matter of not actually changing the attitude (of the consumers) but more on (highlighting the) practicality of our products and educating the people that practicality matters now, especially with the increasing prices of fuel," he explained.

One definite edge of Chery cars, he said, is the price. He added that people earning about P20,000 to P25,000 a month can afford to get one.

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