Uruguay-built Chery SUVs sell well in Argentina

Shanghai, July 4 (Gasgoo.com) The Uruguay-based Chery Socma, a joint venture of China's Chery Auto, Argentina Socma Group and Oferol of Uruguay, announced on July 2 that the Uruguay-built Chery Tiggo SUVs have been selling well in Argentina since they entered the market one month ago, reported Economic Information Daily today.

At the promotion event held by Chery Socma for Chery Tiggo's entry into the Argentine market, Zhou Biren, general manager of Chery Auto International Company, said that the launch of Chery Socma marked the first facility operation of China's auto industry in South America. Last year, Chery Auto formed a joint venture with Argentina's Socma Group to assemble SUVs and compact cars in Uruguay for sale in South America's Mercosur auto market.

The Chery Tiggo SUVs built by Chery Socma have been put on sale in Uruguay, Argentina and other South American markets since early June and have been well received by the customers for the Chinese vehicle's excellent price/performance ratio. To expand its market share in South America, Chery Auto has plans to build larger manufacturing facilities in this region's other countries and meanwhile to boost its sales and service networks there.

The first batch of 126 Uruguay-built Chery Tiggo SUVs now sold out in Argentina are 4X2 comfort models, priced at US$12,900. The sales of Chery Tiggo SUVs in the Argentine market are expected to top 1,000 units this year. The joint venture will launch another four Chery Tiggo models in 2009, which are likely to sell about 10,000 units.

The Chery Socma assembly plant has been in production since March 2008, with an annual production capacity of 20,000 units. The joint venture is planning to manufacture more versions of the Chery Tiggo, including an all terrain model, starting in early 2009.