Vogon Today

Selected News from the Galaxy

Economic Scenarios

The Jetour case: an example of how the Chinese car wants to conquer the world, and it will succeed

Jetour, a subsidiary of Chery Automobile that focuses on developing electric vehicles, aims to sell half of its cars outside China over the next four years by leveraging the parent company's manufacturing capabilities and sales network.
Jetour , which mainly develops sport-utility vehicles (SUVs), expects to sell 600,000 units in overseas markets in 2027, general manager Li Xueyong said.
“We focus on SUVs that sell for about 150,000 yuan ($21,774, about €20,000),” Li said in an exclusive interview Tuesday on the sidelines of the Shanghai Auto Show. "Jetour is highly competitive in this segment and consumers around the world who wish to purchase SUVs at this price level will consider our products as a prime choice." No European company has an electric car with Jetour's qualitative characteristics at the price it is able to offer. The moment it enters the Old Continent market, it will take it home.
Founded in 2018 to take advantage of accelerating electrification in China, Jetour delivered more than 180,000 units in 2022, an increase of 17% year-on-year.

The company aims to collectively sell 400,000 units this year, with at least 120,000 of them outside China, said Li, who is also a vice president of state-owned Chery, based in east China's Anhui province, said Jetour hoped to support a high level of growth to achieve the goal of delivering half of the 1.2 million units in 2027, using the production facilities, sales network and image of the parent company.

As of 2027, Jetour's overseas sales will account for half of its total deliveries, Li added. “We are defining a growth plan for international markets, rather than just the Chinese market”. The company is currently present in 35 countries, particularly in South America, Africa and the Middle East. It will make a foray into 10 more countries this year, including the European markets of Italy and Turkey, according to Jacky Chen, head of international operations at Jetour.

Chen said Jetour will develop left- and right-hand drive models to expand its presence globally. Jetour, which has three production bases overseas, including one in Germany, is planning to set up two more plants outside China this year.
“Jetour has set very high sales targets, which reflect the automaker's ambitions to compete for global market share,” said Chen Jinzhu, CEO of consultancy Shanghai Mingliang Auto Service. "It is the best example of China's growing productive power in the automotive industry."

jettour

Jetour is developing more than a dozen new models, which are likely to hit the market in the next couple of years. Among them, six or seven city SUVs, three or four off-road vehicles and two pick-ups. General manager Li said some of Jetour's SUVs, equipped with smart features, allow cars to travel autonomously in convoys, as long as they're headed to the same destination, adding that technologies used in production EVs Chinese are superior to their European-made counterparts.
China is likely to overtake Japan as the world's top auto exporter this year, with industry executives forecasting shipments of up to 4.5 million vehicles, up 45% from 3.11 million units for the year last.
EV deliveries in China, which is also the world's largest market for battery-powered vehicles, are expected to reach 8.8 million units in 2023, up 35 percent from a year, according to UBS analyst Paul Gong. last.
“The large demand for EVs among Chinese consumers benefits domestic automakers in developing products with an edge [over international rivals] in terms of quality and technologies,” Gong said. “The long-term outlook for the industry is rosy.” These are economies of scale which once benefited European companies, including, or above all, Italian ones, which relied on strong national sales to support international development. Today, the austerity policies of the last 20 years and the errors in the management of industrial policies have destroyed this possibility which Chinese companies instead take advantage of to the nth degree. It is now only a matter of time before we also see the European markets dominated by Chinese companies: after all, Dr in Italy sells Chery products under its own brand…


Telegram
Thanks to our Telegram channel you can stay updated on the publication of new articles from Economic Scenarios.

⇒ Register now


Minds

The article The Jetour case: an example of how the Chinese car wants to conquer the world, and will succeed, comes from Scenari Economici .


This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/il-caso-jetuor-un-esempio-di-come-lauto-cinese-vuole-conquistare-il-mondo-e-ci-riuscira/ on Fri, 21 Apr 2023 19:27:22 +0000.