Late last month, Chery Motors Philippines (the exclusive distributor of Chery in the Philippines) launched five new vehicle models in the country, including the Chery QQ3, Chery E5, Tiggo SUV, Fulwin 2, and Q22L. At the same time, Chery Philippines announced its plant construction plan, which will be Chery's third factory in Asia outside of China.
Chery entered the Philippine market in September 2013 with an initial annual sales target of 5,000 units, transporting vehicles to the Philippines via assembly plants in Malaysia and Indonesia. Zhang Guibing, Deputy General Manager of Chery International, noted that 200 million pesos (approximately 27.59 million RMB) have already been invested to improve the existing sales network in the Philippines. Marinela B. Santiago, President of Chery Philippines, stated that there are currently 5 dealerships, which will expand to 10 by the end of this year and further increase to 25 in the future.
Chery Philippines will also achieve local production. The first step involves building a Completely Knocked Down (CKD) factory, requiring an investment of approximately 100 million USD; vehicles manufactured there may also be exported to other Asian countries. Subsequently, a full-scale production plant will be established. Marinela B. Santiago expects this to require at least 30 billion pesos, equivalent to approximately 4.16 billion RMB or 670 million USD. Chery Philippines did not disclose details of the plant construction plan, including the models to be produced or the timeline.
Zhang Guibing stated that Chery is optimistic about the prospects of the Philippine automotive market, noting that by 2015, the Philippines will become a leader among ASEAN countries in attracting investment growth, hence the decision to establish Chery's third production base in Southeast Asia in the country.
