Chery Group, one of the “four small” companies, has finally taken the first step in the expansion of the other places. According to the official website of the Henan Provincial Government, Chery has chosen Kaifeng, Henan Province, as its strategic location city, and plans to build a new automobile manufacturing base. The direction of the product is directed to mini-cars and light trucks.

Recently, Xu Guangchun, secretary of the Henan Provincial Party Committee and director of the Standing Committee of the Provincial People's Congress, met with Yin Tongyao, chairman and general manager of Chery, in Zhengzhou. The information from the website of the Henan Provincial Government stated that “According to the company’s development strategy, Chery chose Kaifeng as its strategic location city, fixed assets investment of 1.773 billion yuan, and the construction scale is to produce 200,000 mini-vehicles, 80,000 light trucks and agriculture annually. Machinery production base."

The description of “Strategic Cities” highlights that Chery will use Henan as its “bridgehead” for its expansion in other places. With a population of nearly 100 million, Henan is a national raw material base and is also the hinterland of the Central Plains. It has abundant resources and huge market potential. At present, although Henan has a trailer, Nissan, Yutong, Haima, Shaolin and other automobile companies, but the overall strength of the automotive industry is not strong. Yin Tongyao stated that the layout of Kaifeng was in line with Chery’s strategic needs of “to produce cars in places where cars are needed”.

However, the Ministry of Industry and Information Technology has already made clear this year that car companies building new plants in different places need to be premised on mergers and acquisitions. Chery's advancement into Henan did not merge with local car companies, so it also left suspense. Chery has no public statement about this. However, automotive analyst Zhang Zhiyong believes that relative to the constraints of the Ministry of Industry and Information Technology, the desire for local investment promotion and expansion of the automobile industry is stronger, and Chery has little room for mergers in China, and Henan provides space for its expansion. “This expansion opportunity is not Avoid it. If it is not Henan, it will also be in Hebei or other provinces and cities."

It can be seen that Chery’s main push in Henan is the new brand of Karry minicars. Recently, Kai Rui Company also put its third model Youyou in Zhengzhou on the market, showing its emphasis on the local market. The new Kaifeng base will also provide sufficient capacity for the future development of Kairui.

At the same time, Chery’s new Kaifeng base will also produce light trucks. Chery Automobile purchased Wuhu FAW Yangzi Automobile Manufacturing Co., Ltd. in 2006 and changed its name to Chery Commercial Vehicles (Anhui) Co., Ltd., and obtained the capacity to produce 30,000 chassis and 2,000 buses per year. It took the first place in the commercial vehicle sector. step. However, according to information published by the China Association of Automobile Manufacturers earlier this year, Chery’s commercial vehicles have been in a state of “zero output” during 2007-2008. This time Kaifeng layout, Chery Group or will re-make up for its commercial vehicle disadvantage.

However, it will also be a cold water for the long-rumored "River of Love" [ China's auto industry reshaping mergers and acquisitions ]. Chery and JAC have their own strengths in passenger cars and commercial vehicles, but with the development of bidirectional comprehensive automobile groups, their independence is also increasing. Zhang Zhiyong believes that it may be better for Chery to expand and seek new space in different places, because if it is a long integration with Jianghuai, it is also a waste of resources.

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