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2013 just pass, China Automobile Industry Association and automobile companies start forecasting sales of 2014. Geely is pessimism, but Chery is optimism.
China Automobile Industry Association publishes its forecast at 2013 Year Media Conference last week that it forecasts 23.85 to 24.29 million demand of entire Chinese automobile industry 2014, which means 8% - 10% growth over last year.
Geely sales goal made behind the industry average figure. The company published its bulletin yesterday that its 2014 sales goal locks 580 thousand, which 6% growth over 2013.
Compared with cautious Geely, Chery which is another mainstream Chinese owned brand holds optimism expectation for 2014 automobile industry growth. "We sell 300 thousand domestically last year. Our 2014 sales goal is 360 thousand, which has 20% growth. Majority sales are contributed by Arrizo 7 and new Tiggo 5." HUANG Huaqiong, general manager of Chery sales company told reporter that after several years' adjustment, Chery has completed its transition. It becomes an integrated system with one brand, one system and one channel, which will help this year sales goal achieve.
Chery has not performed well enough in the past year. Its sales of 2013 were 300 thousand. If plus overseers market, Chery exports almost 20 thousandoverseas. Its total sales are less than 500 thousand, which 18% less than 2012 sales. However, Geely performs well in 2013. The company sales of 2013 reaches 549.5 thousand, which has increased 14% than 2012 sales and much better than Chery did.
Similar with Chery, Geely adjust its brand as well. SUN Xiaodong, former Shanghai Volkswagen general manager, joined Geely. After 9 months, he takes general manager of Geely sales company. He integrates Geely existed resource, and walk to "One Geely" from several brands strategy now. "We will publish our brand adjustment result around Beijing Auto Exhibition 2014." SUN Xiaodong told reporter. The after Oct, Geely will explore its marketing strategy change by "Costa Trip" activity. It steps towards to marketing around company instead of around products.
Geely and Chery are 2 out of 11Chinese owned automobile companies. They experience transition period and stuffer during transition period.