Chery Automobile Product Development Strategy Research

The accelerating increase of GDP in China stimulates the explosive development of Chinese automobile industry. Especially in the field of the saloon car, with the dissemination of family cars and personal cars, the giant potential of cars' market finally make the magnates of car multinationals fail to resist its attraction and join in the competition of Chinese market. Under the condition that the local and multinational brands co-exist, the act of fiercest competition is staging in the Chinese cars' market, with the information of depreciation filling people's ears and new products, new types and new brands fetched to the market.Chery Automobile, as a local brand, is treated as a "black horse" in Chinese automobile industry. The reason why Chery receives the attention from countrymen and even the senior government is that Chery broke the history when countrymen could not make saloon cars. Chery not only has changed the historical actuality, but also creates miracles constantly with saloon cars produced by countrymen ourselves and obtains favors from the consumers. Depending on accurate orientation in the market and product policy, Chery survives from the crack that many brands come out to the market, and takes a place in the low-end market. Meanwhile, Chery's vires of creation brings convulsion in the market once and time. Owning generator with independent intellectual property rights, introducing new types of cars, enriching the product line, and handling unique superiorities and resources, Chery has become a competent rival that cannot be ignored in the mobile market to the magnates of car multinationals.Although the achievements Chery got in its business history is very obvious to all, there still exist certain inferior positions in designing, technology performance and brand vision while compared with some international corporation. Influenced by the trend of car market and the proper culture of Chinese society, Chery is not able to stay still but to find a way to high-end development in the future. In nowadays situation, there are two tasks that Chery confronts and must solve immediately. The first one is how to get rid of that frustrating morass of low-end; the other one is how to gain the competitive advantage in a high-end market. The failures Chinese mobile phone market and local phone producers having accepted indicate that no brand connotation, no creativity and low-end market tactics lead directly to the end of one industry. Considering all those above, this paper focuses on two issues. How can Chery become the real car maker in China? How can Chery gain this competitive advantage by developing appropriate products?Using SWOT, this paper analyses the competitive state of Chery in car marketing. It also analyses the characters of car products and the importance of end properties that the consumers concern about by conjoint analysis. Through ulteriorly comparing the utility value of Chery and its competitors, together with studying in Chery's product development tactics, this paper gives out suggestions and references in order to promote competitive ability of Chery.This paper chooses conjoint analysis as one study method to elicit the thinking process of customers when they are considering buying a car. The analysis of the survey will give support to Chery's product development tactics.