Chinese automaker Chery Automobile Co Ltd signed an agreement with Thai company Thai Chery Yarnyon last Friday to assemble SKD (semi-knocked down) packs of Chery vehicles in Thailand. An initial planned capacity is 5000 vehicles annually and will include vehicles such as the Chery QQ compact car and the Chery Tiggo SUV. The output is aimed at both domestic and South East Asian regional markets.
It looks like Chery is taking a multiple-base approach for its ASEAN production centers. It also partnered up with Malaysian company Chery Alado Holdings Sdn Bhd to set up an assembly line at the Oriental Assembler Sdn Bhd’s assembly plant in Johor.
The Malaysian assembly line will also have a capacity of 5,000 units a year and will also produce the Chery Tiggo SUV together with the Chery V5 MPV (known as the Chery Eastar in Malaysia).
Chery is currently the number 1 exporter of passenger vehicles in China, with vehicles from the company making up nearly 50% of China’s vehicle exports in the first 9 months of 2008. It has exported 115,500 vehicles this year so far, and exported 119,800 units during the whole of 2007.