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Chery to limit dealer numbers across its brands

Compiled by ADME Newsroom from 1 source

First reported by AutoTalk Australia · 27 October at 9:09 am

Who's covering this — 1 article

Industry trade: 1

Full coverage

AutoTalk AustraliaIndustry trade27 October at 9:09 am

Chery to limit dealer numbers across its brands

Chery International president Zhang Guibing says each Chery Group brand will get a different number of dealers so the brands don't compete with each other.

Read at AutoTalk Australia →

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← Newsroom/Chinese brandsDealers & retail

Chery to limit dealer numbers across its brands

Compiled by ADME Newsroom from 1 source

First reported by AutoTalk Australia · 27 October at 9:09 am

Who's covering this — 1 article

Industry trade: 1

Chery International president Zhang Guibing says each Chery Group brand will get a different number of dealers
The move is intended to prevent brands from competing with each other
Chery Group has multiple brands that will be allocated different dealer numbers
This strategy aims to maintain a competitive edge in the market

For dealers: Australian dealers should take note of Chery's strategy to limit dealer numbers as it may impact their own business operations and market competition

AI-assisted summary of the coverage below — check the original reporting before relying on specifics.

ADME commentary

The ADME angle

Chery's decision to limit dealer numbers across its brands has significant implications for the competitive landscape of the automotive market

By allocating different numbers of dealers to each brand, Chery is effectively creating a tiered system that will impact how each brand is perceived by consumers

Understanding the Rationale

The rationale behind this move is to prevent cannibalization of sales between Chery's brands, ensuring that each brand has a unique market position and target audience

This strategy also allows Chery to maintain a level of control over its distribution network, which is critical in maintaining profit margins and pricing power

Impact on Market Dynamics

The impact of this strategy on market dynamics will be significant, as it will limit the number of dealers competing for sales in each brand, potentially leading to increased prices and profit margins for dealers

However, it also raises questions about the potential for reduced competition and innovation in the market, as dealers may have less incentive to invest in marketing and sales efforts

Actionable Insights

Australian dealers can take a cue from Chery's strategy by reviewing their own distribution networks and considering how they can optimize their operations to maintain a competitive edge

One decisive action a dealer could take this week is to conduct a review of their current market position and assess whether their distribution network is aligned with their business goals and target audience

Go deeper — ADME analysis

The quick read

Full coverage

AutoTalk AustraliaIndustry trade27 October at 9:09 am

Chery to limit dealer numbers across its brands

Chery International president Zhang Guibing says each Chery Group brand will get a different number of dealers so the brands don't compete with each other.

Read at AutoTalk Australia →