"Without independent innovation, there would be no Chery, and certainly no future for the company," said Yin Tongyao, chairman of Chery Automobile, in an interview with reporters. He emphasized the crucial role that self-driven innovation has played in the growth and development of the company. This sentiment is also echoed by Geely Automobile, which, as China’s first private automaker, attributes its success to the “three-self strategy†— self-innovation, self-development, and ownership of core intellectual property.
When both Chery and Geely started out, the global automotive industry had already stabilized after several major international restructurings, with large-scale manufacturers dominating the market. Many believed that the car industry was already set, with high technical and financial barriers making it nearly impossible for new players to enter from scratch.
However, in 2001, Chery launched its first product, selling 28,000 units that year and becoming a major surprise in the industry. That same year, Geely surpassed 20,000 units in production and sales for the first time. By 2005, Chery's sales hit 185,000 units, growing by 118% — five times the industry average. Meanwhile, Geely became the first Chinese automaker to participate in five major international auto exhibitions, with annual sales expected to reach 140,000 units, up by over 40%.
Though their rise seemed unexpected, the foundation for independent innovation in China’s automotive sector was already being laid. After more than four decades of development, especially with the rapid growth of joint ventures, China’s auto parts system became increasingly complete. Self-developed companies could now integrate domestic resources at lower costs. Internationally, access to technology had improved, and costs had dropped. Domestically, large automotive groups and joint ventures trained a wealth of technical and managerial talent, while many overseas students returned home eager to start their own businesses. This gave Chery and Geely the opportunity to tap into global talent.
At the same time, China’s car market grew rapidly, from 500,000 units in 1998 to 2.31 million in 2004. Private car ownership became the main driver of consumption since 2001. With strong demand and considerable profit margins, the rise of independent brands was not just possible — it was inevitable.
While external conditions were important, true success came from within. It was the courage and efficiency of independent innovation and development that truly defined the success of these companies. Li Shufu, chairman of Geely, once said that with their own R&D capabilities, Geely could "cut the cake" in the global automotive market. Technology research and development have always been central to both companies. Their annual R&D investment reached 10% of sales, attracting top talent from both inside and outside China. In Chery, one-third of employees are engineers, while Geely boasts four members of the Chinese Academy of Sciences and Engineering, along with 38 doctoral and postdoctoral researchers and 292 senior engineers.
Even though the automotive industry has entered the era of global sourcing, core technologies cannot be bought. After years of effort, Chery and Geely have delivered impressive results. Chery introduced China’s first domestically developed engine brand, marking a breakthrough in high-performance automotive engines. The Chery Automobile Engineering Research Institute was designated as a National Energy Conservation and Environmental Protection Vehicle Technology Research Center by the Ministry of Science and Technology. It also leads research on hybrid car technologies and ISG engines.
Over the past eight years, Geely has filed 7 invention patents, 30 utility model patents, and 37 design patents, applied for 53 new technologies, and achieved 13 scientific and technological breakthroughs. Its self-developed automatic transmission became the first of its kind in China with independent intellectual property rights.
Independent innovation not only helped Chery and Geely establish themselves firmly in the domestic market but also provided them with the tools to expand globally. Both companies are now key players in China’s auto exports, exporting not just vehicles but also their brands and technologies, reshaping traditional perceptions of "Made in China."
Currently, Chery can produce 350,000 cars and 400,000 engines annually, while Geely has an annual capacity of 200,000 complete vehicles, 200,000 engines, and 150,000 transmissions. Both have become mainstream players in China’s automotive industry. And independent innovation will continue to be their driving force. Li Shufu confidently told reporters: “We want Geely to travel all over the world, and not let cars from all over the world run through China.â€
Reporter: Jiang Fan
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