In 2004, Chery Automobile, known as the "black horse" in China's automotive industry, took a significant step forward by launching an ambitious engine production plan. Following the release of three new models the previous year, the company announced its intention to develop a full range of engines under its own brand. This initiative marked a major milestone in Chery's efforts to enhance its core technologies and build a strong independent brand. The plan involved two engine production facilities. One was already operational, while the second, larger plant was set to begin construction soon. This expansion demonstrated Chery’s growing commitment to self-reliance in critical automotive components. The company aimed to produce engines ranging from 1.3 to 4.0 liters, with the newly launched 0.8-liter QQ model featuring a four-valve engine developed in collaboration with AVL, an Austrian engineering firm. This engine was fully owned by Chery and showcased advanced technical capabilities. Feng Wutang, head of the Chery Engine Plant, noted that the small-displacement engine was produced at the company's first engine facility, supported by foreign partners and domestic institutions like Shanghai Jiaotong University. The second engine plant, currently under construction, is expected to be completed by the end of the year. It will have a production capacity of 300,000 units annually and represents a massive investment of 3 billion yuan. Jin Yibo, Chery’s general manager, emphasized that the engine line would cover a wide range of displacements, including 1.3, 1.6, 1.9, 2.4, 2.9, 3.0, and 4.0 liters. Among these, the 1.9 and 2.9-liter engines are diesel variants, while V6 and V8 engines for high-end vehicles are also in the pipeline. The initial plant, established alongside the company’s founding, cost 600 million yuan and had a capacity of less than 1.0 liter, producing around 34,000 units annually. Despite its rapid growth, Chery faced challenges, including patent disputes that affected its reputation. Jin Yibo acknowledged that the company needed not just momentum but a qualitative transformation. He stressed that while exterior and interior components could be sourced globally, the key to success lay in mastering core technologies. Chery’s future strategy focused on developing four core components with independent intellectual property. Industry analysts believe that this move strengthens Chery’s competitiveness and long-term potential. However, integrating global design capabilities with internal core components effectively will be a crucial challenge. If executed well, it could position Chery as a more formidable player in the global automotive market.

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