Chery Cars To Enter The Russian Market Entry Mode Research

China auto industry already has above 50 years history since it was established. During this period of time, China auto industry has grown dramatically as it started to get more and more involved into global auto market no matter from the perspective of the degree of integration of supply chain or the quantity and capability of players in competition on each tier. At the meantime, China is changing from importing cars to exporting cars. As the backbone of exporting business, Chinese domestic carmakers are actively developing the oversea markets and looking for opportunities for growth although their competency are not as strong as global carmakers.Chery, as the representative of Chinese domestic carmakers, has produced more than 1.5 million cars within its short ten years history. It started to develop oversea market from 2001. Although Chery did not get much sale in European and American markets, it continued getting success on emerging markets. However, the recent obstacles Chery met in Russian market had people re-consider the strategies Chery took on its oversea market. The selection of entry mode, as the first step of oversea strategy, had got more attention.The article combined the characteristic of Russian auto market environment and Russian auto industry with the practice of Chery business and systemically analyzed the risks Chery would met on Russian market and the entry modes Chery would possibly take. Evatually, the optimal entry mode was finalized and the evalution and suggestion were given based on the strategy Chery took in reality. The results were summarized as following:Firstly, the different models of oversea market entry mode selection were summarized. Based on that, the upgrade model was promoted which provided the theory for further analysis.Secondly, based on the upgrade model, the article analyzed the Russian institution risks, the Russian Auto industry and the core competency of Chery Motor which led to the optimal entry mode for Chery.Thirdly, through the above analysis and summary, the article tried to evaluate the strategies Chery took in reality and provide the suggestion for its next step action.The article explained the problems combining theories with practice. The result can be widely applied. Chinese domestic carmakers can learn the good and bad of Chery on Russian market as well as use this article for their reference when they deal with the selection of entry mode to oversea market.