Chery Automotive Accelerates Its New Energy Strategy Amid Market Expansion and Technological Innovation

Chery Automobile is undergoing a comprehensive acceleration of its new energy strategy, redefined its role in industry competition. In 2024, Chery plans to launch ten new models, with nine of them being electric vehicles, significantly increasing the proportion of new energy vehicles in its product lineup.

On September 25, 2025, Chery Automobile (stock code: 9973.HK) officially debuted on the Hong Kong stock market, opening with an impressive 11.22% rise, bringing its market value close to HKD 200 billion. According to the prospectus, Chery’s new energy vehicle sales are projected to increase by over 265% in 2024 compared to the previous year, making the new energy sector a crucial engine for its growth.

Chery’s journey in new energy development is a classic story of long-term commitment and explosive growth. As early as 1999, before the new energy sector emerged, Chery established a special team for clean energy vehicles. In 2001, its new energy vehicle R&D project was included in the national 863 Program, and by 2003, the first new energy vehicle rolled off the assembly line. In 2009, Chery was awarded the National Science and Technology Progress Award for its achievements in new energy technology, showcasing its strong technical capabilities.

However, the path to new energy development has not been straightforward. In 2023, Chairman Yin Tongyue candidly admitted that Chery was once “rushing to catch up” in the new energy field. He also declared, “Next year, we will not be so modest in our new energy efforts,” marking a significant milestone in Chery’s new energy journey.

In 2024, Chery upgraded its strategy to “boldly pursue new energy,” aiming for explosive sales growth through technological innovation and a diversified product matrix. According to the prospectus and data from Frost & Sullivan, Chery was the only company among the top twenty global passenger car manufacturers to see an increase of over 25% in sales of both new energy and fuel vehicles, as well as in the Chinese and overseas markets in 2024. In China, Chery’s passenger car sales are expected to rise by 56.0% compared to 2023, while its new energy vehicle sales are projected to grow by over 265%. The new energy business is demonstrating strong growth momentum, positioning itself as a vital new growth engine for the company.

As sales rise, so do revenues. From 2022 to 2024, Chery’s revenue increased from CNY 92.618 billion to CNY 269.897 billion, boasting a compound annual growth rate (CAGR) of 70.7%. Net profit also grew from CNY 5.806 billion to CNY 14.334 billion, with a CAGR of 57.1%. This upward trend continued in 2025, with Q1 revenue rising from CNY 54.9 billion in the previous year to CNY 68.2 billion, a growth rate of 24%. The sales revenue from new energy vehicles has become a key driver, increasing from 4.9% of total revenue in 2023 to 21.9% in 2024, and further to 27.3% in the first quarter of 2025, highlighting its role as a robust growth engine.

The explosive growth in Chery’s new energy vehicle sales is attributed to its systematic strengths within the “Technology Chery” framework. Chery adheres to a product strategy of “oil-electric synergy and advantage integration,” creating a differentiated multi-brand matrix that covers various technological routes, including hybrid, range-extended, and pure electric vehicles. This flexible and comprehensive strategy allows Chery to respond to diverse market demands and solidify its leading position in the global new energy competition.

Chery’s deep expertise in internal combustion engine technology has enabled it to achieve rapid breakthroughs in hybrid power systems for new energy vehicles. On April 10, 2025, Chery held a Hybrid Night event in Wuhu, unveiling its “three pillars” of new energy technology. This event comprehensively showcased Chery’s ambitions and achievements in hybrid technology.

During the event, Chery announced an open-source plan for hybrid technology, sharing core technologies to promote a shift from “closed competition” to “collaborative innovation.” This initiative aims to elevate industry standards, optimize the industrial ecosystem, and accelerate the automotive industry’s evolution towards a more efficient, green, and intelligent future. This move not only demonstrates Chery’s confidence in its technology but also helps to foster a more open industry ecosystem, enhancing Chery’s influence within the sector.

According to Frost & Sullivan, Chery’s high-performance hybrid engines boast industry-leading thermal efficiency, with the range-extended electric vehicle engine’s oil-electric conversion efficiency reaching 3.7 km/l, ranking among the best in the industry.

Chery’s multi-brand differentiated strategy positions it to provide optimal solutions for different countries, markets, and user needs. The five passenger car brands under Chery have actively launched new products, with new energy vehicles accounting for 90% of the models introduced in 2024. Since 2023, Chery has successfully launched the iCAR and Zhijie brands, as well as the high-end product series Xing Jiyuan under the Exeed brand, and two new energy vehicle series—Fengyun and Shanhai—under the Chery and Jetour brands. These brands cover a range of models from A to C class, including pure electric, plug-in hybrid, and range-extended electric vehicles, enhancing the new energy brand matrix towards high-end markets.

In 2025, the Fengyun A9L is expected to become Chery’s standout new energy vehicle, with monthly sales exceeding 10,000 units, serving as strong evidence of Chery’s successful entry into the new energy sector. The Jetour Shanhai aims to lead in hybrid off-road vehicles, with the Shanhai T2 and T1 quickly becoming bestsellers in the hybrid box sales rankings. As a mid-size plug-in hybrid SUV, the Jetour Shanhai L7 PLUS received over 27,000 orders within 24 hours of its launch, validating its innovative positioning as a “traveling small RV.”

iCAR, as Chery’s first new energy electric brand, targets “young people” as its market positioning, carving out a unique path. From January to August this year, the iCAR V23 sold 39,979 units, firmly establishing itself as the top seller in the new energy box market and consistently ranking among the top three for eight consecutive months.

Zhijie Automotive, a high-end new energy brand developed in partnership with Huawei, entered its 2.0 era this year. Under the 2.0 strategy, Chery and Huawei have invested over CNY 10 billion and engaged more than 5,000 R&D personnel to create superior Zhijie products and brands. Zhijie Automotive features a new logo and incorporates a more avant-garde design language, conveying a youthful and fashionable brand image that embodies the idea of “exploring infinite possibilities.”

This multi-brand matrix strategy allows Chery to cover a broad price range, catering to various consumer groups. From 2022 to 2024, the average sales price growth rate for Chery’s domestic and international passenger cars was 37% and 19.4%, respectively, indicating the successful initial impact of its brand elevation strategy.

The IPO is a significant milestone for Chery, marking a new chapter in its new energy strategy. According to the prospectus, Chery plans to allocate 25% of the raised funds for R&D of next-generation vehicles and advanced technologies over the next one to three years. This includes 10% for electrification technology and automotive platform upgrades, and 15% for investments in assisted driving and smart cockpit solutions. Furthermore, 20% of the funds will be directed towards expanding overseas markets and implementing a global strategy, providing ample resources for Chery’s globalization efforts.

As Chery embarks on this new journey, it has established a clear development roadmap. For instance, in the exploration of solid-state battery technology, Chery showcased its fully self-developed solid-state battery at the Shanghai International Auto Show this year, boasting an energy density of at least 400 WH/kg, a capacity of no less than 20 Ah, and dimensions of 227 x 165 mm.

In the realm of intelligence, Chery also demonstrated its ambition. In March, Chery held a strategic conference to announce plans for full coverage of intelligent driving systems across all its brands by the end of 2025, including fuel, hybrid, and pure electric models. With 15 years of in-depth development in the field of intelligence, Chery has accumulated a range of advanced technologies, including the Falcon Intelligent Assistance Driving System, smart cockpit large models, humanoid robots, and flying cars. Chery is actively advancing the application of intelligent technology, aiming to empower both fuel and new energy vehicles.

Technologically, Chery has built a communication management platform capable of multi-modal and multi-network collaboration, with its intelligent cockpit system ready to deploy services in nearly 30 countries and regions. In the field of assisted driving, Chery’s technological prowess ranks among the industry’s leaders. According to Frost & Sullivan data, in 2023, 43.8% of Chery’s vehicles were equipped with assisted driving systems, significantly above the global average of 31.0%. This proportion is expected to further rise to 49.6% in 2024, expanding its lead over the global average of 35.6%. This data underscores the remarkable progress the company has made in the commercialization of intelligent driving technology.

Chery is committed to becoming an innovative, globally trusted leader in smart mobility ecosystems and has proposed four key principles for intelligent driving: oil-electric equality, global equality, scene equality, and urban-rural equality. By developing intelligent solutions that cover all vehicle models, Chery aims to provide globally competitive, cost-effective products and accelerate the large-scale adoption of intelligent driving technology. Starting in 2025, all Chery brand vehicles will be equipped with the “Falcon Assisted Driving” system, with over 30 models expected by the end of the year, encompassing all power types including fuel, hybrid, range-extended, and pure electric, enabling global users to share the latest advancements in intelligent driving technology.

Globalization remains a core advantage for Chery. In March 2025, Chery officially entered the “Overseas Strategy 3.0” era, focusing on “technological innovation” and achieving a comprehensive upgrade from product trade to standard and ecosystem output. As the industry transitions from “electrification” to “intelligentization” and “ecologization,” Chery’s listing is expected to yield multifaceted positive impacts on the new energy vehicle sector, including enhancing market confidence, attracting international investment, and promoting valuation recovery.

For Chery, 2025 is a pivotal year. The company plans to launch over 60 new models and versions of passenger cars, including sedans and SUVs, covering both fuel and electric vehicles. The deepening of its globalization strategy will provide broader opportunities for Chery’s new energy transformation. Chery has established R&D institutions in Germany, Spain, Brazil, Mexico, and Malaysia, and has set up production bases in Malaysia, Brazil, Spain, Indonesia, and Uzbekistan.

The automotive industry is undergoing unprecedented changes. For Chery, support from the capital market will be a crucial catalyst for its comprehensive transition to new energy. With sufficient funding, this company, committed to “technology-driven” growth, is poised for even greater breakthroughs in the new energy sector.