At present, the overseas expansion of China's auto industry is not only a trend of industrial upgrading but also a core area of focus in the capital markets. Against the backdrop of global supply chain restructuring and the transition to electrification, automakers with sustained overseas capabilities that can penetrate high-barrier markets are seen by investors as deserving higher valuation levels.
In the first three quarters of this year, China’s vehicle exports reached 4.95 million units, an increase of 14.8% year-on-year. In September alone, vehicle exports amounted to 652,000 units, representing a robust year-on-year growth of 21%.
Specifically, Chery’s performance in overseas markets has been particularly impressive, significantly outpacing the overall export growth rate of China’s automotive industry. Data shows that in September, Chery Group achieved a record-breaking monthly export volume of 137,624 units, a year-on-year increase of 26.2%. From January to September, Chery Group’s cumulative exports totaled 936,428 units, reflecting a 12.9% year-on-year increase. According to official statements, on average, one “Chery-made” vehicle was shipped overseas every 25 seconds.
From an investment perspective, Chery’s achievements in overseas expansion serve as a representative case for assessing the potential of China’s automotive industry going global. Recently listed on the Hong Kong Stock Exchange, Chery’s product portfolio, technological strengths, and market strategies have been disclosed, providing further insights worth exploring.
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The 'value' of export performance: from scale leadership to value breakthrough
When evaluating Chery’s export results within the broader industry context, the true 'value' of its performance becomes even more apparent.
Although other Chinese automakers have experienced rapid growth in overseas sales, Chery’s steady rise in sales has demonstrated strong economies of scale. According to data compiled by Yiche based on the China Passenger Car Association’s September narrow passenger vehicle export figures (including complete vehicles and CKD kits), Chery significantly outpaced its competitors, with export volumes double that of the second-largest exporter, firmly securing its position as the industry leader. Specifically, Chery’s Tiggo 7 and Tiggo 5X models continued to dominate the top two spots in September, solidifying their status as enduring leaders in the market.
When viewed over a longer timeline, Chery has continuously achieved breakthroughs in its overseas automotive ventures, with remarkable results. Data shows that Chery has ranked first in China's passenger vehicle exports for 22 consecutive years and has created three industry milestones this year alone. In addition to becoming the first Chinese automaker to exceed 130,000 units in a single month and the first to surpass 100,000 units per month for five consecutive months, Chery is also the first Chinese brand to achieve cumulative exports of over 5 million vehicles.
This indicates that Chery’s leadership in overseas markets is not the result of short-term, sporadic growth but rather the outcome of more than two decades of global operations, fully validating the competitiveness of its products and positive customer reputation. For investors, Chery’s sustained growth in overseas markets demonstrates high certainty, with the potential to continuously expand its share of the international market.
Furthermore, the “value” of Chery’s overseas performance is also reflected in structural market breakthroughs. Beyond North Africa, the Middle East, and Latin America, Chery has shown strong momentum in the European market, selling 145,000 vehicles from January to September, representing more than a twofold increase.
In terms of sales volume, although Europe does not match the scale of China or India, its unique market characteristics make it a strategic high ground fiercely contested by global automakers.
As the world's most mature and competitive automotive market, Europe is also characterized by high regulatory and high-entry standards, with extremely stringent requirements for vehicle safety, environmental protection, and quality. Additionally, local consumers have deeply ingrained trust in brands with “Western origins,” while Chinese brands are often still associated with the “cost-effective” label. Thus, for an automaker to establish itself as a premium player in Europe, breaking through in terms of brand perception is key.
Chery’s exponential sales growth and rapid penetration of the European market underscore its brand influence, product quality, and technological advantages.
From 2022 to the first quarter of 2025, Chery’s overseas revenues were RMB 30.387 billion, RMB 77.06 billion, RMB 100.897 billion, and RMB 26.289 billion, respectively, accounting for 32.8%, 47.2%, 37.4%, and 38.5% of total revenue. This reflects a continuous expansion trend overall.
It is foreseeable that by deepening its presence in Europe’s high-margin markets, Chery’s overseas revenue structure will evolve toward higher value-added segments, directly translating into exceptional returns on the profit side. Future overseas performance is expected to show stronger growth potential.
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An Analysis of Growth Logic: The Moat of 'Technology + Localization'
In the author’s view, the core reason Chery has been able to go global and restructure the global automotive value chain lies in the dual drivers of 'technology defining standards' and 'localization reconstructing ecosystems.'
From an industry perspective, on one hand, the global automotive industry is in a new development cycle, accelerating its transformation toward electric powertrains, intelligent vehicles, and low-carbon energy. This implies that competition is no longer purely about hardware but rather a contest of standards, escalating to a higher dimension of technological leadership for话语权.
On the other hand, with the global market environment being complex and ever-changing, adapting to the varying demands of regional markets and policies is essential. Whether Chinese brands can truly integrate into these markets and establish diverse globalization pathways will be the key determinant for sustaining vitality abroad and breaking through performance ceilings.
Specifically, in Chery’s case, its globalization efforts are not merely about financial investment but have also achieved technology exportation and global standard alignment.
First, by implementing the 'Yaoguang 2025' strategy, Chery has established five core technology pillars: the Mars Architecture, Kunpeng Powertrain, Lingxi Intelligent Cockpit, Falcon Autonomous Driving, and Galaxy Ecosystem. These provide a solid technical foundation for developing products with global market competitiveness.
Furthering its overseas expansion, it is understood that Chery, supported by eight global R&D centers covering key markets such as Germany, Spain, Brazil, Mexico, and Malaysia, adheres to the 'Four Development' strategy, which includes regulatory compliance development, product adaptability development, competitiveness development, and differentiation development.
For instance, Chery has enhanced cooling systems for the high-temperature environments of the Middle East, upgraded body corrosion resistance standards for the high-humidity regions of Southeast Asia, and optimized chassis stability for the mountainous roads of South America. Chery stated that the launch models for the German market—the Omoda 5 all-electric vehicle and the Jaecoo 7 plug-in hybrid SUV—were locally fine-tuned at its German R&D center.
Notably, Chery's Star Era ES model recently received a five-star safety rating from the European NCAP. With this, Chery now has a total of 51 models that have earned various five-star safety certifications globally, making it the Chinese brand with the most global five-star safety accolades.
Therefore, based on the 'four developments,' Chery is able to proactively avoid compliance risks and market entry barriers while enhancing product penetration by aligning product attributes closely with consumer demands. This approach ensures sufficient competitiveness in regional markets and provides support for business growth.
Building on the aforementioned product innovations, Chery has comprehensively penetrated overseas markets through its localization strategy. In terms of human resources, it has established a localized organizational and talent system. On the manufacturing front, factories in Egypt, Indonesia, and elsewhere are gradually being set up. Additionally, Chery has formed a joint venture with Spain’s EV Motors, leveraging the influence of the EBRO brand to export its technological advantages, and has established a production base in Barcelona, making it the first Chinese automaker to produce vehicles in Europe.
Thus, it is not just technology; Chery's global network of R&D centers, production capacity, and even distribution channels constitute an irreplicable barrier to its overseas expansion.
Moreover, the cross-sector extension of intelligent technologies has further broadened Chery's moat. The first humanoid robot of Chery's 'MoJia' series, 'MoYin,' has passed three core certifications: EU CE-MD (Mechanical Safety), CE-RED (Radio Equipment), and EN18031 (Cybersecurity and Data Protection). It has become the world’s first humanoid robot to meet EU standards in both hardware and software.
From automobiles to robots, this transformation is fundamentally rooted in Chery's technological accumulation in areas such as assisted driving, smart cockpits, large AI models, and sensor hardware. This seemingly cross-industry layout achieves technological synergy and reuse, which can also feed back into the intelligent upgrading of automobiles, not only reducing marginal R&D costs but also constructing a unique technological barrier.
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In the wave of globalization, reevaluating the value potential of Chinese automakers.
For investors, Chery is transitioning from being the 'export champion' to becoming a 'global industrial ecosystem builder.' The value released during this transition represents the core source of long-term excess returns for investors.
From a market perspective, one key investment highlight for Chery lies in the high-quality earnings growth driven by increasing market penetration in regions such as Europe.
Europe, as the largest overseas new energy market, recorded a new energy penetration rate of 20.8% in the first quarter of 2025, up 3.8 percentage points year-on-year. The penetration rates for pure electric and plug-in hybrid models were 14.5% and 6.2%, respectively. Driven by policy support and growing demand, there remains significant room for further increases in the penetration rate.
Chery, leveraging its localization strategy, has paved the way for the introduction of subsequent new energy products. According to plans, Chery aims to establish 45 sales outlets in Europe by the end of 2025, expand to 100 by 2026, and further increase to 365 in the medium term. This clear channel expansion provides a solid foundation for future sales growth. By focusing on high-premium markets, Chery is expected to deliver higher profitability forecasts to the capital markets as penetration increases.
Additionally, Chery’s simultaneous expansion into other markets further reduces risks associated with overseas operations. The company can effectively hedge against cyclical fluctuations in individual regional markets, diversify its revenue sources, and benefit from both the new energy transition in mature markets and explosive automotive growth in emerging markets.
According to the prospectus, 20% of the net proceeds from Chery’s IPO will be allocated to expanding overseas markets and implementing its globalization strategy. This indicates that expanding its global footprint is one of Chery’s core priorities, making the execution of these plans and the realization of performance foreseeable. For investors, Chery’s overseas business is marked by steady growth and manageable risk.
Taking a broader view, Chery offers a rare value proposition to the capital markets.
Chery combines a strong foundation in internal combustion engine vehicles with robust momentum in new energy transformation. Additionally, it has established a closed-loop system encompassing “technology-brand-supply chain,” creating barriers to entry in globalization. This positions Chery as an ideal investment vehicle for capturing long-term development opportunities in China’s automotive industry.
Finally, in terms of valuation, Chery’s current PE TTM stands at 10.10. Given the recent overall correction in the automotive sector, this valuation level appears relatively undervalued.
Chery’s revenue and profitability have consistently improved, with revenue reaching RMB 269.897 billion and net profit amounting to RMB 14.334 billion in 2024, reflecting the stable operating style typical of traditional automakers. The dual focus on domestic and international markets allows investors to evaluate Chery through the lens of global automotive valuations.
More importantly, Chery possesses a strong technological DNA and has established a leading technical system centered on electrification and intelligence. This also supports its valuation framework with the logic of being a “new force.” In this context, a PE ratio of 20-30 might represent a more reasonable level for Chery. Should synergies between automobiles and robotics achieve commercial success, its valuation could even approach that of technology companies.
Thus, Chery possesses a distinct investment core compared to its peers, making it a rare “value + growth” dual-attribute stock in the Hong Kong market.
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Conclusion
In summary, Chery Automobile's remarkable achievements in overseas markets are the inevitable result of its more than two decades of commitment to a globalization strategy, deep cultivation of technology research and development, and localized operations. This clearly demonstrates that China's automotive industry globalization has evolved from simple trade exports to comprehensive outputs encompassing technology, brands, and ecosystems.
From an investment perspective, Chery’s case is highly exemplary, proving that only automakers with solid technological foundations, deep localization capabilities, and sustainable globalization strategies can weather cycles and reshape the global automotive industry value chain. In the future, the global competition among Chinese automotive brands will be a long-term contest of technological systems and ecosystems.
