Executive Summary

Chery Automobile has been building its overseas presence for 24 years since its first export in 1999. In 2025, full-year exports reached 1.344 million vehicles, keeping Chery in first place among Chinese passenger-car exporters for the 23rd consecutive year and pushing cumulative exports above 6 million units. In September 2025, Chery listed on the Hong Kong Stock Exchange under stock code 9973.HK, raising about US$1.2 billion in what became the year's largest automotive IPO in Hong Kong. About 20% of the proceeds were allocated specifically to overseas-market expansion and globalization execution.[1][2]

In 2026, Chery formally announced entry into its Globalization 2.0 phase. The strategic focus is shifting from scale exports to full ecosystem integration. Its operating idea, In Somewhere, For Somewhere, Be Somewhere, points to a closed-loop localization model across R&D, manufacturing, brands, supply chain and talent. This upgrade comes as Chery's exports to Europe rose 170% year over year in Q1 2026, while new-energy exports rose 729%, showing that its overseas matrix is expanding from emerging markets into mainstream European and American markets.[3][4]

I. Strategic Evolution: A Three-Stage Globalization Path

Chery's overseas value-chain layout was not built overnight. It has developed through three clear strategic stages.[5]

Stage 1, 1999 to 2013: product export. Chery mainly used direct complete-vehicle exports to enter emerging markets in the Middle East, South America and Africa. There was little manufacturing localization, and the core competitive advantage was price. During this stage, Chery became one of the earliest Chinese automakers to export complete vehicles, CKD kits, engines and complete production equipment.[6]

Stage 2, 2014 to 2020: factory-led globalization. Chery used KD assembly plants to enter Brazil, Russia, Iran and other key emerging markets. This created a local-manufacturing system centered on CKD assembly, while local dealer networks and supply-chain collaboration gradually formed. During the same period, Chery established a European R&D center near Frankfurt, laying the groundwork for entry into higher-regulation markets.[7][5]

Stage 3, 2021 to present: technology export and full ecosystem integration. After completing its mixed-ownership reform, Chery used the Yaoguang 2025 strategy as its top-level framework, accessed global capital through the Hong Kong listing, and pushed R&D, manufacturing, brands and supply chain overseas as a connected system. The strategic benchmark is to become a global technology automaker comparable to Toyota plus Tesla. In 2026, Chery chairman Yin Tongyue stated that overseas expansion would prioritize existing manufacturing capacity and light-asset cooperation rather than large-scale heavy investment in new plants.[8][9]

II. Overseas R&D Network: A 1+7+N Collaborative Innovation System

R&D localization is the front end of Chery's overseas value chain and one of its main sources of differentiation.[4]

R&D Center Layout

Chery has built a global collaborative innovation network described as 1+7+N: Wuhu headquarters as the core, eight regional R&D centers around the world, and the Kaiyang Laboratory as a bridge to more than 100 leading universities.[4]

The eight R&D locations include:[10]

  • China: Wuhu, Shanghai and Hefei.
  • Overseas: Raunheim in Germany, Barcelona in Spain, Brazil, Mexico and Malaysia.

European R&D Center

Chery's European R&D center has operated in Raunheim, Germany, since 2018. It has about 85 employees from 16 countries and is tasked with adapting China-developed vehicles into products European customers will buy. Work covers exterior design, interior-material optimization and localized software systems. Chery also cooperates closely with suppliers such as Bosch and Schaeffler and uses German production equipment extensively. In April 2026, Chery established its first overseas regional operations center and research institute in Barcelona, creating a stronger interface with European regulations and standards and planning a significant expansion of research space.[7][4]

Core R&D Capabilities

As of March 2025, Chery had 14,400 R&D employees, with more than 23% holding master's degrees or above. At group level, technical R&D personnel exceeded 30,000. The technology system covers the Mars vehicle architecture, Kunpeng powertrain including hybrid engines with thermal efficiency up to 48%, Lion smart cockpit, Dazhuo/Falcon intelligent-driving systems and the Galaxy ecosystem.[11][12][10]

III. Overseas Manufacturing Network: Multiple Models for Global Capacity

Manufacturing Models

Chery uses three flexible overseas manufacturing models:[10]

  1. Contract manufacturing and CKD/SKD assembly: local partner plants assemble Chery kits, enabling fast rollout, low cost and controlled risk.
  2. Joint-venture plants: Chery and local partners share investment risk, as in the EBRO project in Spain.
  3. Wholly owned or acquired plants: Chery directly controls capacity, as in the acquisition of the former Nissan Rosslyn plant in South Africa.

Major Global Manufacturing Bases, 2026 Status and Plans

RegionCountry / plantModelCurrent capacity / status2026-2030 plan
EuropeBarcelona, Spain, EBRO joint ventureJV plus CKDProduction started, initial scale about 50,000 unitsTarget 200,000 units per year by 2029[13]
Europe, proposedFrance and other countriesJV under discussionNot finalizedExploring idle European capacity[8]
AfricaRosslyn, South Africa, former Nissan plantAcquisitionFormally taken over in July 2026, upgrade underway[14][15]Production from mid-2027, serving Southern Africa
Southeast AsiaThai Binh, VietnamJV plantConstruction completing in 2026, phase-one capacity 30,000 to 60,000 units[16]Target 200,000 units per year by 2030, US$800 million investment[17]
Southeast AsiaThailandWholly owned subsidiaryProduction from Q4 2025, annual EV capacity 28,000 to 30,000 units[18]About 85% to 90% for Thailand, remainder exported to Australia and Europe
Southeast AsiaMalaysiaWholly owned subsidiaryNew plant investment of MYR 2.2 billion, annual capacity 100,000 units[17]Regional production and export hub, already exporting to Brunei
Southeast AsiaIndonesiaWholly owned subsidiaryICE and PHEV production base under rollout[19]Full ASEAN model coverage
South AmericaBrazil plantSelf-built, ethanol-hybrid adaptation150,000 units per year at full capacity[20]Most mature South American manufacturing base, focused on ICE and hybrids
South AmericaMexicoKD assemblyAbout 80,000 units per yearServes North and Latin America
Middle East / RussiaRussia, three KD sitesContract manufacturingNo direct plant ownership, uses local idle capacity[21]Gradual reduction in Russia dependence; expected to be negligible by 2027[12]

By 2026, Chery's overseas complete-vehicle plant capacity was about 350,000 units per year. Combined with KD kit exports, the overall overseas sales target was roughly 1.5 to 1.6 million vehicles.[16]

IV. Brand Matrix: Dual-Track Domestic and Overseas Operation

Chery operates a dedicated overseas brand system that differs from its domestic naming structure and positions brands by region and segment.[22]

Overseas brandDomestic relationTarget marketPositioning
OMODA & JAECOORelated to JetourGlobal, Europe as coreUrban fashion SUV plus rugged off-road; one of the UK's fastest-growing brands[4]
LUXEEDExeedEurope / Middle East premiumPremium intelligent electric vehicle
LEPASChery main-brand NEVEuropean mass marketEntry-level family NEV
iCAURiCARGlobal youth marketTrend-oriented EV; iCAR V27 global debut in Dubai[22]
CHERYCheryEmerging marketsValue SUV and sedan lineup, core in Middle East, Africa and South America
EXEEDExeedMiddle East / Southeast AsiaPremium SUV
JETOURJetourEurope / Southeast AsiaTravel and off-road orientation; deliveries started in Poland[1]
DELIVANChery Commercial VehicleEurope, UK firstElectric light-commercial vehicles and lifecycle service ecosystem[23]

V. Supply Chain Globalization: From Vehicle Exports to Industry-Chain Exports

1. Core Suppliers Following Chery Overseas

Chery is bringing Chinese suppliers in power batteries, thermal management and intelligent cockpits overseas together with its vehicle business, creating an export model for vehicle plus key components. It is also deepening strategic cooperation with CATL, jointly developing models compatible with battery-swap networks and introducing the chocolate battery-swap system overseas.[24][25]

2. Digital Supply-Chain Management Platforms

Chery has developed the Haixingyun industrial internet platform, supporting intelligent production and smart logistics for more than 2,000 surrounding component companies. It has also built the Ruijing e-commerce procurement platform, similar to an industrial procurement marketplace, with more than 28,000 domestic and overseas suppliers, more than 850 material categories and 5 million SKUs. In 2023 alone, centralized procurement reduced costs by RMB 2.2 billion.[26]

3. Near-Site Supply Chain Localization

Chery's supply-chain strategy explicitly calls for near-site component support, meaning supplier clusters around major manufacturing bases. The Barcelona plant has created more than 1,000 local jobs, while the Rosslyn plant in South Africa is expected to retain most employees and incorporate them into Chery's system after takeover.[27][1]

4. Green Supply-Chain Compliance

Facing strict European carbon-footprint requirements, Chery has achieved 100% carbon-footprint accounting coverage for models on sale. Its JAECOO brand obtained China's first China-Europe carbon-footprint data mutual-recognition certificate, helping clear compliance barriers for parts supply chains entering Europe.[3]

VI. Sales Channels and Market-Service Network

Global Channel Coverage

By early 2026, Chery had more than 1,500 overseas dealers and service points across 130 countries and regions, including 18 European markets.[28][3]

Regional Market Structure

Europe: Chery has formed a three-pillar structure in Turkey, the UK and Spain, which together account for 77.5% of European volume. The UK and Poland lead growth. JAECOO became the fastest-growing automotive brand in the UK in 2025, while JAECOO 7 ranked first among Chinese-brand models in the UK in January 2026. Chery is preparing entry into Germany and France.[12][1][7]

Southeast Asia: Vietnam is targeted to become Chery's third-largest brand market. Malaysia doubles as an export hub. Thailand prioritizes local demand, with 85% to 90% absorbed domestically and 10% to 15% exported to Australia, Europe and other markets.[18]

Middle East and Africa: The Middle East remains a traditional stronghold, with Chery introducing new-energy products such as iCAR V27 in Dubai. In Africa, the acquisition of the Rosslyn plant in South Africa upgrades local manufacturing; since entering South Africa in 2021, Chery has already become one of the country's top five passenger-car brands.[29][22]

Russia: Due to sharply higher Russian import tariffs and tighter credit, Chery is actively reducing dependence on Russia. In 2024, Russia still accounted for more than 50% of overseas passenger-car retail volume, but its contribution to total revenue fell to 10.7% in Q1 2025 and is expected to become negligible by 2027.[12]

Commercial-Vehicle Channel: DELIVAN

In 2026, Chery Commercial Vehicle released its 1-2-3-4-6 overseas commercial-vehicle strategy, covering six tracks: medium and heavy trucks, light and mini trucks, vans, pickups, buses and autonomous vehicles. The model combines a parent brand with three sub-brands, DELIVAN PRO, DELIVAN X and DELIVAN I, to build a full ecosystem and shift from selling vehicles toward lifecycle mobility solutions.[30][31]

VII. Talent Localization: The Soft-Power Base of Global Operation

Chery's international workforce has exceeded 20,000 employees, and local employees account for about 85%. In other words, out of every 100 overseas Chery employees, only about 15 come from China headquarters, while 85 are local. This is a leading localization ratio among Chinese automakers going global and is central to Chery's strategy of integrating into local markets.[32]

Local teams handle regional R&D adaptation, channel management, brand communications and customer service. Together with overseas plants and R&D centers, they form a closed loop from R&D and manufacturing to operations and brands. The Raunheim R&D center in Germany, with employees from 16 nationalities adapting vehicles for the European market, is a typical example.[7][3]

VIII. ESG and Carbon Neutrality: A Soft Moat for Global Expansion

As the EU Carbon Border Adjustment Mechanism and vehicle carbon-footprint rules become stricter, ESG capability is becoming a hard entry requirement for high-end overseas markets. At the 2026 Beijing Auto Show, Chery released its 2025 ESG report and set two carbon-neutrality milestones:[4]

  • 2037: carbon neutrality in Chery's own operations.
  • 2047: carbon neutrality across the full value chain.

Supporting measures include green electricity accounting for more than 52% at vehicle bases, self-developed recycled low-carbon aluminum alloy technology, and a plan to build 25 zero-carbon factories globally by 2030. Chery has also cooperated with UNICEF and IUCN, launched mangrove restoration in Malaysia and promoted ecological protection in South America, strengthening local-community integration.[1][11]

IX. Capitalization: Hong Kong IPO Accelerates Globalization

On September 25, 2025, Chery Automobile listed on the Hong Kong Stock Exchange under stock code 9973.HK, raising HKD 9.14 billion, about US$1.2 billion, making it the largest automotive IPO in Hong Kong in 2025.[33]

Use of IPO proceeds:[2]

  • 35%: development of multiple passenger-vehicle models and product-portfolio expansion.
  • 25%: next-generation vehicle and frontier-technology R&D, including new energy and intelligence.
  • 20%: overseas-market expansion and globalization execution.
  • 10%: Wuhu headquarters production-facility upgrades.
  • 10%: working capital and general corporate purposes.

The Hong Kong listing provides Chery with capital, transparency and international-market credibility. That credibility matters when building partnerships and government trust in highly regulated markets such as Europe.

X. Competitive Landscape and Risk Assessment

Competition With BYD

In 2026, Chery still held its 23-year record as China's leading vehicle exporter, while BYD mounted a direct challenge in the European premium and EV markets with a pure-electric product matrix. Chery's differentiation lies in full-powertrain coverage, including ICE, hybrid, range-extender and BEV products, deep emerging-market sales networks and a more mature localized-manufacturing system.[20]

Major Risk Factors

Risk categorySpecific riskChery response
Trade barriersEU tariffs on Chinese EVs, up to about 35.3%Local production in Spain, Turkey, Vietnam and Malaysia to reduce tariff exposure[10]
Russia concentrationHigh dependence on a single geopolitical marketActive reduction, with Russia expected to become negligible by 2027[12]
Lagging NEV exports2024 new-energy exports below 30,000 units, with ICE still dominant[5]Targeting 50% overseas new-energy share in 2026, accelerating Falcon ADAS and Lingxi cockpit rollout
Low brand awarenessWeak pricing power in Europe and the USIndependent OMODA and JAECOO brand operation to avoid direct generic Chinese-brand positioning
GeopoliticsLimited US market access and rising global trade frictionLatin America, Southeast Asia and Africa as the main growth regions; no direct US push for now

Conclusion

Chery's overseas value-chain layout has evolved from early product exports into a five-dimensional ecosystem covering R&D, manufacturing, supply chain, brands and talent. It is one of the most localized and comprehensive overseas systems among Chinese automakers. The year 2026 is a key execution year for Globalization 2.0: the South African plant takeover, Vietnam plant completion, Spain production ramp-up and explosive growth in European new-energy exports all show Chery moving from China's largest vehicle exporter toward a global automotive ecosystem group.

The core observation is that Chery's largest competitive barrier is not any single product. It is 24 years of accumulated localization capability: an 85% local-employee ratio, channels across 130 countries and a manufacturing ladder that spans CKD assembly, joint ventures and fully controlled plants. This system takes decades to reproduce and is difficult for later entrants to surpass quickly.

References

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  2. Chery Listed on HKEX, Embarking on a New Voyage in the Global Market - Chery official listing announcement.

  3. Chery globalization enters the fast lane - People's Daily - 2025 exports and 2026 European growth data.

  4. Chery accelerates overseas layout through full ecosystem integration - Xinhuanet - R&D network, ESG and localization coverage.

  5. How Chery's exports rose - Gasgoo - Chery export history and overseas assembly development.

  6. Chery - Wikipedia - General historical context and production-capacity data.

  7. Chery accelerates overseas layout from a former leather factory near Frankfurt - Tide News - European R&D center report.

  8. China's Chery looking to expand car production in Europe - Reuters report on European expansion.

  9. China's Chery seeks to be Toyota plus Tesla - Reuters report on global ambitions.

  10. Chery industry-chain restructuring opportunity research report - Capacity and technology-chain context.

  11. Global Expansion Accelerates: Chery Upcoming Auto China 2026 - Chery technology and global strategy preview.

  12. 2026 Chery deep report: technology foundation, electric intelligence and global breakthrough - Strategy and Russia exposure context.

  13. Chery to expand its vehicle production capacity in Europe - Just Auto - European production-capacity expansion report.

  14. Chery takes over Nissan South Africa plant - Sohu - Rosslyn plant takeover report.

  15. Chery takes over Nissan South Africa plant, plans 2027 production - Reuters via TradingView - Rosslyn acquisition details.

  16. 2026 export targets for Chinese automakers - Autohome - Chery overseas factory production estimates.

  17. Chinese automakers move into Southeast Asia - AI Auto Manufacturing - Malaysia and Southeast Asia capacity context.

  18. Omoda & Jaecoo to produce three EVs in Thailand in 2026 - MarkLines - Thailand production plan.

  19. Chery to establish factories in Indonesia, Malaysia and Thailand - CLS - ASEAN factory strategy.

  20. BYD vs Chery: who will be export champion in 2026? - Tencent - Export competition and plant data.

  21. Chery assembles cars in Russian plants vacated by Western automakers - VOA - Russia assembly context.

  22. Chery February sales exceed 160,000, cumulative exports above 6 million - Guancha - Overseas brand-matrix context.

  23. Chery Commercial Vehicle launches DELIVAN brand in UK - China Daily - DELIVAN positioning.

  24. Chery global brand matrix expansion - MarkLines - Brand matrix and technology coverage.

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  28. Chery International April 2026 sales update - Overseas channel and export footprint context.

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  30. Chery Commercial Vehicle 2026 Global Partners Conference - Xinhuanet - Commercial-vehicle overseas strategy.

  31. Chery Commercial Vehicle DELIVAN global launch - Sohu - DELIVAN ecosystem and sub-brand structure.

  32. Chery full ecosystem integration - Xinhuanet App - Local employee ratio and production localization.

  33. Chery Automobile goes public on HKEX - Gasgoo - IPO proceeds and listing data.