
Core Viewpoint - The article discusses the competitive dynamics in the Chinese automotive market, particularly focusing on Chery and Geely, highlighting the challenges Chery faces in the context of a rapidly evolving industry towards electric vehicles [2][10][14]. Group 1: Market Competition - Chery's chairman criticized the price wars in the automotive sector, indicating that the market has become a battleground rather than a casino [2][9]. - Geely launched its mid-to-high-end hybrid sedan, the Galaxy Star 8, at a competitive price range of 115,800 to 155,800 yuan, positioning it against luxury models like the BMW 5 Series and Audi A6 [2][10]. - Chery's sales growth was only 10%, while Geely's sales increased by 53%, leading to a shift in market positioning between the two companies [10][12]. Group 2: Sales Performance - In April 2025, Geely's sales reached 234,000 units, a significant increase from the previous year, while Chery's sales were 200,800 units, showing a modest growth [12]. - The article highlights that Chery, once the second-largest among private automakers, has now fallen behind Geely, which has taken the second position [12][11]. Group 3: Challenges in Transition - Chery's decline is attributed to its product line structure, which is heavily focused on fuel vehicles, while the market is shifting towards electric vehicles [14][17]. - The company has faced challenges in overseas markets, particularly in Russia, where sales dropped by 32% due to increased taxes and brand pressure [21][22]. - Chery has begun expanding its electric vehicle lineup, showcasing 53 models at the Shanghai Auto Show and planning to launch 39 hybrid models globally [23][24]. Group 4: Strategic Missteps - Chery's approach to rapidly expanding its electric vehicle offerings has not yet yielded successful models, contrasting with Geely's more focused strategy [37][40]. - The article suggests that Chery should prioritize developing a standout product rather than flooding the market with numerous models that lack maturity [40][41]. - The company's leadership has made public criticisms that may harm its brand image, further complicating its competitive position [38].