Core Insights - Chery held the 2025 Global Innovation Conference in Wuhu, showcasing its technological breakthroughs in electrification, connectivity, and intelligence, with a strategic vision of "global co-research, sharing, and symbiosis" [1][3] Technology Achievements - Chery displayed multiple technological achievements, including the Kunpeng Tianqing engine, which improves thermal efficiency to 48%, indicating ongoing investment in combustion systems and thermal management [4] - The Ark Amphibious System-equipped Zongheng G700 successfully crossed the Yangtze River, demonstrating capabilities in extreme conditions, although its application in regular passenger vehicles is limited [4] - In the field of intelligence, Chery adopted a dual approach by showcasing its self-developed Falcon Intelligent Driving model and integrating Huawei's ADS4 system for end-to-end urban NOA functionality [4] Strategic Transformation - Chery's Chairman, Yin Tongyue, emphasized the transition to a technology-driven enterprise, with international expansion as a key focus, noting that overseas revenue is approaching half of total earnings [5] - As of September 2025, Chery exported 137,624 vehicles, a 26.2% year-on-year increase, and has been the largest domestic car exporter in China since 2003 [6] Market Dynamics - In 2024, Chery led the Chinese automotive industry in exports to Russia, with 325,000 vehicles sold, a 47% increase [7] - However, Chery's sales in Russia saw a 13.7% decline in July, indicating potential market saturation and challenges due to geopolitical factors [7] - Chery is adjusting its global strategy by planning to reduce operations in Russia and shift focus to markets in Europe and South America, facing competition from domestic rivals like SAIC and BYD [8] Industry Competition - The Chinese automotive industry is experiencing increased competition in overseas markets, with exports reaching 3.083 million vehicles in the first half of 2025, a 10.4% increase [11] - SAIC's MG brand and BYD are making significant strides in Europe and other emerging markets, with BYD's sales in the first half of 2025 surpassing the total for 2024, reflecting a growth rate of 130% [11]

Core Insights - Chinese automotive brands are rapidly expanding into Southeast Asia, with a 58% year-on-year increase in sales in key markets like Indonesia, Malaysia, Thailand, and the Philippines, capturing over 10% of the region's total sales [1] - X-Motors, established in September 2024, aims to support Chinese automotive brands in their global expansion, focusing on building a localized service system in Southeast Asia and other emerging markets [1][2] - The company has formed strategic partnerships with well-known Chinese automotive brands and has secured dealership rights in overseas markets, enhancing its service capabilities [1][6] Company Overview - X-Motors recently completed a nearly $10 million first round of financing, led by Bosch Group's market-oriented investment platform, which will accelerate its store expansion in Southeast Asia and Central Asia [2] - The company has opened two Bosch automotive service flagship stores in Jakarta, Indonesia, serving over 5,000 car owners, and plans to develop 20 franchisees in Jakarta by the end of the year [2][6] - X-Motors is targeting a total of 60 stores in Indonesia by next year, aiming to establish the largest independent automotive after-sales service network in the country [2][6] Market Potential - Indonesia, as ASEAN's largest economy and the world's fourth most populous country, presents significant market potential, with a growing middle class and increasing consumer spending [6][7] - The automotive after-sales service market in Indonesia is valued at approximately $4.5 to $5 billion and is expected to grow steadily, with the Southeast Asian market projected to reach $28.8 billion by 2025 and $63.9 billion by 2035 [6][7] - The lack of standardized, large-brand service providers in the automotive after-market in Southeast Asia creates a market gap that X-Motors aims to fill [7] Strategic Partnerships - X-Motors has partnered with Bosch and CATL, leveraging their resources to enhance its market entry and service capabilities in Southeast Asia [6][7] - As the national general agent for Bosch's smart mobility after-sales service in Indonesia, X-Motors benefits from Bosch's global brand influence, facilitating its market development [7] - The company is also one of CATL's four overseas after-sales service centers, managing all battery maintenance, servicing, and recycling within its authorized regions, which is expected to grow with the increasing use of new energy vehicles [7] Future Plans - Following the establishment of a stable business foundation in Indonesia and Central Asia, X-Motors plans to expand into Malaysia and Australia [8] - The company anticipates a new round of financing by the end of the year to support its growth initiatives [8]

Investment Rating - The industry investment rating is "Outperform" [1] Core Insights - The report highlights the robust performance of China's automotive exports, particularly in the electric vehicle (EV) segment, with a significant year-on-year growth of 107% in Q3 2025 [2][15] - The Spanish automotive market is recovering, with new car registrations increasing by 14.6% year-on-year in the first eight months of 2025, although still below pre-pandemic levels [2][22] - Chinese brands are gaining market share in Spain, with SAIC MG ranking among the top ten brands in terms of sales [2][29] Summary by Sections 1. Domestic Passenger Car Market Tracking (Q1-Q3 2025) - The wholesale sales of passenger cars in China reached 20.801 million units from January to September 2025, marking a 13.3% increase year-on-year [2][9] - New energy vehicle (NEV) wholesale sales totaled 10.375 million units, up 32.3% year-on-year, indicating strong market performance [2][12] - The export volume of passenger cars in Q3 2025 was 1.512 million units, reflecting a 23.3% increase year-on-year [2][15] 2. Characteristics of the Spanish Automotive Market - In the first eight months of 2025, Spain's new car registrations totaled 769,452 units, a 14.6% increase compared to the previous year [2][22] - NEVs accounted for 18% of total vehicle sales in Spain during the same period, supported by the "MOVES III" subsidy program [2][26] - The number of charging stations in Spain reached 52,107 by Q3 2025, with a total of 13,382 new stations added [2][41] 3. Beneficiaries of Local Manufacturing in Spain - Chery has established a joint venture with Ebro in Spain, marking it as the first Chinese automaker to have a production base in Europe, with the first model, EBRO S700, launched in November 2024 [2][50] - Leap Motor is set to utilize Stellantis' factory in Zaragoza for local production, with plans to start manufacturing in Q3 2026 [2][53] - Leap Motor's sales in Europe reached 13,443 units in the first nine months of 2025, ranking fourth among Chinese brands [2][60]

Group 1 - Chery Holding Group and Yuchai have established a strong strategic partnership over the years, focusing on deepening cooperation in domestic markets and exploring opportunities in international markets as the Chinese automotive industry accelerates its global expansion [2][3] - The meeting included discussions on industry development trends, the transition to new energy and intelligent technologies, future collaboration opportunities, and optimization of the supply chain [3] - Yuchai reported its operational performance for the first three quarters and outlined its development outlook for the fourth quarter during the meeting [3] Group 2 - Foton sold over 36,000 light trucks, while Jianghuai and Jiangling also performed well, with a significant increase in sales for light trucks in September [6] - Major players like Zhongtong, Yutong, and CRRC secured a large order for 125 buses, indicating strong demand in the bus segment [6] - In September, new energy tractor sales reached 19,000 units, with significant competition among manufacturers, and light commercial vehicle sales surged by 37% [6]

Core Insights - The "2025 Global Automotive Regulations Certification Summit" successfully concluded in Hangzhou, with over 500 participants from various countries discussing the challenges and opportunities for the Chinese automotive industry in international markets [3][5][24] - The summit highlighted the importance of compliance with diverse global regulations as a foundation for the sustainable development of Chinese automotive enterprises abroad [22][24] Group 1: Summit Overview - The summit was co-hosted by multiple organizations, including the China Council for the Promotion of International Trade Automotive Industry Branch and the China Quality Certification Center, focusing on regulatory and market access consultations for Chinese automotive exports [3][5] - Key representatives from automotive certification agencies and government units from over ten countries participated, emphasizing the global nature of automotive regulations [10][14] Group 2: Industry Challenges and Strategies - The president of the China Council for the Promotion of International Trade Automotive Industry Branch noted that the global automotive industry is at a historical crossroads, with increasing complexity in regulations and standards across different regions [5][24] - Chinese automotive companies are encouraged to develop a systematic response capability that includes policy research, localization, and compliance certification to navigate international markets effectively [5][7] Group 3: Market Insights and Future Directions - The Chinese automotive export volume reached nearly 5 million units from January to August 2025, marking a 13.7% year-on-year increase, with export value surpassing $84.3 billion, up 10.8% [18][20] - The summit underscored the necessity for Chinese automotive brands to adapt to local cultures, consumer habits, and regulatory environments to build trust and recognition in foreign markets [7][20] Group 4: Collaborative Efforts - The summit served as a platform for Chinese automotive manufacturers to engage directly with international experts, facilitating deeper understanding of various market requirements and compliance challenges [14][22] - The collaboration between domestic and international research and certification institutions is seen as vital for advancing technology and standard-setting in the automotive sector [7][9]

Core Insights - BYD maintains a leading position in the global new energy vehicle market, with international expansion being a key driver for sales and profitability growth [3] - The Xiaomo International Logistics Port has become a crucial gateway for BYD's global strategy, facilitating the export of vehicles and enhancing logistics capabilities [5] Group 1: Export Activities - In the first nine months of this year, Xiaomo Port exported 23,000 vehicles, with over 90% sourced from BYD's Shen-Shan base [5] - The port is expected to achieve a record monthly export volume of over 14,000 vehicles in October, marking a historical high since its opening [5] Group 2: Logistics and Infrastructure - BYD has established a fleet of eight roll-on/roll-off ships, capable of transporting over one million vehicles annually, enhancing its logistics support for overseas market expansion [3][5] - Xiaomo Port is designed to accommodate the transportation of 300,000 vehicles annually, with plans for further expansion to increase capacity to one million vehicles by 2025 [7] Group 3: Strategic Development - The Xiaomo Port serves as a hub for the integration of production, transportation, and trade within the automotive industry, exemplifying the synergy in the Shen-Shan Special Cooperation Zone [5] - The port's operational efficiency is enhanced by a one-stop regulatory process, allowing vehicles to be ready for export within five minutes of production [5]

Core Insights - The export of Chinese automobiles is accelerating, with a total of 4.95 million vehicles exported in the first three quarters of the year, representing a year-on-year increase of 14.8%. Notably, the export of new energy vehicles (NEVs) reached 1.758 million units, up 89.4% year-on-year [2][4]. Group 1: Market Dynamics - The Latin American automotive market, previously dominated by European and American car manufacturers, is now witnessing a surge in Chinese NEVs, with brands like BYD and Geely gaining significant market presence [2][4]. - In Brazil, BYD captured over 70% of the pure electric vehicle market in September, selling 5,687 units, marking a significant milestone with the 14 millionth vehicle produced at its Brazilian factory [4][5]. - The overall NEV sales in Latin America are projected to reach approximately 412,500 units in 2024, reflecting a year-on-year growth of 73.5%, with Brazil leading at an 88.7% growth rate [6]. Group 2: Challenges and Local Adaptation - Several Latin American countries are imposing tariff barriers and localization requirements, which are reshaping the export strategies of Chinese automakers. For instance, Brazil plans to reintroduce import taxes on NEVs starting January 2024, potentially increasing rates to 35% by mid-2026 [9][10]. - The need for local manufacturing has become essential for Chinese car manufacturers to navigate these challenges, with companies like BYD and Great Wall Motors establishing local production facilities to meet market demands and regulatory requirements [10][12]. Group 3: Strategic Partnerships and Infrastructure - Chinese automakers are increasingly focusing on forming local partnerships to enhance their market presence and operational efficiency. For example, BYD has collaborated with local firms to develop a comprehensive charging network in Brazil [14]. - The lack of adequate charging infrastructure in Brazil poses a significant challenge for the NEV market, with a ratio of 14 electric vehicles per charging station, highlighting the need for investment in charging facilities [13][14].

Group 1 - The meeting focused on enhancing the business environment in Qingdao's Shibei District, emphasizing the importance of private enterprises in economic development [1] - Sun Hehong, representing Guohetong, highlighted the company's commitment to innovation and seizing development opportunities through a global leading logistics supply chain brand [2] - Guohetong aims to support China's automotive industry in expanding internationally by strengthening domestic and international supply chain connections [2][6] Group 2 - Guohetong is recognized as a national model for supply chain innovation and application, positioning itself as a leader in the vehicle and equipment logistics supply chain sector [6] - The company plans to provide services that enhance, supplement, and strengthen the supply chain for the vehicle and equipment industry, contributing to the automotive sector's global outreach [6]

Core Insights - The export of Chinese automobiles is accelerating, with a total of 4.95 million vehicles exported in the first three quarters of the year, representing a year-on-year growth of 14.8%. Notably, the export of new energy vehicles (NEVs) reached 1.758 million units, a remarkable increase of 89.4% [1][2] Industry Overview - The Latin American automotive market, previously dominated by European and American manufacturers, is now witnessing a surge in Chinese NEVs. In Brazil, BYD's electric vehicles have captured over 70% of the pure electric market share, with the company selling 5,687 units in September alone [2][3] - The overall NEV sales in Latin America are projected to reach approximately 412,500 units in 2024, marking a year-on-year growth of 73.5%. Brazil leads with an 88.7% growth rate, followed by Mexico and Colombia [3][4] Market Dynamics - Traditional international car manufacturers still dominate the Latin American market, particularly in the fuel vehicle segment. However, Chinese manufacturers are catching up in the 1.5L engine technology and are enhancing their competitiveness in fuel vehicles through advancements in electric vehicle technologies [4][5] - The low penetration rate of NEVs in Latin America, currently below 5%, presents significant growth opportunities compared to China's 58.3% and Europe's 32% [3] Localization Strategies - Increasing tariffs in several Latin American countries are pushing Chinese manufacturers to adopt local production strategies. Brazil plans to reintroduce import taxes on NEVs starting January 2024, with rates expected to rise to 35% by July 2026 [6][7] - Local manufacturing is becoming essential for Chinese car companies to navigate tariff barriers and meet local employment requirements. For instance, BYD's factory in Brazil employs over 80% local staff and is expected to create 20,000 jobs when fully operational [7][8] Infrastructure Challenges - The underdeveloped charging infrastructure in Brazil poses a challenge for the NEV market. As of February, Brazil had only 14,827 charging stations, leading to a ratio of 14 electric vehicles per charging station [10] - To address this, BYD is collaborating with local partners to establish a comprehensive charging network, aiming to provide access to over 450 charging stations by May 2025 [10] Future Outlook - The shift from merely exporting vehicles to establishing a comprehensive operational presence in Latin America is becoming a strategic focus for Chinese manufacturers. This includes local production, supply chain development, and talent acquisition [8][9] - The collaboration with local partners is crucial for overcoming challenges related to local component sourcing and meeting localization requirements [11]

Core Viewpoint - The current trend of Chinese automotive companies going global is not only a sign of industry upgrade but also a focal point for capital market attention, with companies that can sustain overseas expansion and penetrate high-barrier markets expected to enjoy higher valuation levels [1][4]. Summary by Sections Export Performance - In the first three quarters of this year, China's automotive export volume reached 4.95 million units, a year-on-year increase of 14.8%. In September alone, the export volume was 652,000 units, up 21% year-on-year, indicating strong momentum [1]. - Chery's export performance stands out, with a single-month export of 137,624 units in September, a year-on-year increase of 26.2%, setting a new record. From January to September, Chery exported a total of 936,428 units, up 12.9% year-on-year [1][5]. Market Positioning - Chery leads the industry with an export volume that is double that of the second-ranked company, showcasing its strong scale effect. The models Chery exported, such as the Tiggo 7 and Tiggo 5X, consistently ranked among the top two in September [5][6]. - Chery has maintained its position as the top exporter of passenger cars in China for 22 consecutive years, achieving significant milestones such as the first Chinese brand to export over 5 million units cumulatively [8][9]. Growth Logic - Chery's success in overseas markets is attributed to its dual strategy of "technology defining standards" and "localization reconstructing ecosystems." The company has established a robust technological foundation through its "Yaoguang 2025" strategy, which includes five core technology matrices [11][12]. - Chery's global expansion is supported by eight R&D centers worldwide, allowing for localized product adaptations to meet regional market demands [11][12]. Financial Performance - Chery's overseas revenue has shown a consistent upward trend, with revenues of 30.39 billion yuan, 77.06 billion yuan, 100.90 billion yuan, and 26.29 billion yuan from 2022 to the first quarter of 2025, representing 32.8%, 47.2%, 37.4%, and 38.5% of total revenue respectively [10]. - The company plans to establish 45 sales outlets in Europe by the end of 2025, expanding to 100 by 2026, which will further solidify its market presence and revenue growth [17][18]. Investment Potential - Chery is transitioning from an "export champion" to a "global industrial ecosystem builder," which is expected to release significant value for investors. The company's focus on high-value markets like Europe positions it for quality growth [17][18]. - Chery's current PE TTM is 10.10, which is considered undervalued in the context of the recent automotive sector pullback. The company is expected to achieve revenues of 269.90 billion yuan and a net profit of 14.33 billion yuan in 2024, indicating a robust operational style [18][19]. Conclusion - Chery's impressive export achievements are the result of over two decades of commitment to globalization, technology development, and localization. This case serves as a benchmark for the global competitiveness of Chinese automotive brands, emphasizing the importance of solid technological foundations and sustainable global strategies [22].