Core Insights - Chery's IPO on September 25, 2023, marked a significant milestone in its 28-year history, with oversubscription exceeding 238 times and strong backing from 13 cornerstone investors, highlighting global capital's recognition of Chinese manufacturing [1] - The company's journey from humble beginnings in a thatched house to becoming a global manufacturing benchmark is attributed to its commitment to technology-driven enterprise [1] Group 1: Cultural Foundation - Chery's enduring corporate culture, rooted in the spirit of resilience and gratitude, serves as a competitive advantage, fostering internal confidence and cohesion among employees [2] - The leadership style of CEO Yin Tongyue emphasizes collective learning and consensus-building, contrasting with the typical top-down management approach in the industry [2] - Three cultural genes—Wuhu's Hui merchant spirit, a dedication to engine technology, and the "thatched house" ethos—form the backbone of Chery's corporate identity, enabling it to overcome challenges and maintain a forward-looking mindset [2][3] Group 2: Technological Innovation - Chery's revenue is projected to grow from 92.6 billion in 2022 to 269.9 billion in 2024, driven by a robust commitment to technological innovation and a comprehensive R&D ecosystem [4] - The company has significantly increased its R&D investment from 4.1 billion in 2022 to 10.5 billion in 2024, with a compound annual growth rate of nearly 60% [5] - Chery's advancements in powertrain technology, including the ACTECO engine series and proprietary transmission systems, have positioned it as a leader in both fuel and electric vehicle markets [5][6] Group 3: Global Strategy - Chery has established a strong global presence, exporting to over 100 countries and achieving top sales among Chinese brands in key markets like Europe and South America [8][9] - The company's new factory in Barcelona represents a significant step in localizing production in Europe, enhancing its global supply chain and service network [8][10] - Future plans include expanding production capacity in Vietnam and Malaysia, as well as increasing R&D personnel to develop products tailored to local markets [10]

Core Viewpoint - Chery Automobile's listing on the Hong Kong Stock Exchange marks a significant milestone in the Chinese automotive industry, attracting key investors like Horizon Robotics, which highlights the growing importance of smart technology in reshaping the automotive value chain [1][3][13]. Investment and Strategic Collaboration - Horizon Robotics' investment of $40 million in Chery reflects a strong belief in Chery's growth potential and the strategic importance of smart technology in the automotive sector [1][3]. - The partnership between Horizon and Chery, established in 2021, has led to the development of advanced driving assistance systems, showcasing a successful collaboration that enhances both companies' market positions [4][10]. Market Performance and Growth Projections - Chery is projected to achieve a 49.4% increase in passenger car sales in 2024, positioning it among the top global automakers [3]. - Horizon Robotics leads the Chinese market for autonomous driving solutions, holding a 32.4% share in the market for passenger car assistance systems and a 45.8% share in the ADAS front-view camera market [3][8]. Technological Advancements and Product Development - Horizon Robotics has established a robust competitive edge through its "chip + algorithm + ecosystem" strategy, which has resulted in significant revenue growth, with a 67.6% year-on-year increase in revenue to 1.567 billion yuan [8]. - The introduction of the Horizon Journey 6P chip in Chery's latest model, the Starway ET5, exemplifies the integration of advanced technology into new vehicles, enhancing their market appeal [4][10]. Industry Trends and Future Outlook - The penetration rate of advanced driver assistance systems among Chinese automakers has reached 59%, indicating a strong trend towards smart vehicle technology [9]. - The collaboration between Horizon and over 40 automotive brands, along with plans for mass production of smart driving systems, suggests a promising future for the smart driving market in China [10][11]. - The anticipated growth of the Robotaxi market, projected to reach $47 billion by 2035, underscores the potential for Horizon Robotics to capitalize on emerging opportunities in the autonomous vehicle sector [11][12].

Overview of the Auto Show - The 28th Chengdu International Auto Show was held from August 29 to September 7, 2025, showcasing over 1,600 vehicle models from nearly 120 brands, focusing on new technologies and products in the automotive industry [6][7]. Key Highlights - A total of 104 key models were monitored at the show, with 33 debut models. Chinese brands accounted for over half of the key models, followed by European brands. New products made up 46% of the models, with SUVs representing 62.5% of the body types, and sedans at 33.7%. Notably, 75% of the key models were electric vehicles [2][7][11]. Product Trends - The color design of vehicles is evolving towards diversification, personalization, and eco-friendly technologies. Several models featured unique color schemes that reflect brand positioning and innovative craftsmanship [9][10]. - The pickup truck segment saw significant innovation, with many manufacturers showcasing new models that emphasize powertrain technology, smart features, and user experience. Electric vehicles are becoming increasingly prominent in the pickup market [11][12]. Technological Innovations - Manufacturers are focusing on range-extending power systems, with several companies presenting new models equipped with batteries over 40 kWh, achieving pure electric ranges exceeding 300 km [12][13]. - The evolution of vehicle interiors is marked by advancements in interactive experiences, transitioning from passive to active engagement, with future developments expected to include multi-modal interactions [14][15]. Featured Models - The Zeekr 9X features a dual 8295 smart cockpit and a 900V hybrid architecture, with a price range of 479,900 to 569,900 yuan [17]. - The new AITO M7 showcases a complete redesign, increased dimensions, and a new pure electric version, with a range of 700 km [19]. - The Lantu Zhi Guang L, set to launch in Q4 2025, features a 1.5T PHEV system and a pure electric range of 410 km [22]. - The NIO ES8, with a starting price of 308,800 yuan, offers a luxurious interior and advanced driving assistance systems [30]. Market Dynamics - The auto show reflects a shift in consumer preferences towards electric and hybrid vehicles, with significant advancements in technology and design aimed at enhancing user experience and environmental sustainability [2][11][12].

Core Viewpoint - Tesla has implemented a price reduction for the Model 3 in China, signaling an early start to the competitive pricing war in the electric vehicle market ahead of the traditional sales peak in September and October [1][5]. Group 1: Price Reduction and Market Strategy - On September 1, Tesla announced a price cut of 10,000 yuan for the long-range rear-wheel drive Model 3, reducing the price from 269,500 yuan to 259,500 yuan, just weeks after its launch [1]. - The price adjustment includes benefits for customers who have already placed orders but have not yet taken delivery, allowing them to enjoy the new pricing along with additional incentives such as five years of interest-free financing and an 8,000 yuan insurance subsidy [1]. - This price cut is seen as a strategic move to regain market share in the face of increasing competition from domestic brands in the 250,000 to 300,000 yuan electric sedan market [2][3]. Group 2: Sales Performance and Market Competition - The Model 3's sales have not met expectations, with only about 8,000 orders in its first week, which is 60% of the initial orders for the Model Y during its launch [2]. - In August, Tesla's sales of domestic electric vehicles fell by 4% year-on-year, with a total of 432,400 units sold in the first seven months of the year, representing a 13.7% decline compared to the previous year [2]. - The competitive landscape is intensifying, with domestic brands like Xiaomi and Zeekr offering models with superior specifications and lower prices, further pressuring Tesla's market position [2][4]. Group 3: Brand Perception and Market Dynamics - Tesla's brand premium is being challenged by the value-for-money propositions of Chinese brands, which are increasingly appealing to consumers [3]. - The reduction in raw material prices has allowed Tesla to maintain a gross margin of 17.2% in Q2, providing some buffer for its pricing strategy [3]. - The Model 3 has experienced significant price fluctuations, with a total of eight price changes since the beginning of 2023, leading to a decrease in its one-year resale value from 78% in 2022 to an estimated 63% in 2025 [4]. Group 4: Future Outlook - The price cut is expected to intensify competition in the electric vehicle market, particularly in the 200,000 to 300,000 yuan segment, as new models are launched during the Chengdu Auto Show [5]. - The upcoming months will be critical for Tesla as it navigates the challenges of brand aging and product iteration while responding to potential price adjustments from competitors [5].

Group 1 - European luxury brands will adopt Chery's E0X high-performance electric platform, following the Land Rover Freelander as the first SUV to utilize this platform [2] - Maserati and Alfa Romeo, both part of the former Fiat group, are set to develop new energy vehicles based on the E0X platform [2] - The E0X platform, launched by Chery at the end of 2023, features a high-performance physical architecture and a high-intelligence electronic architecture, offering advantages in safety, efficiency, and comfort [2] Group 2 - In July, Chery Group sold 224,439 vehicles, marking a year-on-year increase of 14.7%, with 210,066 units sold by Chery Automobile, up 13% [3] - The group sold 65,357 new energy vehicles in July, reflecting a significant year-on-year growth of 44.1%, and exported 119,090 vehicles, up 31.9%, maintaining its position as the top exporter of Chinese automobiles [3] - From January to July, Chery Group achieved cumulative sales of 1,484,563 vehicles, a historical high with a year-on-year increase of 14.5%, and exported 669,360 vehicles, becoming the first Chinese brand to exceed 5 million in exports [3]

Core Insights - The article discusses the competitive landscape in the luxury MPV market, highlighting that Zhijie may have an advantage in launching the first MPV under the Hongmeng Zhixing brand, as Chery has shifted its focus from the Star Epoch E08 to Zhijie for this opportunity [1][6][10]. Company Developments - Zhijie is developing its first MPV, code-named "EHV," based on the E0X-L platform, with both pure electric and range-extended power options, and is expected to launch in the first half of next year [1][6]. - Chery's Star Epoch E08 project has been halted, with some team members reassigned to Zhijie, indicating a strategic shift to consolidate resources and enhance Zhijie's development capabilities [1][3]. - The Star Epoch series, which targets the high-end market, has seen its pricing adjusted, with the starting price dropping to 19.88 million yuan to remain competitive against Zhijie's offerings [4][10]. Market Positioning - Zhijie and Star Epoch are positioned similarly in the high-end electric vehicle market, but Zhijie is expected to perform better due to its higher price point and sales volume [2][10]. - Zhijie's S7 model has a price range of 24.98 million to 34.98 million yuan, while the Star Epoch ES is priced between 22.58 million and 31.98 million yuan, indicating overlapping market segments [2][4]. Production and Supply Chain Challenges - Zhijie faced production challenges with the S7 model due to equipment and hiring issues at its dedicated factory, leading to a temporary shift to Chery's existing production facilities [4][5]. - Despite initial order success for the S7, with over 20,000 pre-orders, delivery delays have raised concerns about production efficiency compared to the Star Epoch ES, which has had smoother deliveries [5][15]. Strategic Partnerships - The collaboration between Chery and Huawei for the Zhijie brand is emphasized as a strategic priority, with Chery's leadership expressing commitment to aligning closely with Huawei's direction to ensure success [5][10]. - The establishment of a dedicated factory for Zhijie aims to eliminate resource allocation conflicts with other Chery brands, enhancing production focus [13][14]. Industry Trends - The demand for electric MPVs is on the rise, with significant year-on-year sales growth reported, indicating a shift in market focus as traditional vehicle segments become saturated [7][10]. - The competitive landscape is evolving, with new entrants and established brands vying for market share in the MPV segment, suggesting a dynamic environment for Chery and its brands [7][15].

Core Viewpoint - The competition for the first MPV under the Hongmeng Intelligent Driving brand is intensifying, with Zhijie potentially gaining an advantage as it develops its MPV based on the E0X-L platform, expected to launch in the first half of next year [1][3]. Company Developments - Zhijie is developing an MPV named "EHV," which will offer both pure electric and extended-range power options, with batteries supplied by CATL [1]. - Chery's first luxury MPV, the Star Era E08, has been halted in development, with some team members transferred to Zhijie to strengthen its MPV development efforts [1][3]. - Chery has restructured its brand strategy, forming "New Four Major" divisions to optimize resource allocation and enhance brand competitiveness [2]. Market Positioning - Zhijie targets a high-end market segment focused on "intelligence, high performance, and innovation," overlapping with the positioning of Chery's Star Era series [1][3]. - The Star Era series, launched in July 2023, is positioned as Chery's premium line, with prices ranging from 172,800 to 319,800 yuan [1]. Sales and Production Challenges - Zhijie S7 has received over 20,000 pre-orders but faces production challenges due to equipment and hiring issues at its dedicated factory [3][4]. - Chery has redirected the production of Zhijie S7 to its Wuhu Intelligent Connected Super Factory, originally intended for other models, indicating tight production capacity [4]. Competitive Landscape - The market for new energy MPVs in China has been growing, with sales reaching 45,100 units in June, a 53.3% year-on-year increase [7]. - Zhijie has sold 64,300 units in the past seven months, outperforming the Star Era's 44,200 units, indicating a stronger market presence [8]. Future Prospects - The successful launch of Zhijie's MPV could serve as a new growth point for the brand, especially as it aims to establish a distinct identity separate from other models under the Hongmeng Intelligent Driving umbrella [9][10]. - The company is in the process of establishing dedicated sales centers for the Zhijie brand to enhance its market presence and brand image [9].

Core Viewpoint - The competition for the first MPV under the Hongmeng Intelligent Driving brand is intensifying, with Zhijie potentially gaining an advantage as it develops its MPV based on the E0X-L platform, expected to launch in the first half of next year [1][3]. Company Developments - Zhijie is developing an MPV named "EHV," which will offer both pure electric and extended-range powertrains, with batteries supplied by CATL [1]. - Chery's first luxury MPV, the Star Era E08, has reportedly halted development, with some team members transferring to Zhijie to bolster its MPV development efforts [1][3]. - Chery has initiated a brand integration strategy, forming "New Four Major" divisions to optimize resource allocation and enhance brand competitiveness [2]. Market Positioning - Zhijie and Star Era are positioned similarly in the high-end new energy market, but Zhijie is seen as better suited to support luxury MPV models [2]. - The pricing strategy for the Star Era series has been adjusted, with the starting price dropping to 19.88 million yuan, making it 5.1 million yuan cheaper than Zhijie S7 [4]. Sales Performance - Zhijie S7 has received over 20,000 pre-orders since its launch, but production issues have led to delays, causing dissatisfaction among customers [4][5]. - In the first half of the year, Zhijie sold 64,300 units, surpassing Star Era's 44,200 units, indicating a stronger market performance [10]. Production Capacity - Chery's new "Intelligent Connected Super Factory" is set to produce Zhijie S7, but initial production challenges have led to a temporary shift to another facility [4][5]. - Zhijie has established an independent factory, which is expected to alleviate resource allocation issues with other Chery brands [13]. Future Outlook - The MPV market is growing, with a 53.3% year-on-year increase in sales for new energy MPVs in June, indicating a favorable environment for Zhijie's upcoming launch [7]. - If Zhijie's EHV MPV launches successfully, it could become a significant growth point for the brand, especially as it aims to compete in a market where many manufacturers are pivoting towards MPVs [15].

Core Viewpoint - Chery is undergoing significant organizational changes as it approaches its IPO, including the establishment of a domestic business group and the elevation of the Fengyun series to an independent brand, aimed at enhancing strategic focus and resource integration [1][2][6]. Group 1: Organizational Changes - Chery has formed a domestic business group under the Chery brand, which includes four divisions: Starway, Aihou (Aiyre and Ruichu), Fengyun, and QQ [2][6]. - The Starway brand remains positioned as Chery's high-end brand despite being integrated into the Chery brand domestic business group [2][6]. - The Fengyun series has been upgraded from a product line to an independent brand, reflecting its historical significance and the company's commitment to innovation and user demands [3][4][6]. Group 2: Sales and Market Performance - Starway's sales have grown significantly from under 20,000 units in its founding year to 126,000 units in 2023, with a projected 141,000 units in 2024 [3][8]. - In the first half of 2023, Starway achieved cumulative sales of 63,000 units, marking a year-on-year increase of 15.1% [3][8]. - Chery's overall sales for 2024 are expected to reach approximately 2.6039 million units, representing a year-on-year growth of 38.4% [8]. Group 3: Market Response and Financial Outlook - Following the organizational adjustments, some brokerages have raised their IPO pricing for Chery by 12%, indicating positive market sentiment [5][8]. - Chery's revenue for 2022 and 2023 was reported at 92.618 billion yuan and 163.205 billion yuan, respectively, with a significant increase in revenue for the first three quarters of 2024 [8]. - The company's net profit attributable to shareholders for the same periods was 6.266 billion yuan, 11.953 billion yuan, and 11.222 billion yuan [8].

Core Viewpoint - Chery is undergoing significant adjustments, including the establishment of a domestic business group and the elevation of its new energy series "Fengyun" to an independent brand, indicating a strategic focus on the new energy vehicle market [2][5]. Group 1: Brand Development - The Fengyun series, which started as Chery's first car model in 1999, has been redefined as a luxury independent brand targeting the new energy sector [2][3]. - The launch of the Fengyun A9L on July 8, 2023, marks a critical moment for the brand, with a price range of 139,900 to 197,900 yuan, and it is expected to perform well in the market [2][4]. - The Fengyun brand aims to enhance its market presence by introducing multiple models, including the A8, T9, and T10, with the A9L positioned as a potential bestseller [4]. Group 2: Strategic Adjustments - Chery has restructured its passenger vehicle business into four divisions, including the Fengyun division focused on new energy, while the Xingtou brand has been integrated into the Chery brand, indicating a shift in strategic focus [5][6]. - The integration of the Xingtou brand into the Chery brand aims to streamline operations, reduce costs, and enhance resource sharing, particularly in supply chain and manufacturing [7]. - The restructuring is seen as a response to the slowing growth of the Xingtou brand and aims to optimize the company's positioning ahead of its planned IPO [6][7].