Industry Overview - The automotive market in China showed strong performance in the first half of 2025, with production and sales reaching 15.62 million and 15.65 million units respectively, marking year-on-year growth of 12.5% and 11.4% [2] - New energy vehicles (NEVs) also saw significant growth, with production and sales reaching 6.968 million and 6.937 million units, reflecting year-on-year increases of 41.4% and 40.3% [2][5] Major Players Performance - BYD achieved sales of 2.146 million vehicles in the first half of 2025, a year-on-year increase of 33.04% [4] - SAIC Motor sold 2.053 million vehicles, with a year-on-year growth of 12.4%, maintaining positive growth for six consecutive months [4] - Chery's sales reached 1.26 million vehicles, marking a year-on-year increase of 14.5% [5] - Geely's total sales were 1.93 million vehicles, with NEV sales reaching 1.001 million units, a remarkable year-on-year growth of 73% [5] New Energy Vehicle Trends - The NEV sector continues to thrive, with companies like Geely and Chery reporting substantial increases in NEV sales, contributing to the overall market growth [6][7] - The penetration rate of NEVs in Geely reached 52% in the first half of 2025, indicating a strong shift towards electric vehicles [5] Competitive Landscape - The competition among new car manufacturers has intensified, with Leap Motor leading the new forces with 221,700 deliveries, followed by Li Auto and Xpeng with 203,800 and 197,200 units respectively [3][7] - NIO's performance was relatively stable, delivering 114,000 vehicles, a year-on-year increase of 30.57% [8] Market Dynamics - The automotive industry is experiencing a shift from aggressive price competition to a focus on quality and innovation, as companies adapt to market changes and consumer demands [9][10] - The trend of "anti-involution" is gaining traction, with major players taking steps to stabilize supply chains and maintain supplier interests [8][9] Strategic Adjustments - Companies are restructuring internally to enhance competitiveness, with SAIC integrating its brands to improve resource utilization and reduce production costs [10] - The emphasis on brand innovation and quality improvement is becoming increasingly important in the competitive landscape of the automotive industry [10]

Group 1 - Chery Automobile announced a significant organizational restructuring, establishing a domestic business group with four major divisions: Xingtu, Aihou, Fengyun, and QQ [2] - The restructuring is viewed as a crucial step for Chery in its pursuit of a Hong Kong IPO [2] - The new structure aims to enhance operational efficiency and resource coordination, with a marketing service center established to eliminate internal conflicts [2] Group 2 - Chery's market performance has been strong, with cumulative sales reaching 1,260,124 units in the first half of 2025, a year-on-year increase of 14.5% [3] - The company sold 359,000 new energy vehicles, marking a significant year-on-year growth of 98.6% [3] - Chery exported 550,000 vehicles in the first half of the year, achieving a 3.3% increase and surpassing 5 million cumulative exports, maintaining its position as the top Chinese carmaker in exports [3]

Core Viewpoint - Chery Automobile Co., Ltd. has launched the Fengyun A9L, a luxury electric hybrid sedan, marking a significant step for Chinese brands in the new energy luxury car sector with a price range of 139,900 to 197,900 yuan [1] Group 1: Product Launch and Features - The Fengyun A9L is built on a high-performance luxury electric hybrid E platform, offering four variants and nine limited-time purchase benefits [1] - The vehicle features a length of 5,150mm and a wheelbase of 3,100mm, providing D-class interior space with a rear knee room of 165mm [2] - The powertrain includes the Kunpeng Super Energy Electric Hybrid CDM 6.0, achieving a pure electric range of 260km and a comprehensive range exceeding 2,500km [2] - The A9L can accelerate from 0 to 100 km/h in 4 seconds, showcasing the performance potential of electric hybrid technology [2] Group 2: Safety and Technology - The vehicle's body structure consists of 88% high-strength steel and aluminum, ensuring a solid passive safety foundation [2] - The Falcon Intelligent Driving Assistance System, supported by Momenta, enhances safety with capabilities such as active braking at 130 km/h and high-speed evasive maneuvers at 135 km/h [2] - The chassis system features advanced suspension technology, providing a balance of comfort and handling performance [3] Group 3: User-Centric Development - Since becoming an independent brand in November 2023, Fengyun has collected feedback from over 5 million users, incorporating 1,278 suggestions into the A9L's development [3] - The company emphasizes a user-driven research and development model, aiming to align product features with customer needs [3] Group 4: Company Vision and Future - Chery's chairman, Yin Tongyue, stated the company's commitment to genuine values, solid technology, and a focus on user experience, aiming for high-quality development [4] - The Fengyun A9L represents Chery's aspiration to position itself on the global stage, showcasing the appeal of Chinese brands [4]

Core Viewpoint - Chery Automobile has established a new domestic business group, focusing on four key divisions to enhance its market strategy and operational efficiency, particularly in the electric vehicle sector [1][2][7]. Group 1: Organizational Structure - Chery has created the Chery Brand Domestic Business Group, which includes four divisions: Xingtu, Aihua, Fengyun, and QQ [1]. - The Fengyun division is now independent and will focus on new energy vehicles, which is crucial for Chery's strategy to break into the EV market [2]. - The QQ division's establishment highlights Chery's strategic emphasis on the A00 microcar market, with models like QQ Ice Cream and Little Ant maintaining sales of 5,000 to 6,000 units per month [3]. Group 2: Sales Performance - The Fengyun T0 and T8 models have seen sales between 5,000 and 6,000 units over the past year, while the Fengyun A8 averages over 2,000 units sold monthly [2]. - The Fengyun T9, a mid-size SUV, has received nearly 70,000 orders in a year, indicating strong market demand [2]. Group 3: Strategic Goals - The organizational changes come as Chery aims for an IPO, having submitted its listing application to the Hong Kong Stock Exchange, with plans to raise $1.5 billion primarily for R&D and international market expansion [7]. - Chery's chairman has emphasized that completing the IPO by March 2025 is a top priority for the company [7].

Core Viewpoint - Chery Automobile has undergone a significant internal restructuring, establishing a domestic business group that includes four major divisions: Starway, Aihui, Windcloud, and QQ, aimed at strategic focus and resource integration [1][2]. Group 1: Organizational Changes - The establishment of the domestic business group is a strategic adjustment based on the company's goals and development needs [2]. - The four divisions will focus on different product lines: Starway for high-end vehicles, Aihui for classic products, Windcloud for new energy vehicles, and QQ for small cars [2][3]. - Li Xueyong, the Executive Vice President of Chery, will also serve as the General Manager of the new domestic business group [2]. Group 2: Sales Performance - Chery's best-selling models, the瑞虎8 and 艾瑞泽8, achieved sales of 202,100 units and 145,800 units respectively over the past year, contributing significantly to the company's overall sales [2]. - The艾瑞泽 and 瑞虎 series cover a price range from 50,000 to below 200,000 yuan, indicating a broad market presence [2]. Group 3: Focus on New Energy - The Windcloud division will focus on new energy vehicles, which is crucial for Chery's breakthrough in this sector [3]. - Current sales figures for Windcloud's models range from 5,000 to 6,000 units per month, with the best-selling Windcloud T9 receiving nearly 70,000 orders in a year [3]. - There is a need for improvement in brand marketing for Windcloud to compete with industry leaders like BYD and Geely [3]. Group 4: Strategic Importance of QQ Division - The establishment of the QQ division highlights Chery's strategic emphasis on the A00-level microcar market, with models like QQ Ice Cream and Little Ant maintaining monthly sales of 5,000 to 6,000 units [4]. - There remains a demand for short-range electric vehicles, indicating growth potential in the low-speed electric vehicle sector [4]. Group 5: Ongoing Integration Efforts - Chery's ongoing integration efforts include the independent operation of sub-brands like iCAR and Jietu, which have unique brand identities [5]. - The recent dissolution of the Dazhu Intelligent brand and the formation of the Chery Intelligent Center signify a push towards a more cohesive and efficient smart technology strategy [5]. - The company aims to enhance its intelligent strategy and resource focus through these structural changes [5].

Core Insights - Chery Automobile will hold a "Safety Technology Release Conference" on May 13, 2024, at its Wuhu crash safety testing facility to unveil its latest safety technology achievements and validate vehicle safety performance through multiple collision tests [1][3] - The event marks Chery's third "technology-themed release conference" following previous releases on intelligent and hybrid technologies [1] Group 1: Safety Technology Development - Since its establishment in 1997, Chery has continuously invested in automotive safety research and development [3] - In 2003, Chery formed the first domestic collision simulation team, and in 2008, the Chery A3 became the first Chinese brand A-class car to receive a C-NCAP five-star rating [3] - In 2023, the Star Era ES passed the NESTA six-dimensional electric safety certification for new energy vehicles [3] Group 2: Testing and Facilities - Chery plans to complete over 1,500 real vehicle tests at its crash testing facility in 2024 [3] - The Wuhu crash safety testing facility, established in 2010, is the largest of its kind in Asia [3] - The event will feature a continuous 5-hour live broadcast of various collision tests, including retests of classic models and simulations of complex accident scenarios [3] Group 3: Sales Performance - According to the latest data from Chery Group, the cumulative sales of vehicles from January to April 2024 reached 820,800 units, representing a year-on-year increase of 15.3% [4] - Exports totaled 343,200 units, maintaining the leading position among Chinese automotive companies [4] - Sales of new energy vehicles reached 224,600 units, with a year-on-year growth of 140.7% [4] - Chery's brands, including Chery, Exeed, Jetour, and iCAR, target various market segments such as family, high-end, travel, and new energy [4]

Investment Rating - The report maintains a "Recommended" investment rating for the automotive industry [2] Core Viewpoints - The launch of Xiaomi SU7 Ultra at a significantly reduced price of 529,900 RMB, down from the pre-sale price of 814,900 RMB, is expected to drive substantial growth in the supply chain [5][11] - The SU7 Ultra has received over 15,000 pre-orders within a day, indicating strong market demand and a projected delivery volume that will exceed the initial estimate of 10,000 units for 2025 [5][11] - The report highlights advancements in intelligent driving technology, with notable updates from Tesla and Chery, indicating a competitive landscape in the smart driving segment [12][13] Industry Dynamics - **Industry News**: Significant progress in FSD (Full Self-Driving) technology in China, with software updates starting from February 25 [12] - **New Models**: The report lists several new vehicle launches, including the Xiaomi SU7 Ultra, which is a fully electric sedan [31] - **Company Announcements**: Changan Automobile's subsidiary Avita Technology has completed a significant equity purchase from Huawei, indicating strategic partnerships in the industry [33] Market Performance - The automotive sector underperformed the broader market, with a decline of 2.72% from February 24 to February 28, 2025, compared to a 2.22% drop in the CSI 300 index [34][41] - The report notes a decrease in the price-to-earnings (PE) ratio for the automotive sector, which stood at 28.1 times as of February 28, 2025 [41] Data Tracking - **Monthly Data**: In January 2025, retail sales of passenger vehicles reached 1.794 million units, a year-on-year decrease of 12.01% [44][52] - **New Energy Vehicles**: Retail sales of new energy passenger vehicles were 744,000 units in January, with a penetration rate of 41.5%, reflecting a year-on-year increase of 8.73 percentage points [52][57] - **Intelligent Driving Penetration**: The penetration rate for vehicles equipped with L2.5 and above intelligent driving systems reached a historical high of 14.39% in December 2024 [59]