Core Viewpoint - Chery Automobile has officially launched its Hong Kong IPO process, aiming to raise funds primarily for new technology and model development, overseas market expansion, and smart manufacturing upgrades, marking a significant step in its global integration and brand internationalization [1][3]. Financial Performance - Chery's total revenue is projected to grow from RMB 92.6 billion in 2022 to RMB 269.9 billion in 2024, reflecting a compound annual growth rate (CAGR) of 70.7%. Net profit is expected to increase from RMB 5.8 billion to RMB 14.3 billion during the same period, with a CAGR of 57.1% [3]. - In 2024, Chery anticipates a revenue of RMB 269.9 billion, a year-on-year increase of 65.4%, and a net profit of RMB 14.33 billion, up 37.2% year-on-year, showcasing strong growth momentum [3]. - Chery's vehicle sales are projected to reach 2.295 million units in 2024, representing a 49.4% year-on-year increase [3]. Global Expansion - Chery has maintained its position as the top exporter of Chinese passenger cars for 22 consecutive years, with its vehicles sold in over 100 countries and regions, accumulating over 13 million units globally [3][5]. - The company has entered a new phase of globalization, termed "Overseas 3.0," establishing a comprehensive production layout both domestically and internationally, which reduces production costs and meets diverse market demands [5][9]. Brand Development - Chery has developed a brand matrix consisting of five brands: Chery, Jetour, Exeed, iCAR, and Zhijie, which contributed 91.5% of the company's total revenue in 2024, demonstrating strong brand synergy [4]. Technological Advancements - Chery has invested significantly in safety and technology, including an 18 billion RMB investment in a collision laboratory, which conducts over a thousand crash tests annually [7]. - The company has developed advanced hybrid power systems, achieving a thermal efficiency of 48% with its Kunpeng Tianqing engine, addressing industry challenges related to range anxiety and performance compromise [7][8]. Market Positioning - Chery's global network and localized operations provide a competitive edge, with overseas business contributing 37.4% of total revenue in 2024 [9]. - The company has established a robust dealer network with 2,958 outlets worldwide, enhancing its market presence and competitive barriers [9]. Future Outlook - Analysts believe Chery's investment value lies in its unique business model and sustainable growth potential, supported by over 20 years of global operational experience that is difficult for competitors to replicate [10]. - With the increasing penetration of global electric vehicles and the launch of new models and technologies, Chery is expected to maintain a high growth trajectory, particularly following the full-scale launch of localized production in Europe [10].

Core Viewpoint - The 2025 Munich IAA Auto Show marks a significant turning point in the global automotive industry's transition to electric vehicles, highlighting the tension between traditional European automakers and the aggressive strategies of Chinese manufacturers [1][2][18]. Group 1: European Automakers' Challenges - European automakers face a complex dilemma of slow transition and high costs, with electric vehicle prices remaining high and manufacturing costs, particularly for batteries, difficult to reduce quickly [19][33]. - The European Automobile Manufacturers Association (ACEA) warns that mandatory electric vehicle transitions could lead to a hollowing out of the supply chain, potentially impacting over 800,000 jobs [4][5]. - The shift to electric vehicles is complicated by a lack of charging infrastructure and consumer anxiety over range, which may drive consumers to purchase more fuel vehicles before the 2035 ban on combustion engines [6][27]. Group 2: Competitive Landscape - Traditional giants like BBA (BMW, Benz, Audi) are experiencing pressure from both internal and external competition, particularly from rapidly advancing Chinese electric vehicle manufacturers [7][9]. - Data shows that LGES remains the largest battery supplier for Volkswagen, providing 14.8 GWh of batteries, while Panasonic and SK On also have significant supply agreements with major automakers [11][12][13]. - A complex competitive landscape is emerging, with Japanese and Korean battery manufacturers holding significant existing and new orders, while Chinese companies are still establishing their foothold [17]. Group 3: Strategic Responses - Volkswagen is actively responding to market pressures by showcasing new entry-level electric vehicles at the IAA, aiming for a 70% share of electric vehicles in Europe by 2030 and investing €20 billion in battery factories [23][21]. - Mercedes-Benz is reevaluating its luxury strategy due to a 56% drop in profits, indicating a need to balance market share and cash flow while investing in various drive technologies [26][27]. - BMW is focusing on technological advancements with its "Neue Klasse" platform, investing over €10 billion to enhance its competitive edge in the electric vehicle market [28][31]. Group 4: Chinese Manufacturers' Strategies - Chinese brands are making unprecedented inroads into the European market, with a record 5.7% market share in the UK and Europe, and 10.7% in the electric vehicle segment [35][36]. - BYD is implementing a differentiated strategy in Europe, targeting both high-end and budget segments while committing to local production in Hungary and Turkey [40][41][42]. - Other Chinese manufacturers, such as Leap Motor and GAC, are also establishing local production and distribution networks, indicating a broad and deep penetration strategy in the European market [44][45].

Core Viewpoint - Chery Automobile has signed an agreement with Jameel Motors to launch Omoda and Jaecoo brands in the Iraqi market, indicating a strategic move to expand its presence in the Middle East [1][3]. Group 1: Market Demand and Growth - The Iraqi market has shown strong demand for new vehicles, with new car sales estimated to have increased by over 28%, reaching approximately 161,000 units [3]. - The automotive industry is a key sector in Iraq, accounting for 8%-10% of the country's total imports, which presents new opportunities for Chinese automakers [3]. Group 2: Export and Sales Performance - In the first half of this year, the number of cars exported directly from China to Iraq rose to 18,000 units, a 71.4% increase compared to the same period last year [3]. Group 3: Leadership and Strategy - Jameel Motors' Iraqi operations will be led by Kamal Sultan, who has over ten years of experience in the Iraqi market and has previously established sales networks for brands like Toyota and Nissan [5]. - The Vice President of Jameel Motors, Jasmine Wong, emphasized the importance of careful selection of overseas partners and a long-term investment approach for Chinese automakers, highlighting the need for comprehensive pre-sales and after-sales services to enhance customer satisfaction [5].

Core Insights - Chery Automobile reported that its sales in the European market exceeded 30,000 vehicles in the first half of the year, representing a nearly 11-fold year-on-year increase [2] - In 2024, Chery will launch the Omoda and Jaecoo brands in seven European markets, with its high-end brand Exlantix debuting in select Nordic countries [2] - The Jetour brand is set to enter the European market in the third quarter of this year, with more new brands and models planned to cater to diverse consumer needs [2] Strategic Developments - Chery has partnered with EVMotors, a traditional car manufacturer in Barcelona, Spain, to establish a joint venture factory, addressing EU tariffs on Chinese electric vehicles and creating numerous job opportunities [2] - The factory is expected to have an annual production capacity of 200,000 vehicles, with plans to increase the proportion of locally produced components to over 50% [2] Recognition and Growth - Chery Automobile ranked 233rd in the 2025 Fortune Global 500 list, climbing 152 positions from the previous year, marking the fastest rise among automotive companies in the ranking [2]

Group 1 - In May, Chinese automotive brands achieved a remarkable 85% year-on-year sales growth in Europe, surpassing 60,000 units sold, while the overall European market saw only a 1.3% increase to 1.116 million units [1][2] - The market share of Chinese automotive manufacturers in Europe reached a record high of 5.4%, up from 3% in the same period last year and 4.6% in April this year, indicating a growing influence in the European market [1][2] - The strong performance of Chinese brands offset the decline of European, Japanese, and South Korean manufacturers during the same month [1] Group 2 - In terms of vehicle types, sales of Battery Electric Vehicles (BEV) increased by 31% to 17,000 units, while Plug-in Hybrid Electric Vehicles (PHEV) saw an astonishing growth of 874% to 13,000 units, and Hybrid Electric Vehicles (HEV) rose by 991% to 9,560 units [2] - The market share of BEVs from Chinese manufacturers decreased from 41% last year to 29% in May, while PHEVs increased from 4% to 22%, and HEVs rose from 3% to 16% [2] Group 3 - BYD emerged as the fastest-growing Chinese automotive manufacturer, with total sales reaching 13,000 units in May, a significant increase from over 3,000 units last year, primarily driven by the Seal U model, which sold over 7,000 units [4] - Chery also experienced substantial growth, with sales reaching 7,963 units, a 900% increase, largely due to the introduction of the Jaecoo and Omoda brands in Europe [4] Group 4 - MG, which had previously halted exports to Europe due to EU tariffs, maintained its position as the sales leader in Europe with a total of 126,000 units sold in the first five months of the year, while BYD and Chery sold 54,000 and 29,000 units, respectively [6]