Chery Automobile Co. Ltd. has officially filed for its initial public offering (IPO) on the Hong Kong Stock Exchange on February 28, 2025, signaling its ambitions for substantial growth and expansion. This announcement marks one of the largest expected listings on the exchange this year. Based out of Anhui province in Eastern China, Chery is poised to attract investor interest with its remarkable recent performance, leading the charge as the top exporter of vehicles from China.
The company has distinguished itself by being the only passenger vehicle maker among the global top 20 to achieve over 30% sales growth for both traditional and new energy vehicles. Chery's impressive sales numbers showcase its upward momentum, with sales rising by 51.8% to reach 1.54 million units during the first nine months of the previous year. Notably, Chery is also recognized as China's second-largest independent car brand and the world's 11th largest auto manufacturer, as per data outlined in its listing documentation.
Chery's revenue surged to 182 billion yuan (approximately $25 billion), reflecting a year-on-year increase of 67.7%, and its net profit rose by 58.5% to 11.3 billion yuan during the same period. This positive growth trend highlights the company’s strategic positioning and market responsiveness. The firm has built its reputation as one of China’s major automakers since its establishment in 1997 and has been leading the charge as the top Chinese car exporter for the last 22 years. This long-standing dominance is underscored by its title for most overseas sales among independent Chinese car brands, making waves internationally.
With this IPO, Chery aims to raise funds primarily for three key initiatives: overseas expansion, the development of next-generation vehicle models equipped with advanced technology, and upgrades to its production lines based at its home facility in Wuhu. The company has established its footprint outside China by assembling vehicles in Malaysia and is currently working on joint venture manufacturing facilities in both Vietnam and Thailand, indicating its commitment to growing its international presence.
Chery’s strategic focus on electric and energy-efficient vehicles aligns with global automotive trends and consumer demands, positioning the company favorably for future growth. Its recent performance showcases its readiness to leverage new technologies and market demands, crafting vehicles not just for the domestic market but also for international buyers across various regions.
The IPO's main sponsors include prominent Chinese financial institutions such as CICC, Huatai, and GF Capital, reflecting strong institutional support for Chery's expansion plans. With the IPO, Chery is not just seeking to raise capital but is also reinforcing its reputation as a competitive player on the global stage.
Chery entered the Middle East market as early as 2001 and reached its first significant milestone by exporting over 1,000 units by 2004. This international exposure has contributed to its growth narrative and has prioritized building strong trade relationships across borders. The company’s efforts to scale its operations globally align with the broader narrative of Chinese automotive manufacturers gaining ground internationally.
To sum up, Chery Automobile Co. Ltd. is leveraging its impressive growth metrics and established market presence to fuel its next phase of expansion through its IPO on the Hong Kong Stock Exchange. With plans to invest the proceeds from this listing back to improve production capabilities, innovate new model designs, and expand globally, Chery is set to continue its ambitious growth story. Its historical significance as one of the earliest Chinese automakers and its current strategic initiatives indicate promising prospects for both investors and consumers eagerly watching the evolution of the company.