Chery Auto Aims for Landmark IPO with Ambitious Global Expansion Plans

The IPO represents a significant milestone for Chery Auto, a company that has been striving to go public for over two decades. Chery's journey to this point has been marked by several attempts to enter the capital markets, starting as far back as 2004. After multiple unsuccessful efforts, the company finally received approval to list on the Hong Kong Stock Exchange following a successful hearing on September 7. The road to the IPO has been paved with strategic initiatives, including a global roadshow, aimed at attracting investors and showcasing Chery's plans for robust expansion.

Chery Auto's ambitious IPO aims to raise between 1.5 billion USD to 2 billion USD, making it potentially the largest automotive IPO in Hong Kong this year. The funds from this offering are earmarked for expanding Chery's product portfolio with new passenger car models, investing in next-generation automotive technologies, and enhancing research and development capabilities. Additionally, Chery plans to upgrade its production facilities in Wuhu, Anhui Province, and increase its global market presence. These initiatives underscore Chery's commitment to innovation and international growth, positioning it as a formidable competitor in the global automotive sector.

Chery's financial health and market performance have been strong leading up to this IPO. According to Chery's prospectus, the company's revenue has seen a notable increase over recent years, from 12.87 billion USD in 2022 to 37.52 billion USD in 2024. In the first quarter of 2025 alone, Chery reported revenues of 9.48 billion USD. Net profits also mirrored this upward trend, reflecting Chery's operational efficiency and market demand. This financial stability is further augmented by record vehicle sales, which reached 2.60 million units in 2024, marking a 38.4% year-over-year increase. Such achievements have propelled Chery to become China's second-largest domestic passenger car brand and the eleventh largest globally, according to data from Frost & Sullivan.

Chery's strategic focus on international markets is evident as it continues to expand its export sales, which accounted for 44% of its total sales in 2024. This international thrust is part of Chery's broader vision to solidify its presence on the global stage. By August of this year, Chery had already sold 1.73 million vehicles, with export sales reaching 798,800 units. The company has set an ambitious sales target of 3 million units for the year, highlighting its aggressive expansion plans and confidence in capturing a larger share of the global market. These efforts are not just about scaling operations but are also focused on building a brand that resonates with international consumers.

Beyond its financial and strategic pursuits, Chery is also innovating in vehicle design and technology. The company has recently unveiled the iCar V27, an extended range electric vehicle (EREV) that promises to be a standout in Chery's product lineup. With a robust design and advanced features, the iCar V27 is set to launch in the fourth quarter of this year. This model underscores Chery's commitment to innovation and sustainability, aligning with global trends towards electric mobility. With its focus on cutting-edge technology and design, Chery aims to meet the evolving needs of modern consumers and establish itself as a leader in the automotive industry.

Chery's IPO is more than just a financial transaction; it is a strategic leap towards a future where the company envisions itself as a global automotive leader. The funds raised will not only support immediate growth but will also pave the way for long-term success in an increasingly competitive market. As Chery navigates this new chapter, its focus on innovation, international expansion, and financial resilience will be crucial in defining its trajectory. In a rapidly evolving automotive landscape, Chery's strategic initiatives and commitment to excellence position it well for sustainable growth and global recognition.