Chery's Global Production Strategy Thwarts Tariffs, Fuels Record Hong Kong IPO

China’s top car exporter Chery Automobile surged 11% in its Hong Kong stock market debut on September 25, 2025, raising HK$9.1 billion ($1.2 billion) in its initial public offering (IPO). The IPO, priced at HK$30.75 per share, marked the largest automotive IPO on the Hong Kong exchange this year, with the stock closing at HK$34.2, translating to a market capitalization of HK$197.2 billion. The listing was delayed due to Super Typhoon Ragasa, which canceled the planned ceremony. Chery’s IPO proceeds will fund research and development (35%), next-generation technologies (25%), and overseas expansion (20%), reflecting its strategic focus on global markets title1^[1].

Chery, which has dominated China’s auto export rankings since 2003, sold 1.14 million vehicles abroad in 2024—40% of its total production—surpassing rivals like BYD and Great Wall Motor. Its SUV-focused sub-brand Jetour is set to enter Europe in November, while its Omoda brand targets the UK and Australia. The company’s expansion into Vietnam, the Middle East, and Southeast Asia has mitigated risks from global trade barriers, including 100% tariffs in the U.S. and EU on Chinese electric vehicles (EVs). By manufacturing locally in regions like the Middle East, Chery avoids export duties and secures a competitive edge over peers reliant on Chinese production title2^[2].

China’s automotive exports have surged, with the country projected to capture 30% of global car sales by 2030, up from 21% in 2024. Chery’s August 2025 sales totaled 242,736 units, with 129,472 exported—year-on-year growth of 14.6% and 32.3%, respectively. The company’s success aligns with broader trends of Chinese automakers dominating emerging markets, where affordability and localized production drive demand. For example, in January–February 2025, local Chinese brands accounted for 35.6% of China’s 1.32 million auto exports, with Chery contributing 25% (117,719 units) title8^[3].

Trade barriers, however, pose significant challenges. The EU and U.S. have imposed tariffs of up to 45.3% and 100%, respectively, on Chinese EVs, while Canada mirrored U.S. policies in 2024. Despite this, Chery’s diversified strategy—leveraging local manufacturing and a product portfolio skewed toward fuel-powered vehicles—has insulated it from the harshest impacts. Sino Auto Insights’ Tu Le noted that Chery’s global production capabilities make it “the envy of many Chinese EV makers,” particularly as it gains traction in the UK and Australia title1^[4].

The IPO’s success underscores investor confidence in Chery’s growth potential, particularly in markets less hostile to Chinese exports. Analysts highlight its low-cost models and strategic partnerships, such as with Huawei and Alibaba, as key differentiators. Meanwhile, the broader Chinese auto industry faces consolidation as trade barriers and overcapacity pressures intensify. Chery’s ability to navigate these challenges while expanding its global footprint positions it as a critical player in reshaping the international automotive landscape title7^[5].