Chery is on its way to one of the largest IPOs of the year, one that Wall Street banks are abstaining from.
Chery Automobile Co is heading into its planned Q3 2025 Hong Kong Initial Public Offering (IPO) on the back of record-breaking performance and rapid global expansion—despite navigating an unconventional listing route that excludes major Wall Street players. The brand has long been China’s top exporter of passenger vehicles and has even made a major impact on the local car market with its multiple brands and models.
The IPO has been slated to take place in Q3 2025 and the company has taken this opportunity to post some really positive numbers. Chery’s first-half 2025 results showcase a company in growth overdrive:
- 1.26 million vehicles sold, up 14.5% YoY.
- 550,270 units exported, maintaining its position as China’s No.1 car exporter.
- 98.6% YoY surge in NEV sales, driven by its new Chery Super Hybrid (CSH) system.
- A 16.6% sales increase in June alone, capping off a historic first half.
These figures project a clear message to investors: Chery has evolved from a domestic player to a global force. Locally, Chery has proven to be the most successful Chinese car maker in Malaysia, putting about 40,000 cars on our roads between its many sub-brands since 2023. Contrast this to GWM and BYD, who have each sold 5000 and 18000 here respectively in the same timeframe. (source: Data.gov.my)
Global Footprint and Brand Strength
Chery isn’t just looking at niche markets like South East Asia, Latin America and the Middle East, they’re also undergoing rapid expansion into Europe—including launches in Poland, Spain, and Eastern Europe—aligns with its “In Europe, For Europe” strategy. The automaker also:
- Achieved WVTA certification (a prerequisite for EU sales),
- Secured dealer networks in 5 European countries, and
- Revived the EBRO brand in Spain.
This localized approach adds credibility to its global ambitions and boosts investor confidence in Chery’s scalability beyond China and emerging markets.
IPO Strategy: Local Expertise Over Global Brands
Chery’s IPO—expected to raise around US$1.5 billion—is notably being managed by China International Capital Corp, Huatai Securities, and GF Securities, without participation from international banks like JPMorgan, which reportedly withdrew before formal onboarding.
This choice reflects shifting trends in Chinese listings, with domestic banks offering cost-effective services and stronger alignment with local regulatory environments. It also highlights geopolitical caution, as some U.S. banks avoid firms with business in sanctioned markets like Russia, Cuba, and Iran. Chery has since ceased sales in Cuba and Iran, and is reducing its exposure in Russia where it shot up in sales since non-Chinese car brands withdrew from that market after the Ukrainian invasion.
While lacking global underwriters may raise some investor concerns about international perception, it reinforces Chery’s focus on homegrown financial ecosystems and independence.
