Chery Automobile, China’s second-largest carmaker by volume, plans to debut on the Hong Kong stock exchange in the third quarter of 2025, according to chairman Yin Tongyue.

The company, based in Wuhu, Anhui province, has filed for an IPO in Hong Kong to support its global expansion strategy.

The IPO is expected to raise around US$1.5 billion, Bloomberg reported, citing sources familiar with the matter.

Chery is working with the Hong Kong branches of China International Capital Corporation (CICC), Huatai Securities, and GF Securities as joint sponsors.

Chery is one of the few major Chinese automakers yet to go public.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Chery’s IPO comes after two decades of failed attempts amid industry transformation

Chery’s Hong Kong listing represents a breakthrough after numerous unsuccessful IPO attempts dating back to 2004, demonstrating both persistence and the changing dynamics of automotive investment1.

The timing is strategic as the company faces increasing pressure to fund its transition to electric vehicles, with substantial capital needed for research and development in new energy technologies1.

Despite strong financial performance, ranking third among Chinese automakers in revenue and net profit for the first nine months of 2024, Chery’s heavy reliance on traditional gasoline vehicles creates urgency for this capital raise1.

This IPO reflects a broader trend in China’s auto industry where traditional manufacturers must secure significant funding to compete with pure EV players like BYD that have already benefited from capital markets access.

The $1.5 billion target comes as China’s automotive sector undergoes its most significant technological transformation in a century, with companies needing unprecedented levels of investment to remain competitive.

2️⃣ Chery leverages export leadership while playing catch-up in EV transition

Chery stands out as China’s top independent passenger car exporter for 22 consecutive years, creating a substantial revenue stream that strengthens its IPO narrative despite lagging in electric vehicle development1.

The company’s strong international presence provides it a differentiated market position compared to many Chinese competitors, with significant market share across multiple regions globally1.

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