Chery’s Worldwide Manufacturing Approach Counters Tariff Barriers, Drives Historic Hong Kong IPO

Chery Automobile, China’s leading vehicle exporter, saw its shares jump by 11% during its first day of trading on the Hong Kong Stock Exchange on September 25, 2025. The company raised HK$9.1 billion (about $1.2 billion) through its IPO, which was set at HK$30.75 per share. This offering stands as the largest automotive IPO in Hong Kong for the year. Chery’s stock ended the day at HK$34.2, valuing the company at HK$197.2 billion. The initial listing event was postponed due to Super Typhoon Ragasa, which forced the cancellation of the ceremony. Chery plans to allocate the IPO funds to research and development (35%), next-generation technology (25%), and international expansion (20%), highlighting its commitment to growing its global presence title1 [ 1 ].

Since 2003, Chery has led China’s auto export rankings, and in 2024, it shipped 1.14 million vehicles overseas—representing 40% of its total output—outpacing competitors such as BYD and Great Wall Motor. Its Jetour SUV brand is preparing to launch in Europe this November, while the Omoda line is targeting markets in the UK and Australia. By expanding into regions like Vietnam, the Middle East, and Southeast Asia, Chery has reduced its exposure to global trade restrictions, including the 100% tariffs imposed by the U.S. and EU on Chinese electric vehicles. Establishing manufacturing operations in areas such as the Middle East allows Chery to bypass export taxes and maintain an advantage over rivals that still rely on production in China title2 [ 2 ].

China’s car exports have risen sharply, with forecasts suggesting the country could account for 30% of worldwide car sales by 2030, up from 21% in 2024. In August 2025 alone, Chery sold 242,736 vehicles, exporting 129,472 of them—an increase of 14.6% and 32.3% year-over-year, respectively. This growth mirrors a larger trend of Chinese automakers gaining ground in emerging markets, where cost-effectiveness and localized production are key drivers. For instance, in the first two months of 2025, Chinese brands made up 35.6% of the nation’s 1.32 million car exports, with Chery responsible for 25% (117,719 units) of that figure title8 [ 3 ].

Nonetheless, trade restrictions remain a major hurdle. The EU and U.S. have introduced tariffs as high as 45.3% and 100% on Chinese electric vehicles, and Canada followed suit with similar measures in 2024. Despite these obstacles, Chery’s approach—emphasizing local production and a product mix that favors fuel-powered cars—has helped shield it from the most severe effects. According to Tu Le of Sino Auto Insights, Chery’s global manufacturing network is “the envy of many Chinese EV makers,” especially as it gains momentum in markets like the UK and Australia title1 [ 4 ].

The strong performance of Chery’s IPO reflects investor optimism about the company’s future, particularly in regions more receptive to Chinese exports. Experts point to Chery’s affordable vehicle lineup and strategic alliances with firms like Huawei and Alibaba as major strengths. Meanwhile, the broader Chinese automotive sector is facing consolidation as trade barriers and excess capacity put pressure on the industry. Chery’s ability to overcome these challenges while expanding internationally positions it as a key force in transforming the global auto market title7 [ 5 ].