Never would one have imagined! First, an overseas wheel detachment accident occurred, and Malaysia initiated a recall first; now the domestic announcement has finally been implemented! Chery is recalling 53,882 Tiggo 5x and Omoda units, with the same root cause: poor rear axle welding!

Many people should still remember that recently, an OMODA5 in Malaysia directly suffered a rear axle tear and rear wheel detachment on the road, and the video spread across the entire internet. At that time, Chery immediately initiated a recall in Malaysia, a total of 8,878 overseas OMODA5 units. It was the same issue: insufficient welding strength of the rear axle trailing arm and sleeve. Under extreme operating conditions, the weld seam tore directly, causing the wheels to lose control!

And now, this domestic recall announcement is officially here! Reference number S2026M0146V. Starting from November 27th, recalling Tiggo 5x and Omoda models produced from June 6, 2022 to December 31, 2023, totaling 53,882 units!

The hazard is exactly the same: a rear axle manufacturing welding defect. Under extreme conditions, the weld seam detaches, and the wheels directly lose control. This is not a minor noise or a minor electronic fault; it involves a core chassis structural component, which is a safety risk that can directly lead to major accidents!

Solution: Visit the store to check the rear axle production date code for free. If it is a defective batch, the entire rear axle assembly will be replaced for free.

As you can see! This time, it is not handled separately overseas while domestically pretending nothing is wrong. It is the same problem. Overseas recalled first after the incident occurred, domestically followed up with a filed recall. At least, the same problem triggers the same recall for both China and foreign markets; for this, Chery deserves a thumbs up.

However! The root cause of the problem is indeed very clear: poor welding, which is a quality control failure on the manufacturing side. As a global model mainly focused on exports, Omoda (OMODA5) is Chery's main force for going global. A basic process like chassis welding should never have such a low-level blunder. What do you think?

I also want to remind all Tiggo 5x and Omoda owners again, please verify your vehicle's factory production date immediately! If you fall within this interval, do not take chances, chassis hazards cannot be delayed. Usually when driving, if rear wheel shaking or chassis noise appears, do not drive on highways, go to the dealership immediately to check and eliminate the hazard!

It is not easy for domestic brands to go global. While sales are climbing, the quality control bottom line cannot be loosened. A recall is a remedial measure, not a pardon. Car manufacturers must attach great importance to this, and users must keep a sharp eye.

In accordance with the requirements of the "Regulations on the Administration of Recall for Defective Automotive Products" and the "Implementation Measures for the Regulations on the Administration of Recall for Defective Automotive Products", Chery Automobile Co., Ltd. has filed a recall plan with the State Administration for Market Regulation.

The specifics are as follows.

Recall Number S2026M0146V:

Starting from November 27, 2026, selected Chery Tiggo 5x and Omoda series vehicles produced between June 6, 2022, and December 31, 2023 will be recalled, totaling 53,882 vehicles.

Some vehicles within the scope of this recall have manufacturing issues with the rear axle, specifically potential poor welding in the rear longitudinal arm and sleeve; in extreme cases, the weld at this location may fail and separate, causing loss of wheel control, increasing the risk of vehicle malfunction, and posing a safety hazard. Chery Automobile Co., Ltd. will free of charge check the production date code of the rear axle for vehicles within the recall scope. If it belongs to a defective batch rear axle, the solution is to replace the rear axle to eliminate safety hazards.

Figure 1: Tiggo 5x

Figure 2: Omoda

Prior to this recall, the Omoda overseas version OMODA 5 experienced an axle breakage accident in Malaysia, with the rear wheel detaching while driving; Chery Automobile responded quickly and apologized, recalling 8,878 vehicles, followed by initiating overseas recalls and investigating domestic vehicle risks, and shortly thereafter, the aforementioned recall occurred. Meanwhile, the older version of the overseas OMODA 5 has been discontinued, and the brand new CHERY 05 has cancelled the use of torsion beam non-independent rear suspension, adopting a multi-link independent rear suspension instead. The structure is different, so there is no need to worry about this batch of vehicles.

However, although Chery Automobile's attitude is commendable, such issues should indeed not have occurred.

It is believed that Chery Automobile, having suffered this setback, will invest more in the control of product quality in subsequent products.

Recently, Chery released its performance results for the first three quarters of 2026. In the context of the industry's overall performance narrowing, Chery achieved industry benchmark revenue results by relying on a reasonable global layout.

According to Chery's official data, its revenue for the first three quarters reached 241.234 billion yuan, a year-on-year increase of 12.29%; gross profit was 39.004 billion yuan, a year-on-year increase of 32.28%; gross profit margin increased significantly from 13.6% at the same period last year to 16.17%, net profit was 14.595 billion yuan, and net profit margin reached 6.05%.

In the first three quarters of this year, the revenue profit margin of the domestic automotive manufacturing industry was 3.3%, the single-month profit margin in September dropped to 1.4%, and the total industry profit decreased by 22.8% year-on-year. In comparison, Chery's performance remained stable with an upward trend, proving that its current strategic approach is highly effective.

Overseas Markets Support the Overall Picture

In the first three quarters of this year, Chery's total passenger car sales were 2.0769 million units, of which 1.4991 million units were exported, accounting for over 70%. Chery is the only car company capable of having overseas sales double the domestic sales.

This is also the key for Chery to achieve high revenue and high profits. In the first half of the year, Chery's overseas market revenue was 98.968 billion yuan, a year-on-year increase of 51%, accounting for nearly 70% of total revenue. This proportion is absolutely leading among independent car manufacturers that have publicly disclosed data. More critically, Chery's overseas business profitability is far higher than domestic. The overseas fuel vehicle gross margin is stable at 18.1%, overseas new energy vehicle gross margin is about 20%, and hybrid product gross profit performance is even better.

It is not difficult to see that the key behind the crazy overseas expansion of Chinese car manufacturers in recent years is profit improvement. Chery has built a solid "profit moat" with the high gross margin of overseas markets. While most Chinese brands are still struggling against involution with domestic market profits, Chery has already formed a healthy cycle of "offsetting domestic low gross margin with overseas high gross margin". This advantage is difficult for other leading car companies to replicate in the short term.

As is well known, Chery's overseas business was not built in a day. Having cultivated the overseas market for more than 20 years, Chery has comprehensively upgraded from simple "product going global" to "Globalization 3.0", aiming to move R&D, manufacturing, supply chain, and decision-making power all to the overseas market in advance, becoming a truly global car company.

This year, Chery activated its first overseas regional operation center in Barcelona, Spain, and simultaneously launched the Spain Research Institute, placing all core decision-making links of the European market locally for completion. In South Africa, Chery acquired the Rosslyn Plant from a global large car manufacturer, launched a localization plan, and strives to achieve a target of 40% localization rate for passenger car production in South Africa before 2028.

Currently, Europe has become an important market for Chery. Data shows that Chery's sales in the EU + UK + EFTA market ranked first among Chinese brands in September. In addition, Chery has ranked first in new car brand sales in the UK for two consecutive months. For every 10 new cars sold locally, 1 comes from Chery. The European market has extremely high requirements for safety, compliance, and channels. Chery can stand firm and become mainstream, relying on Chery's globalization system capabilities.

According to the plan, the proportion of overseas-produced cars in Chery's exported cars will exceed 50% for the first time by the end of 2026, rise to 60% in 2027, and reach 70% in 2030. Behind these numbers is Chery's ambition to completely rewrite "going global" to "globalization".

Technology is King, Innovation Wins

Good performance relies on capabilities, and Chery is the same. An enterprise with a tag of "Science and Engineering Guy", values user recognition of product technology.

Chery's R&D expenditure for the first three quarters was 11.046 billion yuan, a year-on-year increase of 40.21%. The R&D growth speed is 3.3 times the revenue growth speed, and the proportion of R&D expenditure to revenue rose from 3.67% at the same period last year to 4.58%. In an environment where the whole industry is cutting back spending and protecting profits, Chery instead intensified technology investment against the trend.

These R&D funds were not all invested in short-term realization projects, but concentrated on basic technology directions such as electric drive, hybrid transmissions, batteries, solid-state batteries, and AI large models. Including CheryMind Physical AI Large Model, Xunlong Instant Charge, Rhino S Solid-State Battery, Ziwei Chip, V2G Vehicle-Grid Interaction and other frontier technologies. These layouts are redefining cars from traditional mechanical products to AI-driven energy terminals. Especially V2G Vehicle-Grid Interaction technology, which has extremely high commercial value in overseas markets with insufficient grid stability, turning vehicles from pure consumer goods into distributed energy storage nodes.

The impact of underlying technology on Chery products is far-reaching. Especially in the context of a market where new energy is mainstream, car companies that can connect the technology chain are more likely to gain discourse power in the next round of market competition.

Just like the current status of Chery New Energy, its wholesale volume has ranked in the top three of the industry for 6 consecutive months. The new QQ3 has broken through 10,000 units in sales for six consecutive months, and still has 100,000 units of global orders pending delivery; Fengyun A9 delivered over 7,000 units in September, with single-month orders breaking 20,000 units; Zhijie V9 has ranked first in the market for MPV above 400,000 yuan for 4 consecutive months since its launch. Simultaneous growth of multiple categories and price ranges is not propped up by a single hit product, but the full realization of a complete product matrix.

It is worth mentioning that Chery New Energy's profitability is gradually rising. In the first half of the year, the gross margin of the new energy business increased significantly from 5.2% at the same period last year to 12.8%, officially entering the profit realization cycle.

For every 7 new energy vehicles exported in China, 1 comes from Chery. Its new energy products have topped sales in multiple segments in Thailand, Malaysia, South Africa, and other places. The volume in the overseas market further amortized R&D and manufacturing costs, allowing Chery's new energy business to say goodbye to the stage of "exchanging price for volume".

More importantly, Chery did not get involved in the price war of "exchanging profit for sales". Currently, price wars in the domestic market have crushed single-vehicle profit to just over 1,000 yuan. Simply comparing who is better at involution and who can cut prices is no longer of much significance. Chery's financial report tells the whole industry that the next round of victory depends not on domestic involution, but on who can truly run through the globalization capability and who can establish a sustainable profit channel in the overseas market. Chery's globalization is also a benchmark for sustainable development needed by the current Chinese automotive industry.

When mentioning Chery, many people's first impression is still "a major car exporter". Today, this Chinese automaker that has long relied on fuel-powered vehicles to open up overseas markets is rewriting its own growth structure with new energy vehicles.

According to Chery's latest production and sales data, in October 2026, Chery Group's new energy vehicle sales reached 140,893 units, up 27.7% year-on-year, breaking 100,000 units for 7 consecutive months, setting a new monthly record.

In the first 10 months of this year, Chery's new energy vehicle cumulative sales reached 999,417 units, up 43.2% year-on-year, exceeding last year's full-year level.

Image Source: Chery

Placing this in the global market, Chery's new energy scale is also expanding. According to data from the China Passenger Car Association and other institutions, from January to August of this year, Chery Group's new energy vehicle global market share reached 5.5%, entering the top five global automaker groups.

However, another number is more worth paying attention to than the ranking.

From January to October this year, Chery's new energy vehicle cumulative exports reached 614,065 units, up 130.4% year-on-year. Calculated based on the total new energy sales in the same period, the export share has exceeded 60%.

In other words, for every 10 new energy vehicles Chery sells, more than 6 are sold abroad.

As domestic new energy vehicle market competition becomes increasingly fierce, the overseas market is becoming an important support for Chery's new energy growth.

From a major fuel vehicle exporter to the global top five in new energy

In the past few years, fuel vehicle exports have always been an important pillar of Chery's global operations.

Today, new energy vehicles are beginning to play an increasingly important role.

Image Source: Chery

In October this year, Chery's new energy vehicle exports reached 84,728 units, up 108.6% year-on-year, significantly higher than the 27.7% growth in overall new energy sales in the same period.

The changes in the European market are particularly obvious.

From January to September this year, Chery sold 292,000 cars cumulatively in 24 European countries, up 182%; among them, new energy vehicles exceeded 146,000 units, up 251%.

This means that for every two cars Chery sells in Europe, about one is a new energy model.

Image Source: Chery

In terms of products, brands such as OMODA and JAECOO are expanding their coverage in the European market. Among them, JAECOO 7, JAECOO 5 and OMODA 5 entered the top ten best-selling car lists in the UK, and iCAUR V23 is expanding niche demands in markets such as Thailand and Malaysia.

At the same time as overseas market growth, Chery is also accelerating the improvement of its new energy product matrix domestically.

From mainstream pure electric small cars to family sedans and personalized SUVs, to high-end MPVs, Chery covers more segmented markets through different products and brands such as QQ, Fengyun, iCAR, and Luxeed.

In terms of technology, Rhino Battery, Xunlong Fast Charge and V2G technologies constitute an important part of Chery's electrification layout. Among them, the solid-state battery plan will carry out vehicle installation verification in 2027, and Xunlong Fast Charge has proposed the technical goal of "charging for 5 minutes, range of 500 kilometers".

However, there is still a gap between technical planning and scaled application. For Chery, how to convert technical investment into product competitiveness recognized by different markets will directly affect the continuous growth of new energy vehicle business.

After selling globally, need to take root globally

Doubling new energy vehicle exports means Chery is accelerating the opening of overseas markets.

But the larger the export scale, the more prominent the importance of local operations becomes.

Just recently, Chery Holding Group Chairman Yin Tongyue specifically addressed this issue at the 2026 World Intelligent Connected Vehicle Conference.

Yin Tongyue believes that automotive internationalization cannot be limited to exporting finished vehicles, but should shift from "selling globally" to "growing globally, taking root globally", deeply integrating into local technology chains, supply chains and value chains.

He also warned that Chinese automakers need to be vigilant against blind expansion and malicious price competition, to avoid repeating the early days of motorcycles going overseas for low-price competition, otherwise, "going global" could turn into "filling the sea".

These reminders, placed against Chery's latest sales data, have more direct practical significance.

Image Source: Chery

Currently, Chery is promoting local layout in markets such as Malaysia, South Africa, and Spain. Among them, the South Africa Roslin plant promotes the local manufacturing system to transform towards electrification and intelligence by transforming existing capacity; the Malaysia project plans to promote the layout of integrated R&D, production, supply and sales.

From exporting finished vehicles to integrating local manufacturing resources, Chery's globalization business is extending to more links of the industrial chain.

However, the new energy vehicle export share exceeding 60% also means that Chery's future operating performance will be more affected by overseas policies, market demand and supply chain changes.

Especially in mature automotive markets such as Europe, sales growth is just the first step to enter competition. Product reliability, brand awareness, after-sales service and local cost control will all affect long-term operating performance.

In the past, Chery established a sales channel covering the globe relying on fuel vehicles; today, new energy vehicles are becoming the new growth pillar.

Sales volume close to one million proves that Chery has entered the forefront of global new energy vehicle scale competition. And an export share of more than 60% has also placed a more complex globalization challenge in front of Chery.

Next, what is more important than how many vehicles are exported is whether Chery can truly keep the market.

Organizational surgery of the export champion and the quality cracks they try to stitch up.

In October 2026, Chery Automobile (HK:09973) had information density so high it was nearly overload; two sentences from the company's chairman Yin Tongyue are particularly worth pondering.

One sentence was at the 2026 Global Innovation Conference: "Chery is a high-tech innovation company wearing the guise of an automaker." The other was at the 2026 World Intelligent Connected Vehicle Conference, responding to the Malaysia OMODA 5 recall event: "Going global is not about harvesting, you must be humble and low-key, no boasting, blind expansion makes it easy to turn into land reclamation."

One is an offensive identity declaration, the other is a defensive self-reminder.

Putting these two sentences together, Chery's real situation emerges: it is using a new high-tech company vest to争取 valuation flexibility and strategic depth; but the manufacturing organization underneath the vest that defines itself by export scale, with system capabilities not yet synchronized globally, determines how far it can go.

More notably, Zhang Guibing's personnel adjustment is exactly a key stitch Chery Automobile dropped when trying to stitch the "vest" and "substance" together.

01

On November 1st, Chery Automobile announced: October sales were 282,500 units, up 7.2% year-on-year.

Among them, Chery brand sales were 200,600 units, up 18.2% year-on-year; Exeed sales were 5,637 units, down 40.6% year-on-year; Jetour sales were 58,400 units, down 1.1% year-on-year; iCAR sales were 11,700 units, down 5.5% year-on-year; Luxeed sales were 6,090 units, down 52.5% year-on-year.

For the first 10 months, Chery cumulative sales were 2.3593 million units, up 10.1% year-on-year; exports were nearly 1.7 million units, accounting for about 72%; new energy vehicle cumulative sales were 918,000 units, accounting for about 38.9%.

This set of data shows that Chery's growth is still mainly driven by exports and the main brand, and differentiation between brands is already very obvious; only the Chery brand grew year-on-year.

Scale is still growing, but the growth structure has exposed problems: Chery is becoming more like a company defined by exports, rather than a company defined by global system capabilities.

02

The day before the sales release, Chery Automobile's third-quarter report laid out the other side of scale growth.

In the first three quarters of this year, Chery Automobile revenue was 241.234 billion yuan, up 12.3% year-on-year; net profit attributable to parent company was 13.963 billion yuan, down 2.8% year-on-year.

More notably, Chery realized an exchange gain of 2.974 billion yuan during the same period last year, whereas in the first three quarters of this year, it faced an exchange loss of 3.171 billion yuan.

Revenue is increasing, profits are contracting. The higher the export proportion, the greater the disturbance of exchange rate fluctuations on the income statement; the more aggressive the R&D, the more short-term profit needs scale and quality credit to support it.

However, Chery recently encountered a troubled period in the overseas market. The National Day holiday hadn't even ended before Chery played a big game.

03

On October 6th, in Iskandar Puteri, Johor, Malaysia, a 2023 model OMODA 5 had its rear axle longitudinal arm break while driving, the rear axle connected to two rear wheels detached directly, the vehicle stopped in the middle of the road, fortunately no personal injury was caused.

On the evening of October 11th, Chery Automobile issued a statement saying that this batch of vehicles might have insufficient welding strength at local welding positions of the rear axle longitudinal arm, with a risk of welding tearing in extreme cases; Chery Malaysia subsidiary has started a recall for the affected 8,878 OMODA 5 units.

This event happened shortly after the HIMA brake pedal incident, basically falling within the same public opinion window, and provided practical evidence for the urgency of the new regulations issued by the Ministry of Industry and Information Technology and four other departments on October 10th with extremely high visibility.

Regardless for Chery, which has ranked first among Chinese brand passenger car exports for 23 consecutive years, or for other Chinese automakers who are making exports their second growth pole, this is simply a shake and disaster for the quality reputation of Chinese brands.

More critically, Chery is using Malaysia as a localization pivot for Southeast Asia.

In this market where they are preparing to take root long-term, investing capacity and channels, the mass-selling model OMODA 5 having its rear axle break twice in the same way within two years, the impact is not just sales, but the fundamental judgment of local regulators and consumers on whether Chery's manufacturing system is reliable.

04

The response from the Malaysia Land Transport Authority (JPJ) confirmed the severity of this judgment.

During the first axle break in 2024, JPJ only required a recall, no vehicle model certification freeze. But this time, JPJ directly suspended the OMODA 5 vehicle model certification (VTA), new car registration was completely stopped, and at the same time expanded the audit scope from certain batches of parts to Chery's production assembly line, quality control system, and rear axle supplier welding inspection procedures.

The blade of regulation cut from products to systems, this is much more important than the recall of 8,878 units itself. Yin Tongyue apologized directly to Malaysian Industry Deputy Minister high officials recently, which already explains the severity of the problem.

With scale accumulation being completed quickly, it is asking this company to use slow capabilities to support its endurance. Committing the same mistake twice makes it hard to get forgiveness.

"Autos K-Line" believes that the globalization of listed automaker sales systems can be spread out with channels and products within a few years, but the globalization of quality systems cannot be compressed by speed, nor tolerate even a tiny error.

From the timeline perspective, the Malaysia recall is not the trigger for Chery's personnel adjustment, but in an unforgiving way, it proved the authenticity of the disease that the personnel adjustment needs to treat: when sales end globalization runs ahead of the quality end, speed itself becomes a negative asset for brand credit.

05

When exports become the only growth engine, and premiumization cannot create brand premium in the domestic market, Chery faces a dilemma that must be broken - domestic and foreign operating separately, while the brand capability and quality credit that truly determine long-term profits must be unified under global standards.

Therefore, Zhang Guibing's task is not just to save a recall, but to demolish this wall.

On October 7th, Chery Automobile issued "Announcement on Deepening Globalization 3.0 Strategy Executive Division Adjustment", announcing the integration of the Chery main brand into the global market system, Chery Automobile Executive Vice President Zhang Guibing directly manages the Chery brand domestic business group, concurrently serving as General Manager of International Business Business Group, Chairman of Market and Marketing Management Committee; Executive Vice President Li Xueyong manages the Jetour Brand Business Unit, focusing on promoting the premiumization development of Jetour brand.

Zhang Guibing has been at Chery for 27 years, the brightest background comes from overseas.

He started as a quality engineer, ran through Chery's first overseas CKD project, ground out local experience in Brazil's tariffs, exchange rates and union environment, subsequently managed international business for a long time, spreading channels to over 130 countries and regions.

Putting such a person in the position of Chery brand domestic business group, while letting him continue to concurrently serve as General Manager of International Business Business Group, and coordinate global styling, HR, legal, spare parts, and MoJia Robot, Chery's intent is very clear: use the person most familiar with overseas battlefield standards to force the domestic system to accept global quality benchmarks and operational discipline.

In the October sales volume, Chery was the only main brand with year-on-year growth, which gives Zhang Guibing's task more weight: the main brand is not only Chery's current growth leader, but also the test field for quality system globalization.

Export proportion exceeding 70% means overseas is no longer Chery Automobile's supplement, but the main battlefield; but the main brand's production R&D, supply chain and channel teams still run with strong domestic market inertia.

Letting Zhang Guibing hold both ends at the same time is essentially pulling the global resource pool and regional markets into the same decision loop, using overseas already-verified systematic capabilities to irrigate the domestic in reverse. Zhang Guibing's style is results-oriented and rapid, which is exactly the character needed to demolish walls.

However, one person carrying main brand operations, international business, global functions and new robot business, power and responsibility highly concentrated itself, constitutes a risk variable that needs to be observed.

06

Zhang Guibing's other identity is General Manager of MoJia Robot.

He said very plainly about MoJia's positioning, automobiles and embodied robots share about 70% of technology that can be synergistically reused, MoJia is the first domestic robot enterprise to transplant supply chain system to automobile parts suppliers, synergy covering technical, manufacturing system and channel after-sales three levels.

At the 2026 MoJia Robot Global Launch Conference, Zhang Guibing disclosed, MoJia Robot global sales volume has exceeded 3,000 units, covering over 100 application scenarios, products and services entered 60 countries and regions.

However, MoJia's true strategic value for Chery lies not in short-term sales, but that it is Chery's only carrier able to enter the global market in a non-automotive identity. As technical products entering overseas markets, robot development flexibility and error tolerance space are not in the same magnitude as full vehicles.

Placing MoJia under Zhang Guibing's coordination, alongside global styling, HR, legal, spare parts, shows Chery has already treated it as a component of the global operation system organizationally, rather than a new track needing separate cultivation.

Yin Tongyue complained publicly in April 2026: "Although we embrace AI in every dimension, in the eyes of many capital market people, we are still treated as traditional automakers, so our price-earnings ratio is still low."

Admittedly, Chery H-share current P/E ratio is about 6.5 times, market cap hovers around 130 billion HKD, market pricing logic is still an export-oriented traditional full-vehicle manufacturer.

MoJia, Robotaxi, eVTOL, Agricultural Machinery these extensions, short-term are not enough to change Chery Automobile's profit structure.

However, they jointly bear a function, that is before premiumization in the auto main business realizes brand premium, fight for a blueprint framework and longer time window for Chery in industry discourse and capital market different from export automakers, use technology reuse to create strategic depth.

07

However, technical depth itself cannot automatically solve system credit problems.

Less than ten days after the Malaysia recall statement, Chery officially launched the industry's first Vehicle-to-Grid V2G scaled operation station on October 16th, 400Wh/kg solid-state battery appeared and gave 2027 mid-pilot production line commissioning plan.

On October 19th, CATL Chery (Wuhu) New Energy Technology Co., Ltd. was established, registered capital 1 billion yuan, CATL holds 51%, Chery holds 49%, this is already the second battery joint venture company between the two this year.

Third-quarter report shows, Chery first three quarters R&D expenses 11.046 billion yuan, up 40% year-on-year, provided financial footnotes for these technical actions. Chery's attack depth on electrification core links not only did not stop, but is accelerating.

But precisely because depth is real, the defensive cracks exposed by Malaysia rear axle weld seams may be even more eye-catching.

V2G and solid-state batteries point to future product competitiveness, rear axle detachment points to safety credit of products already running on the road.

In the view of "Autos K-Line", Chery has the ability to push technical depth to 2027, but failed to prevent a rear axle longitudinal arm from cracking on the Malaysia road in 2026 in the defense end. The deeper the attack depth, the less the defense bottom line should be torn.

08

Another noteworthy thing is, Luxeed entered the Ministry of Industry and Information Technology 412th batch "Proposed New Admitted Vehicle Production Enterprise" list on October 16th, production address is No. 8 Wuhuan Jiang Road, Wuhu; in the same batch of documents, the factory district Chery Automobile applied to cancel registration is exactly this factory district.

This means the qualification Luxeed obtained is not new capacity, but Chery transferring the production entity status of an existing factory, along with capacity, overall moved to Luxeed. This also means, from now on, new car rear badges no longer must hang "Chery".

Qualification landing, let Luxeed in law no longer be just "a product line inside Chery factory", but market level independence will not automatically solve within short time because of a announcement.

First 10 months of 2026, Luxeed cumulative sales 49,700 units, down 29.6% year-on-year, average monthly sales less than 5,000 units; beginning of 2026 set 300,000 to 350,000 units annual sales target, now completion rate less than 20%.

Sales decline and independent qualification landing combined together, make Luxeed "being pushed out" urgency stronger.

Luxeed management layer also underwent collective blood change in 2026, Guo Rui, Zhao Changjiang etc. with Huawei and BYD background people entered core positions. Pushing Luxeed out for independent accounting, independent financing, even leaving institutional space for future independent listing, essentially is Chery in listed company statement level a "stop bleeding" action.

This constitutes two sides of the same organizational surgery with Zhang Guibing's personnel adjustment.

Zhang Guibing's task is to pull domestic main brand into global system, using overseas standards force domestic system upgrade; Luxeed independent task is to peel the premiumization burden off main brand and listed company body, let Chery's core resources be more concentrated toward export main battlefield and quality system repair.

One does addition, one does subtraction.

At the performance communication meeting held on October 31st, Chery Automobile Executive Vice President Qi Shilong responded to Luxeed independence said, hope Luxeed team is more like new force enterprises, not simply made into "big-sized" traditional automakers.

After third-quarter report release, Citigroup downgraded Chery Automobile net profit forecast and target price, Soochow Securities included export tax refund reduction impact into profit expectation, Guotai Junan Securities downgraded net profit attributable to parent company expectation, these actions may to a certain extent reflect market worry.

For profit timeline concerned by outsiders, Chery Automobile management layer estimated, domestic new energy business is expected to gradually achieve break-even in second half of 2027; for 2027 overseas market, management layer gave target of year-on-year growth about 20%, and expressed actual performance is expected to exceed this expectation.

Views of AutosKline:

For Chinese listed automakers, globalization first half is about who sells cars farther, second half is about who on others' roads, under regulation and in front of consumers, makes cars more reliable!

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Recently, Chery Chairman Yin Tongyue said some ill-timed words at the 2026 World Intelligent Connected Vehicle Conference: "We should learn from the experience of motorcycles going global; we must firmly avoid a price war; prepare well and do not go global blindly." He also reminded peers not to become "overseas boasters" abroad.

The reason these words were piercing was not because they were harsh, but because they were timely. In 2026, the global expansion of Chinese cars is at its most frenzied moment: exports will break 12 million units, 20 out of 60 brands at the Paris Motor Show are from China, overseas factory planned capacity is close to 7 million units, and almost every car company has "go global or get out" on their lips. At this moment, China's largest car exporter said: Don't learn from motorcycles.

Someone who has already sold cars to over 130 countries could have talked only about achievements. He insisted on talking about lessons. Few people in the industry understood the weight of this sentence.

Over twenty years ago, Chinese motorcycles experienced a complete demise in Vietnam. In 1998, Japanese brands accounted for 98% of the Vietnam market, selling cars for $2,000 each; Jialing, Zongshen, and Loncin rushed in with wholesale prices of $700 to $800, capturing nearly 90% of the market share by 2002. Then the price war began: $800 dropped to $700, then to $600, and finally fell to $170; selling a car only earned over thirty yuan. Steel sheets became thinner, engines used non-standard parts, and after-sales service points were not built. In 2003, a frame fracture accident was exposed by television, triggering an avalanche of trust. By 2006, Japanese brands regained over 95%, and Chinese motorcycles were left with less than 1%.

What killed Chinese motorcycles was not low prices, but the lack of a retreat after low prices: profits were too thin to invest in quality, service, and brand; a single accident could cause the entire category to perish.

Cars are not motorcycles. But that transmission chain—price wars, thinning profits, quality and service hemorrhaging, trust collapse, policy backlash—has already appeared in Thailand, Europe, and Russia simultaneously.

More exports, more like motorcycles back then

The underlying logic of domestic price wars is overcapacity, product homogenization, and dealers holding inventory. In the first half of 2026, domestic passenger car retail sales slid 20% year-on-year, industry profit margin was 3.3%, and capacity utilization was 70.8%, below the 80% break-even line. Cars are not selling well, so exports became the pressure relief valve.

Exports in the first 9 months of 2026 reached 8.63 million units, with the proportion of total production moving from two tenths close to three tenths. Chery exported 1.344 million units in 2025, and BYD exported 1.054 million units. The numbers look good, but the pressure relief valve has side effects: the domestic tactics will go out with the cars.

More alarming is that going global has become a collective sprint. Over 130 overseas production bases, 7 million units of planned capacity, and 20 Chinese brands at the Paris Motor Show; everyone is racing for the window. Yin Tongyue's warning came at this moment of collective sprint, when suddenly someone shouted: There is a cliff ahead.

The cars are the same batch, the dealers are the same rebates and inventory pressing, the sales pitch is still "drop a bit more to increase volume." The only change is that overseas market depth is shallower, consumer patience is shorter, and policy hands are harder.

In August 2026, the Ministry of Commerce, Ministry of Industry and Information Technology, and State Administration for Market Regulation jointly issued the "Guidelines on Overseas Competitiveness Behavior and Compliance Construction for the Automotive Industry," clearly requiring car companies to avoid "frequent and significant price fluctuations affecting overseas consumer interests and brand image," and to respect local dealer independent pricing rights. The regulatory layer saw the danger before the companies.

Exports are not a cure, they are painkillers. Cars that don't sell domestically won't become good business just with a different customs.

Thailand acted it out first: subsidy withdrawal, share dropped from 47% to 11%

In 2025, Chinese brands sold 134,000 units in Thailand, market share 22.2%, Japanese brands first dropped below 70%. In January 2026, Chinese brands won 47.34% to 47.33%, a narrow victory of 0.01 percentage points, topping Thailand.

A month later, Thailand subsidies were withdrawn, import car consumption tax adjusted back from 2% to 10%. Chinese brand share plummeted from 47.3% to 11.6%.

Of that 47%, a significant portion was not brand loyalty, but policy rent. Price wars spent the rent early.

BYD ATTO 3 dropped from 1.19 million Baht to 900,000, and dropped another maximum of 340,000 in July 2026; Dolphin dropped from 800,000 to over 500,000. BYD used one year of free charging to soothe old car owners, but still some brands were complained about due to price drops.

Even worse was Neta. The Thai government wanted to recover 2 billion Baht in subsidies because Neta failed to fulfill local production commitments: 2024 target 16,000 units, actually only produced about 4,000 units. 18 dealers sued jointly, showrooms shrank from over ten to three, and some insurance companies stopped underwriting. When a brand explodes, the whole "Chinese car" category perishes along with it.

Chinese car companies' planned capacity in Thailand exceeds 550,000 units, while the entire Thai market is only 600,000 units. Factories are built, the market is not that big, price drops to swap volume became a "helpless choice".

Prices can buy market share, not loyalty; subsidies can create a market, but can also be taken back overnight. Using domestic methods to fight overseas means market share is rented.

European residual value accounting: The bill for price wars arrives three years later

In the first half of 2026, Chinese brands sold 643,000 units in Europe, market share rose from 4.5% to 8.9%, year-on-year growth 111.5%. Entry-level models are 20% to 30% cheaper than European competitors.

But Europe has an account rarely calculated domestically: residual value.

Data from German DAT shows that Chinese brand plug-in hybrids retain only 47% of car price after three years of use, it was 61% at the beginning of 2024; dropped 14 percentage points in two years, while German EVs overall only dropped 7 percentage points in the same period. Chinese car depreciation speed is twice the market.

Residual value is the foundation of European auto finance. Europeans use loans, leases, and trades heavily; every point drop in residual value becomes a monthly payment. A 38,000 Euro car, with residual value dropping 14 percentage points in three years, means selling 5,320 Euros less; amortized over 36 months of lease, adding 148 Euros per month. Large leasing companies have started to increase leasing prices for Chinese brands.

More troublesome is expectations. DAT survey shows nearly half of German consumers believe some Chinese brands will exit Europe within five years. Used car buyers squeeze prices, financial institutions increase down payments, brands try to fill the pit with subsidies—a self-reinforcing negative cycle.

Chinese car companies haven't not calculated this account. BYD invested 4 billion Euros in its Hungary factory, initial capacity 150,000 units, depreciation per vehicle amortized 2,600 Euros alone; annual sales need to reach 120,000 to 150,000 units to cover fixed costs. If continuing to drop prices to grab share, residual value will break the financial model first.

Dropping prices domestically hurts old car owners' hearts, dropping prices in Europe hurts the financial model's life. The former can be soothed with one year of free charging, the latter takes three or five years to fix.

Russia and Mexico remind: Markets will close, policies will turn face

The biggest risk of Chinese car global expansion is not cars not selling, but markets suddenly not letting you sell.

Russia imported over 1.16 million Chinese cars in 2024, dropped to 632,000 units in 2025, nearly halved; Chinese brand share dropped from 58.5% to 51.7%. In Q1 2025, Russia closed 274 car showrooms, 213 were Chinese brands, accounting for 78%. Chery has already sold some assets and distribution channels in Russia.

The reason is not complex: scrap tax increased 70% to 85%, tariffs adjusted to 20% to 38%, parallel imports blocked, certification cycles lengthened. When policies turn, the number one market becomes number three.

Mexico was still China's number one export destination for cars in 2025, from January 2026 tariffs of up to 50% on Chinese cars; Chinese exports to Mexico dropped 33.7% in the first half. After the EU imposed tariffs of up to 45.3% on pure EVs, it is now discussing expanding restrictions to hybrids.

These policies target not just one enterprise, but the "export model" itself. Cars shipped from China to earn manufacturing efficiency and exchange rate differences; the host country adds tax, changes certification, or collects subsidies, the advantage is gone.

The only thing to hedge against is leaving manufacturing, R&D, supply chain, and employment locally. But Chinese car companies' overseas fully integrated factory planned capacity is close to 7 million units, overseas production in 2025 was only about 1.2 million units; of over 130 production bases, only 17 are truly fully integrated; overseas localization rate is about 30%, while European, American, and Japanese car companies are over 80%.

7 million units of planning is like moving domestic overcapacity exactly as is to other ports. Localization is not a panacea, but without localization, there is not even the qualification to get sick.

Cars are not motorcycles, but there is no immunity badge

Cars and motorcycles are not the same. Motorcycles have no core technology, sell and leave; Chinese cars have three electrification technologies, smart cockpits, smart driving; in Thailand can sell Seal for 270,000 Yuan, in Brazil can sell BYD to single month retail first.

But "not the same" does not equal "having immunity badge".

Motorcycles died from "no ability to do three things after low price": make quality steady, make after-sales dense, make brand go up. These three things, Chinese cars have not fully achieved. Australia has already seen Chinese EVs under regulatory attention due to closed maintenance data, consumers complaining about long parts wait times; Cui Dongshu's judgment is direct: Chinese cars overseas are still "cost advantage main, technology premium auxiliary, brand premium not yet formed", difficult to break through above 400,000 Yuan.

Price wars happen to destroy these three things. Profits thinned, no money for quality verification, building after-sales, investing in brand; residual value not rising, financial costs cannot go down; full lifecycle cost more expensive, low price finally becomes "expensive".

Hyundai Motor is the opposite reference. Excel entered the US in 1986, sold 168,000 units in the first year; years later quality collapsed, became a talk show joke, sales dropped to 90,000 units in 1998. That year Hyundai launched 10-year/100,000-mile warranty, by 2004 new car quality caught up with Honda. But warranty was just a signal, Hyundai took twenty years to truly make products good.

Japanese cars are another reference. Forced to accept voluntary export restraints to the US in 1981, 1.68 million units annually, lasting until 1994. Japanese car companies did not continue to drop prices, but went to build factories in the US: from 1985 to 1990, US production increased from 820,000 to 1.8 million units, share rose from 18% to over 25%, and launched Lexus, Acura, Infiniti at the same time.

Trade barriers did not stop Japanese cars, localization and brand upgrade did. These two things, Chinese cars are still on the way.

Yin Tongyue's warning is first for Chery itself

Chery is one of the biggest beneficiaries of going global. 2025 revenue 300.29 billion Yuan, overseas revenue 157.42 billion Yuan, accounting for 52.4%—overseas revenue exceeded domestic for the first time; exports 1.344 million units, number one for 23 consecutive years.

But in the first half of 2026, Chery exports grew 71.5%, net profit attributable to the parent company dropped 11.7%. Revenue almost stood still, gross margin rose to 16.1%, net profit actually decreased. Going global scale is rising, making money is harder.

Chery's gross margin was originally not high. Q1 2025 12.4%, lower than BYD 20.1%, Geely 15.9%, Great Wall 17.84%. It relies on scale, channels, and cost-performance to sell cars globally, fears overseas becoming domestic-like price wars.

So Yin Tongyue's warning is not moral persuasion, it is accounting. Chery has half revenue overseas, overseas gross margin higher than domestic; overseas price war, Chery's income statement will hurt first.

Chery is also finding a retreat for itself. Barcelona, Spain, Chery and EV MOTORS joint venture restarted original Nissan factory, producing EBRO S700, one car out of line every 75 minutes, first phase annual capacity 50,000 units, creating over 1,000 local jobs; as of May 2026, EBRO registered 11,131 units in Spain.

Yin Tongyue has spoken of Chery's "cat philosophy": "We are like cats, entered quietly, then quietly became part of his family." This sentence is exactly opposite to "sea braggers". It is not posture, it is method: sell cars first, then build channels, then localize, finally become part of local industry.

Yin Tongyue is not singing doom, it is warning.

He brought out the old accounts the industry is most unwilling to hear, because he knows, if this account is not reviewed, it will be paid sooner or later.

Epilogue

In 2002, when Chinese motorcycles took 80% share in Vietnam, no one thought that was the end. In 2026, when Chinese car exports stood at 12 million units, no one thought that was the end.

The difference is, motorcycles have no second chance, cars do. The timeliness of Yin Tongyue's words is not because it exposed some secret, but because it exposed too early—early enough for the industry to still have time to change.

Chinese cars have technology, have supply chain, have local factories, also have profit space to fix quality, after-sales, brand. But opportunities will not automatically redeem, it depends on one choice: treat overseas as a sewer to digest domestic inventory, or as a second entrepreneurial venture.

Next to verify is only one thing: when domestic retail continues to slide, which car company dares to be the first to stop using overseas markets to digest inventory?

The answer to this question will better explain the substance of Chinese cars going global than 12 million units.

Chery's October sales, looking at the numbers alone, are not actually the most explosive. The group's total vehicle sales reached 295,934 units, a year-over-year increase of 5.3%. In the October ranking context of BYD nearing 500,000 and Geely breaking 310,000, Chery's growth rate is not particularly conspicuous. But if you only focus on this 5.3%, you will miss the truly important things in this performance report.

Chery being number one in exports is no longer news. The true new signal is that the export business itself is upgrading.

Exports reached 200,618 units, up 58.7% year-over-year, breaking the 200,000 units mark for a single month for the third time this year; New Energy reached 140,893 units, up 27.7% year-over-year, standing on the 100,000 units step for seven consecutive months in a single month. The proportion of exports in the group's total sales has approached 70%. This means that for every three cars Chery sold in October, two went overseas. It is becoming a company that uses the profits and scale of the overseas market to support domestic new energy transformation and brand elevation. This path has no other Chinese automaker walking so deeply.

Chery Executive Vice President Zhang Guibing previously revealed that it is expected that by the end of 2026, the proportion of vehicles produced overseas in Chery's exports will exceed 50% for the first time, rise to 60% in 2027, and reach 70% in 2030. The significance of this number lies in the fact that Chery's overseas focus is shifting from "selling cars made in China overseas" to "manufacturing cars overseas, procuring overseas, and making money overseas". Shipping complete vehicles from China for export faces increasingly high tariff thresholds and exchange rate fluctuations; localized production bypasses trade barriers, retains employment and taxes, and exchanges for long-term market access qualifications in local markets.

The financial meaning of this is equally direct. Chery's net profit for the first three quarters was 14.6 billion yuan, while the overall revenue profit margin of the automotive manufacturing industry was only 3.3% during the same period. Chery's earning power is close to twice the industry average level. The gross profit margin structure of overseas business is Chery's card for daring to maintain stability in the domestic price war. When most Chinese brands are still harding involution in the domestic market with profits, Chery has already found a cycle of using high overseas gross margins to hedge against low domestic gross margins. This is not escaping involution, it is changing the battlefield to win the ammunition needed for involution.

Chery New Energy sold 140,900 vehicles in October, breaking 100,000 for seven consecutive months. From January to October, the cumulative total was 999,417 units, up 43.2% year-over-year, exceeding the total new energy volume for the entire previous year in advance. Wholesale volume remains firmly in the top three of the industry, with a global new energy share of 5.5%, ranking in the top five automotive groups.

Behind these numbers, more worthy of attention is the product structure supporting the scale. The Fengyun A9 secured sales leadership in the 100,000 to 150,000 yuan pure electric mid-size car market. The brand-new QQ3 sold over 10,000 units monthly for seven consecutive months and entered Thailand, Indonesia, and South Africa. iCAR V23 global sales exceeded 100,000 units, topping multiple overseas market niche tracks. Chery's new energy volume growth is not a pulse-like growth driven by one or two influencer cars, but building the base stone by stone in mainstream price segments and mainstream categories. This certainty of growth is harder for opponents to knock down with a single new car.

Meanwhile, within the Chery Group in October, each brand showed a rare synchronized resonance. Chery brand sales reached 200,571 units, up 18.2% year-over-year, an absolute cornerstone. This number shows that in the most competitive mainstream fuel and hybrid markets, Chery's base continues to maintain strong upward momentum, with channel efficiency and product reputation continuously releasing dividends.

Jetour reached 58,443 units, maintaining stable output, firmly rooted in the Travel+ niche track. As the representative of new forces, iCAR, relying on the personalized positioning of V23 and other models, not only broke out among the domestic young group but also shone brightly in the overseas market, becoming an important extension for Chery's brand elevation and rejuvenation. As for Exeed and Luxeed, they are also steadily exploring on their respective premiumization paths.

For a huge group with nearly 3 million annual sales, multi-brand synergy originally needs rhythm. The strong growth of the mainstream base provides sufficient trial and error space and resource support for the upward breakthrough of high-end brands. This tiered development rhythm proves exactly that Chery owns a healthy brand ecosystem with extremely strong risk resistance capabilities.

The main theme of Chinese automakers in the past few years has been close-quarters combat with configurations and prices in the domestic market. Many brands fell into a vicious circle: sales were rising, profits were falling. In order to grab shares, they were willing to spend bullets that should have been used for R&D on the price war. The revenue profit margin of the entire industry was suppressed to an extremely low level. Everyone was consuming each other in the same pool; this is a typical zero-sum game.

In this big background, Chery's October performance report provides a completely different sample for breaking through: upgrading globalization from a simple sales action to a deep operational action, using overseas manufacturing and overseas profits to provide a leisurely space for domestic technology investment and brand elevation.

Where exactly does this path lie in difficulty? It is difficult because it is not only selling products, but outputting a system. Chery is able to sell at high premiums and get high profits in the overseas market. It does not rely on low-price dumping, but on the global alignment of technical standards. For example, Chery's engines, gearboxes, and chassis architectures can withstand tests in harsh markets such as Europe, the Middle East, and South America, obtaining overseas five-star safety certifications. Behind this lies more than ten years of hard work by the Chinese automotive industry on the core three major components. When a Chery car on the European street is chosen and evaluated as a normal, competitive car, not a cheap Chinese substitute, then that kind of globalization that the Chinese automotive industry really wants can be said to start landing.

Deeper significance lies in Chery pumping the real money earned overseas back into the domestic market, feeding domestic new energy R&D, intelligent transformation, and multi-brand construction. This forms an extremely healthy business closed loop. Others are cutting prices to survive; it is accumulating strength with profits. Others are staring at the domestic pool to grab shares; it is expanding the pie in the global market. This model upgrade from product overseas expansion to ecosystem overseas expansion sets an example for all Chinese brands still struggling desperately in the domestic red ocean: truly world-class automakers cannot only reign over at their own doorsteps, they must dare to go to others' home grounds and earn back profits with technology and quality.

Auto Review:

October's performance report is actually a slice of the Chinese automotive industry walking towards maturity. In the past, we were used to using price to exchange for the market, using sales to prove presence; but Chery's path tells us that true strength is not crushing opponents in the domestic market, but bringing the ability to build cars, brand reputation, and profit thickness together to the global market for inspection.

On October 30, 2026, Chery Automobile Co., Ltd. (9973.HK, referred to as "Chery Automobile" or "the Company") released a performance report that defied the trend: according to unaudited financial data for the nine months ended September 30, 2026, the Company achieved revenue of 241.234 billion yuan in the first three quarters, a year-on-year increase of 12.29%; gross profit of 39.004 billion yuan, a year-on-year increase of 32.38%, gross profit margin increased to 16.17%; R&D expenditure of 11.046 billion yuan, a year-on-year increase of 40.21%; profit for the period of 14.595 billion yuan, net profit margin 6.05%; profit attributable to owners of the Company 13.963 billion yuan.

During the same period, according to data released by the National Bureau of Statistics of China, revenue in the automobile manufacturing industry increased by 2.6% year-on-year; total profit decreased by 22.8% year-on-year; operating profit margin was 3.3%. Chery Automobile's revenue growth rate and profitability are significantly higher than the industry level; moreover, the gross profit growth rate of 32.38% and revenue growth rate of 12.29% are both higher than the sales volume growth rate of 10.5%, demonstrating high-quality growth resilience.

Systematic deep cultivation in the global market, large-scale realization of new energy products, and continuous increase in R&D investment jointly constitute the three main lines of Chery Automobile's high-quality growth. What runs through them is the comprehensive deepening and landing of the Globalization 3.0 strategy.

Globalization 3.0 Strategy Fully Land: From "Product Going Global" to "System Going Global"

This year, Chery accelerated the implementation of the Globalization 3.0 strategy. From the executive team to the organizational system, adjustments and upgrades were carried out, promoting integrated coordination between domestic and foreign markets and truly localized R&D, manufacturing, procurement, sales, and services. The Company moved from product exporting to ecosystem exporting and system exporting, transforming from a "Chinese company doing global business" to an "enterprise citizen with global operations, decentralized, and integrated into local regions."

In the first three quarters, the Company commissioned its first overseas regional operation center in Barcelona, Spain, and simultaneously launched the Spanish Research Institute, moving decision-making rights for R&D, manufacturing, supply chain, compliance, public affairs, etc., to the European local level. In South Africa, the Company acquired the Roslyn plant from a global major automaker and launched a localization plan, striving to achieve an initial target of 40% localization rate for vehicle production in South Africa before 2028. Chery's globalization is no longer just about selling cars overseas, but about growing the organization overseas, building capabilities locally, and keeping contributions locally.

Picture shows the scene of the commissioning ceremony of Chery South Africa Roslyn Plant

According to data statistics from market research institute Dataforce, Chery Automobile's sales volume in Europe (covering EU, UK, and EFTA markets) ranked first among Chinese brands in September. In the same month, according to statistics from the UK automotive manufacturers and traders association (SMMT), Chery ranked first in new car brand sales for the second consecutive month in the UK, again surpassing Volkswagen, and its JAECOO 7 topped the UK full-model sales list again. Now, for every 10 new cars sold in the UK, 1 comes from Chery.

Product Answer Card of Globalization 3.0: New Energy Hits Delivered Simultaneously at Home and Abroad

According to statistics from the China Passenger Car Association (CPCA), Chery Automobile's new energy monthly wholesale volume has ranked in the top three of the industry for 6 consecutive months. From China to the globe, Chery New Energy is powering up simultaneously on multiple categories and price points.

The sales data for the first three quarters released by Chery Automobile previously showed: the all-new QQ3 has exceeded 10,000 units in sales for six consecutive months, with currently 100,000 units of global orders pending delivery; Fengyun A9 won the sales champion in the 150,000-yuan pure electric mid-size car segment, delivered over 7,000 units in September, and monthly orders exceeded 20,000 units; Fengyun T7 delivered 6,168 units in September, with pending orders exceeding 16,000 units; iCAR V23 maintains leadership in the new energy box-style sub-market, with cumulative global sales exceeding 100,000 units; LUXEED V9 has ranked first in the MPV market over 400,000 yuan for 4 consecutive months since its launch, and welcomed the 30,000th delivery in October; Freeland 8 has completed the first batch of deliveries in September and entered the scale delivery phase.

Picture shows some Chery new energy models

On a global scale, Chery Automobile is accelerating the export of new energy and intelligent products. The high-end brand focusing on new energy and intelligence, OMODA & JAECOO, has entered 79 global markets. JAECOO 7, JAECOO 5, and OMODA 5 entered the UK top 10 best-selling cars list. iCAR V23 ranks first in the sub-market of Thailand, Malaysia, Nepal, South Africa, and other countries. Zhongheng G700 has exceeded 30,000 units in global sales 11 months after launch, ranking first among Chinese luxury SUVs in 8 countries including Saudi Arabia, UAE, Mexico, etc. LEPAS has launched and delivered new energy models in countries such as UK, Italy, Thailand, Indonesia, South Africa, and simultaneously launched pre-warm or pre-sale in Europe, Australia, Middle East, etc. Currently, for every 7 new energy vehicles exported from China, 1 comes from Chery.

Picture shows Chery overseas family users participating in the new car global premiere event

Technology Infrastructure of Globalization 3.0: Frontline Technologies like Swift Charging Appear, Accelerating Transformation into an AI-Driven Technology Ecosystem Company

R&D expenditure is a key cut to observe Chery's growth logic. In recent years, Chery has continuously increased investment in electrification and intelligence. In the first three quarters, the Company's R&D expenditure was 11.046 billion yuan, a year-on-year increase of 40.21%, the growth rate is about 3.3 times the revenue growth rate; the proportion of R&D expenditure to revenue rose from 3.67% year-on-year to 4.58%. Exchanging today's investment for tomorrow's technology leadership is the hardest investment behind Globalization 3.0.

Chery Automobile is comprehensively transforming into an AI-driven global technology ecosystem company. On October 20, Chery released the "Rayong 2035" strategy. Taking the physical AI vertical foundation large model CheryMind as the technology infrastructure, it launched V2G + Swift Charging + Wireless Charging, Rhino S Solid-state Battery, Ziwei Chip, Robotaxi, Lingxiao eVTOL, Native 48V Low-voltage Electrical System, MoJia Robot and other core technologies, assisting travel, energy, food, life and other freedom scenarios. Chery uses AI for gene restructuring, dedicated to creating a "paradise for global adventurers, a paradise for entrepreneurs, a holy land where new technologies constantly emerge."

Chery Swift Charging achieves charging "charge for 5 minutes, range increases by 500 kilometers", compressing waiting time to the time it takes to drink a cup of coffee. The industry's first commercialized AC V2G technology, connects vehicles to the grid, charge during valley hours and sell during peak hours, helping users earn money and generate revenue, and can also realize emergency external power supply, solving overseas power grid outage problems, making every vehicle a mobile, distributed, truly green energy carrier, creating truly new energy vehicles; the first batch of "Vehicle-Grid Interaction Program" V2G sites cover Shanghai, Guangzhou, Hefei, Wuhu, and other places.

Picture shows Chery Automobile Swift Charging Demonstration Station

Picture shows overseas guests watching Chery Flying Fish Intelligent Driving Unit technology display

Picture shows overseas guests interacting with MoJia Robot during 2026 Chery Global User Ecosystem Conference

Globalization 3.0 Value Continues to Rise: High Recognition of Domestic and Foreign Securities Firm Ratings

Public research reports from various institutions show that this year, JPMorgan, Citi, Deutsche Bank, CICC, CITIC Securities, CSC Financial, Huatai Securities, Guotai Haitong, Zhongtai Securities, Dongwu Securities, and other domestic and foreign securities firms covering Chery Automobile, have shown highly consistent consensus in rating direction: Buy or Outperform Industry, and core logic points to the same set of judgments—Globalization system capabilities and improvement of new energy economic benefits.

All institutions have given Chery Automobile an "Overweight" rating, unanimously agreeing: Chery's overseas business has completed the transition from product exports to local operations, forming a first-mover advantage and scale profitability platform; the economic benefits of the new energy business are in a continuous improvement channel.

The consensus on the rating direction of domestic and foreign securities firms provides the market with a comparable external coordinate: a structural growth narrative anchored by globalization system capabilities and improvement of new energy economic benefits has formed a considerable consensus at the investment institution level.

From "Going Out" to "Going In", from selling products to building systems, Chery Automobile's Globalization 3.0 is pushing the Company to a new position: a global technology ecosystem company driven by AI, operating locally globally, and defining growth through technological innovation.

November 1, Chery Group released October sales update: Group sold 295,934 vehicles, up 5.3% YoY. Among them, exports 200,618 vehicles, up 58.7%, third time this year monthly exports broke 200,000, ranking first in Chinese car exports; New Energy sales 140,893 vehicles, up 27.7%, breaking 100,000 monthly for seven consecutive months, setting a new historic high.

January-October, Chery Group cumulative sold 2,502,723 vehicles, up 9.3%; cumulative exports 1,751,766 vehicles, up 64.8%; New Energy sales 999,417 vehicles, up 43.2%, already surpassed last year's full year New Energy sales volume, wholesale volume firmly in top three of the industry. As of end of October, Chery Group global cumulative car users exceeded 21.03 million, of which overseas users exceeded 7.59 million.

Behind the sales growth, Chery Globalization 3.0 Strategy is accelerating transformation into systematic results in technology, product, market, and responsibility value, continuously breaking through in New Energy, Globalization, Tech Innovation and ESG fields.

New Energy Seven Consecutive Months 100,000+: Hit Product Matrix Supports Scale Top Three in Industry

October, Chery Group New Energy sales for seventh consecutive month reached 100,000 units level, setting new monthly high. According to China Passenger Car Association released data earlier, Since April, Chery Group New Energy wholesale volume continuously ranked top three in industry; January-August 2026, Chery Group New Energy sales global market share reached 5.5%, ranking top five in global car companies.

Behind new sales high, is concentrated release of multi-brand, multi-segment product matrix: Luxeed V9 cumulative delivery exceeded 30,000 units, refreshing fastest delivery record in 500,000-yuan class MPV; Fengyun A9 won 100,000-150,000 yuan pure electric mid-size car sales first; All-new Explorer 7 launched 30 minutes orders broke 10,000; All-new QQ3 sold over 10,000 monthly for 7 consecutive months, and entered Thailand, Indonesia, South Africa etc. markets; iCAR V23 global sales exceeded 100,000 units, and topped Thailand, Malaysia, Nepal, South Africa etc. country segment champion.

Figure: Chery Xunlong Instant Charging Demo Station

Beyond product release, Green Energy Ecosystem landed simultaneously, letting car owners 'make money' through energy trading in future. Chery built industry's first Vehicle-Grid Interconnection V2G scaled operation station officially started, promoting V2G from tech verification to scaled operation. Relying on 'Vehicle-Storage-Charging-Grid-Cloud-Carbon' closed loop, vehicles can participate in grid peak shaving and valley filling. According to calculation, users can get over 3,000 yuan revenue annually. According to plan, Chery will build 20,000 V2G stations globally by 2029, first batch landing Shanghai, Hefei, Guangzhou, Wuhu etc. places.

Average 15 Seconds Export 1 'Made by Chery': Chinese Cars First Became Top 10 Sales Models in Europe

This year, Chery Group continuously refreshed export speed, January-October cumulative exports 1.752 million, up 64.8%, average 15 seconds there is one 'Made by Chery' driving to overseas.

High-quality overseas expansion made breakthroughs in multiple global markets, European market is the most direct footnote. First three quarters, Chery already in Europe 24 countries cumulative sold 292,000 vehicles, up 182%, of which New Energy vehicles exceeded 146,000, up 251%. August, September, Chery in UK market respectively with 8,618 vehicles, 32,830 vehicles, retained UK car sales top spot; JAECCOO 7 with 15,470 vehicles European total sales, became first Chinese model entered European models top 10, wrote another 'first' for Chinese brands.

Data Source: European Automotive Authoritative Market Research Institution Dataforce

At 2026 Paris International Motor Show held in October, Chery brought Chery, OMODA & JAECOO dual brands appeared, displayed OMODA 4, OMODA 5, TIGGO 4, TIGGO 7, Chery Q etc. models, further improved European market product matrix. During Auto Show, Chery and industry, academia, and supply chain partners jointly initiated 'Initiative for Building a Sustainable Eco-system for Industry-Academia-Research Collaboration', around sustainable supply chain, low-carbon manufacturing, tech innovation, supply chain resilience and responsible operation etc. fields, promoting establishing more open industry-academia-cooperation mechanism.

Figure: Chery and European Partners Launched 'Initiative for Building a Sustainable Eco-system for Industry-Academia-Research Collaboration'

'Charge 5 Minutes, Range 500km', Chery Yaoguang 2035 Central Appearance 10+ Cutting-edge Technologies

Tech innovation is Chery Globalization 3.0 Strategy core engine. Relying on this engine, Chery is accelerating transformation from a traditional car company to high-tech industry ecosystem cluster facing 2035.

In October Chery Global Innovation Conference, Chery released Yaoguang 2035 Strategy, with '1 Technical Base, 4 Freedoms' as core, will AI car general tech re-used to MoJia humanoid robots, Robotaxi, eVTOL, Energy, Agriculture etc. industries, driving AI towards physical world comprehensive extension.

Figure: Scene of 2026 Chery Global Innovation Conference on October 20

Figure: Launch of All-new Product 'MoBao' under MoJia

'Let technology return to people, create maximum value for human free creation', adhering to this tech vision, Chery once released 10+ cutting-edge technologies: can achieve 'Charge 5 Minutes, Range 500 km' Xunlong Instant Charging, industry first commercial landing AC V2G tech, industry first native pre-installed L4 level Robotaxi, China first fully autonomous hybrid wing passenger eVTOL, facing physical world vertical base large model CheryMind, autonomous controllable Ziwei chip, through planting management harvest transport full process pure electric agricultural machinery agent, and industry most complete robot agent matrix etc. These 'Black Tech' accelerating from lab to mass production, in New Energy, Smart Mobility etc. fields landing and converting first.

Figure: Global Attendees Experienced Chery Exhibition Vehicles

Corporate Citizenship: Where Chery arrives, kindness and responsibility must be brought there

Chery Globalization 3.0, is market globalization, also responsibility globalization. During Chery Global User Ecosystem Conference, Chery jointly International Union for Conservation Nature (IUCN) initiated 'One Nature, One Future' initiative, with 'Ride Green Life' Lake Low-carbon Cycling respond to IUCN Nature 2030 Plan, for achieving 'A Just World that Values and Protects Nature' vision contribution power. Since 2024 with IUCN Global Cooperation 'Love Nature' Project, both sides continuously around nature protection, environment education and public participation establish cooperation mechanism, achieve biodiversity protection, enhancing climate resilience and empowering community livelihoods triple benefits.

Figure: Chery Initiative Attendees Respond to IUCN Nature 2030 Plan Together

Chery also invited UNICEF China Representative Ms. Sang Ailing, Vietnam Representative Ms. Sylvia Dana appeared Global User Ecosystem Conference, sharing Chery Group supported children education project progress. Since 2023, Chery cumulative promised invest 12 million USD, support UNICEF in Global carry out education projects, key coverage China, Vietnam, Mexico, South Africa, Turkey, Indonesia six countries.

From continuously breaking high New Energy, to relentless globalization, to hard tech walking out of lab, Chery's story still continues. Facing future, Chery will take Globalization 3.0 Strategy as main line, take tech innovation drive product and market breakthrough, accelerate become AI driven Global Intelligent Tech Ecosystem Company.

* UNICEF does not endorse any enterprise, brand, product, or service.

As a leading domestic automotive export enterprise, Chery has recently been deeply scrutinized by public opinion regarding quality and safety standards. The trigger was the poor performance of its models in the crash tests of the latest Latin America New Car Assessment Program (Latin NCAP).

Latin NCAP: Tiggo 2 Receives Zero-Star Rating

On October 28, 2026, the Latin America and Caribbean New Car Assessment Program (Latin NCAP) released the first batch of crash test reports adopting the 2026 version of the new testing protocol. Chery Tiggo 2 (corresponding to the Chery Tiggo 3x in the domestic market, named Tiggo 2 Pro, Tiggo 2 Pro Max, and Chery Tiggo 2 in the Mexican market) received a zero-star (0 star) rating.

The vehicle comes standard with four airbags and an Electronic Stability Control System (ESC), but still failed to meet basic safety requirements. The report shows that Tiggo 2 scored 0% for adult occupant protection, 0% for child occupant protection; pedestrian protection scored 49%, and safety assistance system scored 45%.

Latin NCAP pointed out several key safety defects:

Body structure instability: During the frontal collision, the vehicle body and footwell area deformed and became unstable, causing severe crushing injury to the driver's chest;

Fire risk: Fire hazards were detected during the frontal collision test, posing a major threat to occupants inside the vehicle and rescuers;

Lack of safety features: The vehicle does not come standard with side curtain airbags for head protection; rear seat belts are not equipped with pretensioners and load limiters; simultaneously, the vehicle is not equipped with any Advanced Driver Assistance Systems (ADAS).

Latin NCAP Secretary-General Alejandro Fulas stated that the test results have pushed Chery into the spotlight — the safety performance of products launched by the brand for hot-segment markets is worrisome.

Another quality incident occurred in Malaysia: On October 6, a Chery Omoda 5 suffered an accident where the entire rear suspension assembly detached while driving. The Malaysian Land Transport Authority (JPJ) immediately suspended the model certification (VTA) for this model and stopped new vehicle registration and licensing services.

In response, Chery initiated a recall, involving 8,878 Omoda 5 C and H version vehicles. On October 21, Chery Chairman and General Manager Yin Tongyue publicly apologized at the World Intelligent Connected Vehicles Conference (WICV) regarding this quality incident. Yin Tongyue emphasized that Chery is committed to "deeply rooted" in overseas markets, rather than pursuing short-term windfall profits; at the same time, he called on Chinese automakers going overseas to maintain humility and respect local regulations and systems.

Since the Chery Tiggo series was launched in 2005, products have been exported to more than 80 countries and regions. The Tiggo 2 series is the entry-level model with the lowest price threshold in this product line, focusing on practicality and high cost-performance ratio. In the first half of 2026 alone, Chery exported more than 115,028 vehicles to the Central and South American market.

The joint venture company EMT, funded by Chinese automotive giant Chery, plans to launch the micro electric vehicle Emta in Japan in 2027. Prior to this, the brand has released the exterior design of this mass-produced micro vehicle. This vehicle will compete with micro electric vehicles from Nissan and Suzuki, as well as the BYD Seagull.

Chery-invested EMT's upcoming electric micro vehicle Emta (Source: CarNewsChina)

Recently disclosed patent drawings in China revealed the exterior details of this small car, including an off-road style Soft-Roader (light off-road) version.

This EMT electric micro vehicle also adopts the mainstream boxy shape of Japanese K-Car. Emta has made significant modifications based on the concept car released in the first half of this year, presenting the final mass-production appearance.

The front end has undergone significant changes. The protruding bumper on the concept car was replaced with upper and lower grille trim + lower fog lamp cluster. Headlights and grille are arranged below the hood, the black grille narrows in the middle, appearing more slender.

The mass-production version wheels are no longer close to the four corners of the body like the concept car (concept car is more sporty, full of futuristic feel), wheels retract inward, the body is stretched according to Japanese K-Car regulatory size limits, utility is prioritized.

There are also multiple mass-production adjustments on the side: equipped with traditional pull-out door handles, rear door handle arranged beside the B-pillar; rail structure indicates the rear door adopts the side-sliding door common in K-Car.

The rear end is equipped with a full-width taillight bar echoing the front light group style. Between the taillights, the panel above the license plate frame can be optioned with custom LED logos, or only decorative paintwork.

The light off-road version appeared simultaneously, very noteworthy. The Soft-Roader version adds black anti-scratch surrounds around the body, a newly designed front bumper, shape similar to off-road bull bars.

Like other K-Cars focusing on outdoor style, this off-road kit is most likely just exterior decoration; expected to be equipped with small AT tires, slightly raising ground clearance.

Emta power parameters have not yet been announced, it has the chance to be equipped with a dual-motor four-wheel-drive system.

Singapore-headquartered electric mobility technology company EMT (Electric Mobility Technologies), jointly established by Chery, Jiangsu Yueda Group, Autobacs Seven, Gotion High-tech, Anest Iwata multiple parties.

Yueda also has a joint venture with Kia in China; Autobacs is Japan's largest automotive product retail chain; Anest Iwata is a Japanese air compressor, vacuum pump, spray equipment manufacturer.

Chery provides the whole vehicle platform, electric drive system, autonomous driving technology; production is handled by the former Kia Yancheng Factory (Yueda Yancheng Factory); Gotion High-tech, invested by Volkswagen, is responsible for battery supply.

Autobacs is responsible for the Japanese local sales channels, Anest Iwata provides after-sales and quality support. Emta's design team comes from Honda, Mazda. The brand is also simultaneously developing three models: Hatchback, SUV, MPV. If market sales performance is good, it plans to build a factory in Japan for production after 2030.

October 30, Chery Automobile disclosed its Q1-Q3 performance results. Q1-Q3 revenue totaled 241.234 billion yuan, a year-on-year increase of 12.29%; gross profit reached 39.004 billion yuan, up 32.38% YoY, with gross margin rising to 16.17%; R&D expenditure was 11.046 billion yuan, up 40.21% YoY; profit for the period was 145.95 billion yuan, with a net profit margin of 6.05%; profit attributable to Chery shareholders was 139.63 billion yuan. During the first three quarters, Chery's R&D expenditure was 11.046 billion yuan, up 40.21% YoY, with a growth rate approximately 3.3 times that of revenue; the ratio of R&D expenditure to revenue increased from 3.67% year-on-year to 4.58%.

It is worth noting that in the first three quarters of 2026, the domestic passenger car market wholesale declined 6% YoY, with the industry facing a difficult environment of fierce competition in a saturated market; retail sales declined by more than 20%, and major automakers are all shouting "stressful".

Furthermore, data released by CPCA offers a more intuitive sense of the industry's survival pressure—sales profit margin for the domestic automotive industry from January to September was only 3.3%, revenue increased slightly by 2.6%, but costs rose by 3.8%, with industry-wide profit declining 23% YoY. In September alone, sales profit margin was as low as 1.4%, hitting a four-year low.

Against the backdrop of ongoing price wars in the car market and generally pressured industry profit margins, Chery delivered a report of "simultaneous leap in scale and efficiency"—while revenue remained stable, the improvement in profit quality was even more significant.

Profit Quality, More Worth Attention Than Sales Volume

From the data curve perspective, Chery's growth logic is changing. For a considerable period in the past, the expansion of independent brands often came at the cost of "exchanging price for volume", with gross margins constantly diluted; but in this reporting period, based on a 12.29% revenue increase, Chery's gross profit growth rate reached about 2.6 times the revenue growth rate, with the gross margin increasing by over 2.4 percentage points compared to the same period last year.

This means that growth no longer relies solely on scale dilution, but comes from product structure optimization, increased proportion of high-margin overseas markets, and the realization of new energy and intelligentization premiums. For an automotive group in the acceleration phase of globalization, the improvement in profit quality weighs more than simple sales volume figures. This also explains why external focus on Chery is shifting from "how many cars sold per month" to "how much money earned per car"—in the current industry context where companies are trading price for market share, a gross margin that does not fall but rises is itself a testament to systemic capability.

Globalization 3.0: From "Selling Products" to "Building Ecosystems"

Supporting this performance is the accelerated implementation of Chery's "Globalization 3.0" strategy. Distinguishing from early-stage "product overseas" and mid-stage "capacity overseas", the core of Globalization 3.0 is moving from "product overseas" to "ecosystem overseas" and "system overseas". During the reporting period, the European Operations Center, Spain Research Institute, and South Africa Roslyn Factory were successively commissioned; Chery entered the IATF (International Automotive Task Force) as the third Asian board member, participating in the formulation of the highest global automotive quality standards.

In the market, Chery's monthly sales in Europe ranked Top 1 among Chinese brands, and it was consecutively ranked Top 1 in sales of all brands in the UK for two consecutive months. According to Chery's own description, the company is transforming from "a Chinese company doing global business" to "a corporate citizen that is globally operated, decentralized, and integrated into local communities".

Product Report: New Energy Hot Sellers Realized Simultaneously at Home and Abroad

The return on Globalization 3.0 at the product level is manifested as "new energy hot sellers realized simultaneously at home and abroad". Chery New Energy wholesale volume has ranked Top 3 in the industry for 6 consecutive months, accounting for 1/7 of China's new energy export total. By brand: New QQ3 sales exceeded 10,000 for 6 consecutive months; Fengyun A9 secured Top 1 sales of pure electric mid-size cars at the 150,000 level; JAECOO 7, JAECOO 5, and OMODA 5 entered the Top 10 of UK's best-selling car list; Zhijie V9 ranked Top 1 in MPV sales over 400,000 yuan for 4 consecutive months; iCAUR V23 topped the niche markets in Thailand, Malaysia, Nepal, South Africa, etc.; Zongheng G700 ranked Top 1 in Chinese luxury SUV sales in 8 countries including Saudi Arabia, UAE, Mexico, etc.

It is worth noting that these achievements do not rely on a single hot seller, but rather the simultaneous effort of six major sequences—QQ3, Fengyun, JAECOO/OMODA, Zhijie, iCAUR, and Zongheng—across different price bands and different markets, reflecting Chery's synergy effect of multi-brand layered overseas expansion. A clear thread is: from pure electric small cars in the mass market to high-end MPVs and luxury off-road vehicles, the Chery multi-brand series is scaling up volumes simultaneously in overseas markets with differentiated positioning.

Technical Foundation: R&D Intensity Rises to 3.3 Times Income

The technical foundation behind the growth is also thickening. During the reporting period, Chery's R&D expenditure reached 11.046 billion yuan, a 40.21% YoY increase, with the growth rate approximately 3.3 times the revenue growth rate.

In the energy replenishment field, "Xunlong Instant Charge" achieves 5 minutes charging for 500 km range; V2G technology has become the industry's first commercialized AC V2G solution—vehicles connected to the grid can "charge low, sell high" to help users generate revenue, and can provide emergency power supply externally when overseas grid power fails; the first batch has already covered Shanghai, Guangzhou, Hefei, Wuhu, and other areas.

The longer-term blueprint is the "Yaoguang 2035" strategy: using the vertical base large model CheryMind as 1 technical foundation, facing 4 major "scenario freedoms" of mobility, energy, food, and life, deploying 11 core technologies including Robotaxi, solid-state batteries, eVTOL, chips, Lingxi 8D Smart Sensing Cockpit, etc., accelerating the transformation into an AI-driven tech ecosystem company. As a base large model oriented towards the automotive vertical, CheryMind will coordinate smart cockpits, smart driving, and backend R&D, regarded as the key infrastructure for Chery to move from "manufacturing enterprise" to "tech company".

From Selling Cars to Building Ecosystems, Chery's Three Leaps

From early whole vehicle exports to today embedding "comprehensively promoting Globalization 3.0 strategy, building a global tech ecosystem company" into the main strategic title, Chery's globalization narrative has completed three leaps: selling products, building factories, building ecosystems.

When system overseas export becomes the new coordinate for this enterprise, what is truly tested is no longer whether a certain car sells well, but whether this system can continue to operate and innovate in a decentralized global market. R&D intensity reaching 3.3 times revenue growth rate, and energy networks starting to feed back user returns, mean this transformation is not merely on the slogan level. This Q3 quarterly report provides a very clear answer.

October 22, 2026, Wuhu, Anhui, at the ecological theme event of the 2026 Chery Global User Conference, Chery together with the International Union for Conservation of Nature (IUCN) launched the “One Nature, One Future (One Nature, One Future)” initiative, integrating nature conservation and biodiversity protection into products, user lives, and corporate decisions, exploring new models of future green life with eco-friendly technology and global public welfare actions.

Today cars are no longer just transportation tools, but smart mobile devices that can also serve as distributed energy storage nodes, making the social responsibility of car companies richer. This event responded to IUCN's Nature 2030 Nature Protection Plan with the “Ride Green Life” low-carbon cycling event, allowing media, partners, and user representatives from around the world to personally participate in environmental protection practices.

A low-carbon cycling event with a total length of 10.6 kilometers became a highlight of this event. Participants cycled around the park perimeter and could scan codes to record their carbon footprint. Chery stated that environmental protection is not just obscure professional reports, ordinary people can also easily participate. Cycling turns abstract environmental concepts into real life experiences, telling everyone that green travel is not an empty slogan, but a simple choice available in everyone's daily life.

At the cycling event site, Chery called on all guests to respond to the IUCN Nature 2030 Plan together, aiming to jointly build a fair world that respects and protects nature. This action also aligns with the UN 2030 Agenda for Sustainable Development and the Kunming-Montreal Global Biodiversity Framework goals. As early as 2024, Chery had already started the “Cherish Nature” project cooperation with the International Union for Conservation of Nature IUCN. Both parties carried out various types of work around nature conservation, environmental science popularization, and public participation, balancing the value of protecting biodiversity, improving climate adaptability, and improving the lives of local residents.

Aside from nature conservation, Chery is also helping global children's education. During the event, Chery donated a signed jersey to the UNICEF China Office. The jersey signatures come from Chery Global Brand Ambassador and UNICEF Poland Ambassador Robert Lewandowski.

Starting from 2023, Chery committed to investing 12 million US dollars to support UNICEF's education projects globally, focusing on six countries including China, Mexico, South Africa, Turkey, Indonesia, and Vietnam. This year the cooperation between the two sides continued to deepen, Chery relevant representatives also went to Mexico with UN Assistant Secretary-General and UNICEF Deputy Executive Director Katie Van Der Hayden to conduct field visits and examine project implementation. At the same time Chery also attended the UN General Assembly High-level Week “Learning AI Global Cooperation Initiative” conference, hoping to drive education upgrade with technological innovation.

The two sides adhere to the concept of “Benefit Children Education Drives Growth”, striving to allow more children to obtain fair and quality education resources. Projects in various countries have different focuses: Domestic rural schools implement STEM science education; South Africa develops AI student assessment tools, popularizing robotics and programming courses; Vietnam and Indonesia focus on cultivating adolescent digital and green skills; Turkey helps earthquake-affected children return to school, integrating post-disaster education safeguards into the national system; Guerrero State in Mexico advances education improvement efforts, striving to reduce the number of children who cannot understand simple texts by half by 2030. Chery stated that this is not a one-time donation, but a long-term strategy, hoping to integrate technology into education construction and drive community development together.

At this conference, Chery also displayed its own energy technology strength, Xunlong Instant Charge and V2G Smart Recharge Center officially appeared. Megawatt-class ultra-fast charging technology achieves 5 minutes charging, range can run 500 kilometers. Relying on V2G vehicle-grid two-way interaction technology, cars no longer simply consume electric energy, store electricity during off-peak periods, and can send electricity back to the grid during peak electricity usage, becoming mobile energy storage equipment that can serve urban dispatch.

Human-powered bicycles on site and smart electric vehicles with two-way interaction form an interesting contrast. Two ways of travel jointly interpret Chery's green thinking: travel can be diverse, but all must move towards the direction of low-carbon, intelligent, and resource cycling.

What Chery displays is not only charging technology or public welfare activities, but a complete future life conception: transportation interconnection, energy efficient coordination, balancing humanistic care, humans and nature coexisting in harmony. When sustainable development becomes a life choice that ordinary users around the world can see and do, enterprise's green commitments can truly transform into a lasting force to push society forward.

* UNICEF does not endorse any enterprise, brand, product, or service.

The four tensions are not yet closed; the speed of execution determines the next thirty years.

Author: Song Jiating

"30 years old can be the beginning of aging, or the eve of an innovation explosion."

Yin Tongyue, Chairman of Chery Holding Group Co., Ltd., said this at the opening of the 2026 Chery Global Innovation Conference. He also said that today Chery is much like the horse keepers and carriage workshop owners of the past facing the first Mercedes-Benz car—many companies fall before 30, while some deliver works that change the world around the age of 30.

A chairman who sells over 2 million units annually and has been the export leader among Chinese brands for 23 consecutive years, calls himself a "horse keeper." What is frightening is not a specific rival, but that the capabilities relied upon for the past thirty years may no longer be valuable in the next thirty years. This is also the fundamental reason why Chery chose "change".

From the current perspective, the transformation at Chery is four sets of tensions pulling simultaneously from inside to outside. Each layer relies on the one above as a premise, and each layer is not yet closed—where all tensions finally intersect stands ordinary families. This is the ultimate mission of an automotive manufacturer, or rather, a technology company.

Technology: 126 Days vs. 3 Days for a Simulation Engineer

Chery simulation engineers previously used to optimize the aerodynamics of one car with six rounds of solutions, 100 per round. The traditional process took 126 days.

After integrating CheryMind, the same work was completed in 3 days, efficiency improved 42 times, drag coefficient compressed from 0.32 to 0.26, and range directly increased by 40 kilometers. The 123 days saved allowed engineers to think about "more creative things".

This is just the tip of the iceberg. Chery did not take the general large model route, but self-developed the vertical model CheryMind with a much narrower goal: only doing inference and decision-making for vehicle-side and physical scenarios.

For this narrow goal, it simultaneously self-developed three things—the model itself, the automotive-grade chip Ziwei C100, and the World Engine CHERYAWE, forming a vehicle-side closed loop of "Model — Computing Power — Decision".

Behind CheryMind are 700 TB levels of enterprise knowledge and PB levels of engineering data. Ziwei C100 is customized for the deployment of 10 billion parameter models on vehicles and will be mass-produced in 2027.

Hard constraints of Physical AI determine the necessity of the closed loop: latency compressed to millisecond level, data cannot leave the vehicle arbitrarily, and automotive-grade reliability does not allow any link to be outsourced or fail. The cost is heavy assets, slow returns, and limited generality; the return is certainty in industrial scenarios.

Whether the closed loop holds is not looked at in launch events, but in the performance after C100 is installed on vehicles in 2027. This layer is the premise of the latter three layers—without a reusable foundation, boundary expansion is impossible to discuss, organizational adjustments lose direction, and identity manifestos degenerate into slogans.

Boundaries: A Rainforest Starting from a Field

In Northeast farmland, a pure electric intelligent agricultural machine is operating unmanned. Previously one person one machine daily handled 150 mu, now one person multiple machines daily handles 800 mu; in a potato farm test, energy cost reduced by 74%, maintenance reduced by 59%, carbon emissions reduced by 56%. On the same land, corn yield per mu increased from 1600 jin to 2000 jin.

No one would have thought the team doing this comes from an automotive company. Nineteen years ago, it also entered the shipbuilding industry.

Chery's cross-bordering is not starting from zero, but reusing outward from the three capability lines of automobiles. Electrification foundation reused to agri-machinery, energy storage, eVTOL power; intelligent brain reused to smart cockpit, smart driving, robots, agri-machinery OS; manufacturing and supply chain reused to robot mass production and global spare parts ecosystem.

The three lines have different radii: electrification migration cost is lowest, intelligence needs scenario data feedback, manufacturing and supply chain rely on economies of scale. The longer the radius, the more it relies on blood transfusion from the core auto business.

Chery's core business is not easy. In the first three quarters of this year, 1.551 million units were exported, with exports accounting for over 70% of total sales. High overseas margins support R&D confidence, but domestic pressure means the blood transfusion pipeline is not infinitely thick. Yin Tongyue drew a red line: output capabilities externally, but do not take involution.

From passenger cars to agri-machinery, energy storage is reuse, to complete robots and eVTOL complete machines is a further leap. Which are extensions, which are overdrafts, Chery has not given a clear answer—this is exactly where it is not yet closed. Yin Tongyue said Chery hopes to turn from one tree into a rainforest, but undoubtedly, growth needs thick roots and requires a long time.

Organization: 14 Days, Two Rounds of Moves

From September to October, two adjustments in 14 days. Zhang Guibing promoted from Head of International Business to Executive Vice President of the Joint Stock Company. Subsequently, the Chery main brand was included in the global market system under his direct management, simultaneously coordinating global styling, HR, legal, spare parts, and robot business; Jetour managed by Li Xueyong, focusing on the global off-road brand.

The sudden adjustment is full of deep meaning. Exports are Chery's trump card; in the new round of competition, Chery must fully play this card, build high barriers, and not give any rivals any chance to surpass.

True global integrated operations require overseas regional teams to have corresponding decision-making power on product configuration, pricing, channels, and services. Chery centralized all power to Wuhu HQ; efficiency might improve, but localization depth might be limited, "Be somewhere" is just a slogan.

From another angle, the result-orientation, monthly assessment, and flattening of the international system are accelerating a transfer to the domestic side. This logic works in high-margin overseas markets, but under the reality of domestic sales pressure and a large team scale, whether the same incentive intensity can cover all staff is an unknown in cost structure. Staff allocation adopts planting genes first then covering all; middle management has moved, frontline perception lags.

Organizational changes do not decide who sits in which office, but whether anyone can handle the capability and ambition of the first two layers.

Identity: A Welding Point and an Apology

Yin Tongyue said Chery is a "high-tech company wearing an auto company's vest", saying he was happy to hear others say Chery is less and less like an auto company. These words can be said in one big meeting, communication efficiency is high, but identity is not declared.

In the same month, he publicly apologized in Beijing for Malaysia product quality issues—Omoda 5 rear axle detachment, recalling over 8,000 vehicles. This event with the "High Tech Company" manifesto in the same time window points to a simple fact: no matter how advanced the technology foundation, how vast the cross-industry map, if one welding point has an issue, the global narrative must step back.

The identity layer can only close by the accumulation of the first three layers of facts: closed loop delivery not there, reusability sustainability not there, organization holding not there. 20.73 million global users is a scale fact, six overseas families standing on the Brand Night stage is an emotional fact, but neither can replace quality fact. Manifesto runs faster than delivery; this is the biggest risk for a company's 30th transition.

Family: Technology Circles Back, Landing on People

On October 21, Wuhu Grand Theater, Chery Brand Night announced its theme: "Together, For Family". Six real families from Ecuador, Poland, UK, Romania, South Africa, Brazil walked on stage, a four-act family theater, from "Fireworks · Urban Guardian Daily" to "Party · Family Portrait".

Dutch football legend Van der Sar appeared as a super user, interpreting safety with "Guard the last bottom line"—a goalkeeper's duty, and a car guarding family, met in the same scene.

Same day, ALL-NEW TIGGO7 and TIGGO X7 completed their global premiere. Tiggo 7 series global users over 2 million, sold in over 100 countries, 4 consecutive years Champion of Class A Fuel SUV Export among Chinese brands, gathered China, Europe, Australia, ASEAN four regions Five-Star Safety Certifications—the meaning of these numbers is not in the numbers themselves, but that they are evidence of "Global Same Model, Global Same Standard, Global Same Source Verification"—domestic users don't need to leave the country, can possess global car quality verified by worldwide markets.

Technology went around a big circle, landing point is still people. Chery global users have broken 20 million scale, overseas users over 7.39 million, on average one Chery vehicle delivered every 17 seconds to global users. But Yin Tongyue still emphasized: "AI can replace skills, impossible to replace humanity, insight on future, and strategic layout on future. AI can improve efficiency, but cannot replace human responsibility, human judgment, and human warmth."

This layer answers not "Who Chery wants to become", but "What Chery is considered to be in users' minds". Identity is external recognition after accumulation of Tech, Boundary, Org three layers of facts, and family is the simplest and harshest scale of this recognition—before a family hands the car to family members, they first confirm it can protect them. Family users from different countries and regions globally are a public accounting between "Manifesto Speed" and "Delivery Speed".

Renqi Conclusion:

Tech layer decides confidence, boundary layer decides radius, org layer decides execution, identity layer decides whether outside world recognizes. Any layer broken, whole chain loses stability. And all this finally answers is whether the family standing on the stage is willing to hand keys to the next generation.

Apple 30th published iPhone, Toyota 29th launched Corolla, none suddenly became strong on the birthday. Before 30, core competence already grown; at 30 just delivered accumulated works. Chery's situation is: core competence being rewritten, delivery clock already running, hands not yet on scale.

30 years old can be start of aging, or eve of innovation explosion. Chery chose the latter, but choice doesn't constitute answer. The speed of delivery is it.

Wuhu, October 20, 2026 Local Evening, Chery OMODA & JAECOO International User Summit and Eco-Congress Core Gala ——OMODA X NIGHT (OMODA Night) grandly launched at Wuhu Old Shipyard 1900. Taking century-old industrial heritage as the stage, this cross-border fashion feast gathers dealers, overseas car owners, international media, Miss World representatives from 79 global markets. With the core of 'CROSSVOLUTION Crossover Evolution', it welcomes the global premiere of the new crossover model OMODA X, continuously practicing the brand's vision of 'Co-Create A Beautiful Life With Young People' , and showcasing Chery's global brand strength of being born global, born new energy, and born individual to the world.

Breaking away from the traditional new car launch framework, OMODA X NIGHT is a crossover show that integrates automobiles, fashion, music, youth culture, and user co-creation. The venue opened up OMODA Trendy Urban and JAECOO Refined Outdoor dual scene experience zones, implementing brand-significant lifestyle scenarios such as Cyber Mech aesthetics, e-sports trends, refined camping, and pet-friendly cabins, allowing global partners traveling from afar to immensively understand OMODA & JAECOO's brand proposition of 'One Car Two Worlds, One Store Two Lives' .

The main highlight of the evening ——OMODA X made its formal global premiere, showing a distinct attitude of 'MORE OMODA THAN EVER'. The new car continues the OMODA CYBER MECHA Cyber Mech design language, implements the CROSSVOLUTION Crossover Evolution concept, integrates sharp geometric aesthetics, combining the agility of sports cars with the rugged wildness of off-roaders, breaking traditional vehicle category boundaries, representing a new expression of OMODA's Crossover spirit. OMODA X relies on Chery SHS Super Hybrid Technology System, balancing long range, low energy consumption, and strong power, while developed following E-NCAP and A-NCAP dual five-star global safety standards, created for global young pioneer users. It is both a flowing fashion item and a mobility carrier adapted to diverse urban and outdoor scenarios.

At the gala scene, Kantar brought the global Gen Z youth culture trend insight report, interpreting today's global youth aesthetic propositions, interest preferences, and mobility demands; Miss World representatives from multiple countries took the stage, bringing diverse fashion shows, echoing the brand's global youth power layout rooted in fashion venues like London Fashion Week and Madrid Fashion Week; OMODA owners from different countries including the UK, Spain, Thailand, Indonesia, Brazil, etc., took the stage in turn, sharing modification stories and car usage lives, telling co-creation stories belonging to different regions. At the end of the event, OMODA & JAECOO brand theme song world premiere, multi-country owner representatives sang together on the same stage, the love of different languages and different skin colors gathered in one place, interpreting the brand co-creation core.

OMODA & JAECOO brand head shared the brand's globalization report card on site: Since the brand set sail in April 2023, in just three and a half years, global cumulative sales exceeded 1.4 million vehicles, business covers 79 global markets, built a network of 1702 dealerships, entering a new market every 16 days on average, creating the fastest global million sales record. Europe, Southeast Asia, Latin America, Oceania bloom in multiple points, UK, Spain, Thailand, Indonesia and other markets continue to top the sub-category lists, new energy becomes the core engine of growth. The brand takes global growth power, global standard power, global youth power, global co-creation power as four pillars, walking a path different from traditional going overseas mode: relying not on single product output, but rooting in local culture, understanding local youth, extending cars into trend lifestyle symbols.

'The name OMODA itself was selected by global user voting; JAECOO pet-friendly cabin comes from the co-creation result of Polish user real demands.' The brand head said, the underlying logic of the brand has never been selling cars all over the world, but walking into the cultural scene of global youth, and defining products, defining trends, defining mobility life with them. From VALORANT esports events, global music festivals, fashion shows, to Rugby event IP cooperation, multi-country brand ambassador linkage, OMODA & JAECOO continues to dialogue with users in scenarios loved by young people, putting 'Co-Create A Beautiful Life With Young People' into practice.

As the twin brands built by Chery for the global market, OMODA focuses on the global Crossover trend track, highlighting Fashion, Future, Technology; JAECOO anchors on the global refined off-road track, highlighting urban and outdoor symbiosis. The two brands share Chery's global R&D, hybrid, smart, safety systems, adhere to global unified quality standards, won TÜV Rheinland pet-friendly certification, E-NCAP/A-NCAP dual five-star, and authoritative car awards from many countries globally, verifying product strength with strict markets.

This time OMODA X NIGHT landing in Wuhu is not only the formal debut of OMODA X for the global market, but also an important internal and external assembly of Chery's global brand. Between the new and old collision of the century-old shipyard, users and partners from all over the world together with Chery see a new sample of Chinese cars going overseas: no longer just manufacturing output, but a two-way co-creation of aesthetics, culture, and lifestyle.

Facing the future, OMODA & JAECOO will continue to improve global R&D, manufacturing, channel layout, continue to launch new energy crossover and urban off-road products that fit the needs of the global new generation, continue to dig deep into youth culture circles, carve 'Crossover' into products, give 'Co-creation' back to users, and let the national trend automotive power originating from Chery continue to grow in the global market.

[Auto Industry Insider] On the evening of October 11, Chery Auto released the "Explanation Regarding the OMODA 5 Vehicle Issue in Malaysia", announcing a recall for the 8,878 affected OMODA 5 vehicles in the Malaysian market, to inspect relevant parts and replace them free of charge where necessary, and to conduct special risk investigations on vehicle batches from China and related markets.

The "Explanation" states that this vehicle issue does not involve personal injury, Chery has immediately launched an investigation into the cause, and is actively communicating closely with local government regulatory bodies such as the Malaysian Land Transport Authority (JPJ).

On October 14, Chery Auto published "Chery Malaysia OMODA 5 Recall Action Customer Guidance" on its Malaysian official website: the first batch of spare parts has been shipped and will arrive at authorized service centers successively; the relevant vehicle list has been locked, and vehicle owners will be arranged to visit the store for replacement via active invitation.

1. Timeline

2. Both Failures Point to the Welding Process

According to reports by Every Economic Daily, the cause of the two rear axle-related failures points to the component welding process.

An expert from the welding technology section of a joint-venture brand explained the technical logic to the reporter:

"The component of the rear axle long arm is mostly a stamped sheet metal lap structure. Considering this issue, OEMs often adopt spot welding processes, but spot welding processes are prone to insufficient welding strength themselves."

An frontline employee at a joint-venture car factory stated:

"If virtual welding, missed welding, or welding defects occur during the welding process, safety hazards are likely to arise later."

The same report mentioned that currently the welding processes at OEMs are mainly spot welding and laser welding. In comparison, laser welding is fast, has less deformation, high strength, but higher cost — the aforementioned welding technology section expert stated, "A set of laser welding equipment costs about 2 million yuan more than spot welding."

The expert also introduced that to improve welding safety, the industry will increase welding connection processes that ensure strength, for example, the base number of body weld points reaches 7,000 to 13,000; new models will adopt laser cutting and welding processes, improving strength by over 30% compared to traditional spot welding processes.

3. The Weight of OMODA 5 in Malaysia

· Overseas Proportion: Currently, Chery Auto's overseas sales account for more than 70% of its total sales, Malaysia is one of its important global markets

· Local Scale: After returning to Malaysia in 2023, models such as OMODA 5 were launched successively; cumulative sales were about 30,000 units by the end of 2025; as of June 2026 it has 60 dealerships, imported 10 vehicle models

· ⭐ Model Status: Chery Auto's Malaysian official website published an article earlier this year stating:

"The key to Chery's success in Malaysia lies in OMODA 5 (launched in 2023), this model quickly became Chery's best-performing model, and played an important role in Chery establishing itself in the automotive market."

4. ⚠️ An Unconfirmed Situation

According to reports, JPJ has not yet further announced the technical investigation results of this vehicle issue. Media reports suggest that JPJ has temporarily suspended OMODA 5 vehicle certification (VTA), and the model cannot be registered or sold as a new vehicle before the technical investigation is completed.

Some media sought confirmation from Chery Auto regarding this, but as of the time of publication no response has been received. Therefore, the "Suspend VTA" item remains media wording, not yet officially confirmed by Chery or JPJ.

My View: The Key is Not 8,878 Units, but the "Second Time"

Core Judgment: What is truly worth noting about this recall is not the number 8,878, but that it is the second time. In 2024, the same part had the same problem, at that time Chery's explanation was welding equipment calibration deviation, the inspection scope was 600 units. Two years later, same in the welding process, same rear axle, the recall scope has changed to 8,878 units. This change indicates: the first disposal solved "that batch", but did not solve "that process".

First, let's look at the scope of the two disposals together. In April 2024, Chery identified 60 vehicles equipped with affected rear axle components, expanding the preventive inspection to 600 units, covering cars produced on these four days from August 14 to 17, 2023. In October 2026, the recall quantity is 8,878 units.

→ From 600 to 8,878 units, the scope has expanded by about 15 times. ⚠️ It needs to be noted that the scope definition of these two times is not fully comparable — 2024 was "inspection", this time is "recall replacement", statistical definitions differ. But the direction is clear: the vehicles identified this time as requiring processing far exceed the first investigation scope.

→ The difference in judgment behind this is important. If the problem only occurred in batches produced on certain days, then processing the batch is enough; if the problem lies in the capability boundary of the process itself, then cars outside the batch are also exposed to the same risk. The number 8,878 indicates that Chery is handling this based on the latter.

Second, ⭐ And the explanation from third-party experts exactly explains why such problems tend to repeat. Rear axle long arms are mostly stamped sheet metal lap structures, spot welding is commonly used in the industry — and spot welding itself is prone to insufficient welding strength. This is a process characteristic, not an occasional operational error.

→ This brings a structural difficulty: Insufficient strength of spot welding is probabilistic, not inevitable. Same line, same process, the vast majority of cars are fine, a few cars fail under specific conditions. So "inspecting this batch" is logically invalid — you cannot find those cars that "will crack in the future" through inspection, because they all look qualified when leaving the factory.

→ There are only two real solutions: Either change the process (switch to laser welding or laser cutting welding), or add inspection methods (pre-weld addressing, laser cleaning, real-time welding parameter monitoring, post-weld 2D/3D visual scanning). The industry practice mentioned in the report is exactly this direction — full-process visual inspection plus current voltage real-time monitoring. And all of this requires equipment investment, a laser welding set costs about 2 million yuan more than spot welding.

Third, ⭐ But we must speak fairly, Chery's response this time is not slow, and there is one proactive move worth noting. Incident occurred on October 6, explanatory statement released and recall announced on October 11, customer guidance issued on October 14, first batch of spare parts shipped, vehicle list locked and active invitation to store — from incident to execution action, five days.

→ More noteworthy is the phrase "Conduct special risk investigation on vehicle batches from China and related markets". This item is proactive expansion of scope, not passive response — it means Chery did not treat this as a "local Malaysian issue" to handle. For an enterprise where overseas sales account for more than 70%, the cost of this action is not low, but it exchanges for the possibility of "not letting the same problem happen again in other markets".

→ From this perspective, what is truly worth observing in this event is not the scale of the recall, but whether this investigation will truly clarify the "process" layer. If investigated, then 8,878 units are a correction with significant cost but effective; if it is just processing another batch, then the 2024 situation will happen again.

Fourth, ⚠️ And the current uncertainty makes the weight of this matter exceed 8,878 units. According to reports, JPJ has not yet announced the technical investigation results, at the same time media claim JPJ has suspended OMODA 5 vehicle certification (VTA), no new car registration or sales before investigation completion — this item has not yet been officially confirmed by Chery or JPJ.

→ If this item holds, then the impact is not just the replacement cost of 8,878 vehicles. VTA is a market access qualification, suspension means before the investigation ends, this car cannot sell new cars or register in Malaysia. And OMODA 5 is exactly what Chery itself recognizes on the official website as the "key model for establishing itself in Malaysia".

→ ⚠️ Need to say restrainedly: whether vehicle certification is truly suspended, how long suspended, what is the investigation conclusion, currently there is no official conclusion. Drawing any conclusion on Chery's Malaysia business at this stage is premature — but it is clear that this is no longer a simple after-sales recall, but a regulatory event involving market access.

Three Verifiable Checkpoints: ① JPJ's technical investigation conclusion and OMODA 5 vehicle certification (VTA) status — this is the key to judging the nature of the event, also the only official wording that can determine the nature; ② Results of special investigation on vehicle batches from China and related markets — if recall is needed domestically after investigation, it indicates the problem scope exceeds Malaysia; if investigation conclusion is no impact, then need to see the technical basis it provides; ③ Actual replacement completion rate and time consumption of 8,878 units — the value of the recall commitment is ultimately reflected in execution, not on the announcement.

Conclusion

On October 11, Chery Auto released the "Explanation Regarding the OMODA 5 Vehicle Issue in Malaysia", announcing a recall for the 8,878 affected OMODA 5 vehicles in the Malaysian market, inspect relevant parts and replace them free of charge where necessary, while conducting special risk investigation on vehicle batches from China and related markets. The cause was a rear axle failure of a 2023 OMODA 5 in Johor Bahru, Johor on October 6, rear axle and suspension assembly separated from the body along with two rear wheels. On October 14, Chery Malaysia released customer guidance, stating the first batch of spare parts has been shipped, vehicle list locked and active invitation to store. According to media reports, this model was investigated for similar problems in 2024, at that time it was explained as welding equipment calibration deviation, inspection scope 600 units.

One point worth remembering is: the key is not the number 8,878, but that it happened a second time — both point to the welding process. Insufficient strength of spot welding is probabilistic, "inspecting a certain batch" is logically difficult to work: they all look qualified when leaving the factory. Chery's response this time is not slow, and proactively expanded investigation to other markets; but whether it can be concluded, depends on whether the technical investigation clarifies the "process" layer, not just processing another batch.

On October 20, Chery held the 2026 Global Innovation Conference in Wuhu, with the theme being "Change · Transformation". If one only looks at the vertical domain large models, automotive-grade chips, native pre-installed Robotaxi, eVTOL, V2G, humanoid robots "Mobao", and smart agricultural machinery released on-site, it is easy to misunderstand this conference as a technology showcase. However, from the perspective of industry observation, the signal Chery really wants to convey is not "How many new things can I still build", but "In what capacity am I ready to participate in global competition".

In the past few years, the globalization of Chinese automakers mostly started with products going global: selling cars overseas, then gradually establishing channels, after-sales services, and brand awareness. Chery has already accumulated a fairly significant first-mover advantage at this stage, with overseas user scale, export volume, and overseas factory layout all leading the industry. But this time, Chery invited more than 3,000 domestic and overseas guests to Wuhu, including not only media and users, but also overseas suppliers, overseas partners, and representatives from global dealers, indicating that it is attempting to enter the next stage of globalization.

The keyword for this stage is "ecosystem going global".

The "Yaoguang 2035 Plan" launched by Chery attempts to redefine the corporate identity from an automobile manufacturer to an AI-driven global intelligent technology company. It chose to start with vertical domain large models and automotive-grade chips. The logic is not complex: intelligent automobile competition can no longer rely solely on piling up configurations and competing on functions. What truly determines long-term capability is whether the underlying computing power, algorithms, data, and engineering systems can form a closed loop. Whether Chery can truly integrate this foundation depends on the subsequent vehicle integration rhythm and mass production verification, but it at least indicates that Chery does not want to stay only at the application layer innovation.

More worthy of attention is that Chery is extending AI capabilities from automobiles to broader intelligent terminals. The simultaneous appearance of native pre-installed Robotaxi, Lingxiao eVTOL, V2G vehicle-grid interaction, consumer-level humanoid robots, and smart agricultural machinery means Chery attempts to make automobiles no longer just a single travel tool, but become a connection node between intelligent mobility, energy networks, and embodied intelligence. This layout has imagination, but it also places higher requirements on commercialization capabilities. A technology launch event can clarify the vision all at once, but what truly determines success or failure is whether each business can find stable user scenarios, cost models, and profit paths.

The participation of overseas partners is the key variable for Chery to land its vision. Chinese automakers entering markets such as Europe, Southeast Asia, the Middle East, and Africa are no longer simply copying domestic products over there. Regulatory standards, data security, charging networks, after-sales services, and local manufacturing capabilities in different regions will directly affect whether the product can stand long-term. Chery's cooperation with international suppliers such as Bosch and Oumowei on ADAS and safety components in Europe, discussions with Nissan on contract manufacturing, joint operation of factories with Spanish EV MOTORS, and promotion of localization layout in South Africa, Thailand, and other places all indicate that its overseas strategy is shifting from "selling cars" to "building systems".

This shift also has a demonstrative significance for the Chinese automotive industry. In the past, we often said that Chinese brands going global must rely on product power; in the future, enterprises that can truly go far must also possess localization engineering capabilities, supply chain collaboration capabilities, and global compliance capabilities. Chery places overseas media, overseas suppliers, and overseas partners in important positions at the conference, essentially telling the market: its globalization is not a one-way output, but to let global partners jointly participate in product definition, technical adaptation, and ecosystem construction.

Of course, the more grand the transformation, the more it requires a calm perspective. Moving from an automobile manufacturer to a global intelligent technology company means Chery must face competition in multiple tracks such as automobiles, energy, robotics, and low-altitude mobility at the same time. Each track has its own technical threshold, policy environment, and commercial cycle. Chery's advantage lies in its manufacturing system, overseas channels, and relatively complete business layout, but the challenges are also obvious: large models and chips require continuous investment, Robotaxi and eVTOL need commercialization validation, V2G needs grid collaboration, and humanoid robots need to start from real household needs, not just stay in demonstration scenarios.

So, what is most worth remembering from this conference is not just specific products like "Mobao" robots, flying cars, or V2G, but Chery's attempt to complete an identity upgrade: from selling cars to the global market to bringing technology, supply chains, and ecosystems to the global market; from responding to market changes to actively participating in global intelligent technology competition.

The two words "Change" are not new at automaker launch events. But the change Chery gave this time is no longer just iteration at the product level, but a reconstruction of corporate boundaries, technical foundations, and globalization paths. Next, the outside world will continue to question the mass production schedule, cost competitiveness, and overseas landing results. These questions have no shortcuts, but they precisely determine whether a Chinese automaker can truly transform from "going out" to "going in, going up".

Chery OMODA 5 Axle Breaks Twice in Two Years, Malaysia Halts New Car Registration and Recalls 8,878 Vehicles

October 6, Johor Bahru, Johor, Malaysia, a 2023 model OMODA 5 was driving normally. The rear axle trailing arm weld seam tore, the entire rear axle with two rear wheels detached from the car body, the car lay across the road. No one was injured. Three days later, the Malaysian Road Transport Department (JPJ) put the vehicle type certification and new car registration for this car on hold; that same night, Chery admitted the involved batch had issues with insufficient rear axle trailing arm welding strength, recalling 8,878 vehicles. Sounds like an isolated incident? Two years ago in the same country, this car was already recalled once for the same rear axle.

Weld Seam Tear, Four Words Pressing Down on a Moving Car

Photos and short videos of the scene first circulated on Malaysian social media: A black SUV was slanted parked in the middle of the road, two rear wheels with the entire rear axle lying not far away, the rear of the car collapsed directly onto the ground.

The rear axle trailing arm is a key load-bearing component connecting the rear wheels and the car body. The weld seam tore during driving, support and traction were lost simultaneously, and the car broke down on the spot. Fortunately, the speed was not high at the time, and no one was behind.

The vehicle involved was a 2023 model, the incident occurred on October 6, 2026, in Johor Bahru, Johor, Malaysia. It was driving normally throughout, without any collision.

Regulatory Action Three Days Later, This Is Rare in Malaysia

On October 11, the Malaysian Road Transport Department (JPJ) announced it was suspending OMODA 5 vehicle type certification and new car registration until the technical investigation was completed and safety was confirmed. In other words, before the investigation results were out, this car model could neither be sold nor registered locally.

Local peers spoke plainly: JPJ rarely uses this move for a single passenger car safety incident. This move hurts much more than a fine.

Chery simultaneously released the "Statement on Malaysian OMODA 5 Vehicle Issues": This batch of vehicles may have insufficient welding strength at local welding positions of the rear axle trailing arm, with a risk of weld seam tearing in extreme cases; this structural model had been discontinued prior. The reaction was fast enough, this point must be acknowledged.

Two Years Ago, The Cause Was Almost Identical

This is the part that makes people uneasy.

OMODA 5 entered the Malaysian market only in March 2024. A little over a month after launch, on April 28, a car owner posted a video on social media complaining that the rear axle broke while the new car was driving, and the left rear wheel got stuck into the car body. At that time, Chery Malaysia's conclusion pointed to suppliers: during factory upgrades, the automatic welding machine changed new welding tips, equipment calibration deviations occurred, and the welding of rear axles of some vehicles became substandard as a result. The actual problem found was in the 60 vehicles produced on August 15, 2023. The recall scope was expanded to the 600 vehicles produced between August 14 and 17.

Two years passed, the same rear axle, the same type of welding strength issue, the scope expanded from 600 vehicles to 8,878 vehicles.

The most eye-catching column in the table is not the numbers, but "Fell Twice at the Same Gate".

Changing welding tips is a daily operation at the consumable level. The normal process is to immediately perform first article inspection, destructive sampling, and parameter recalibration after replacement, along with stricter batch traceability. Obviously, one step was missed last time. The fact that another incident happened two years later indicates that the rectification then did not completely plug the loophole.

There is another detail easily overlooked: the involved car was not exported as a complete vehicle from China; it was locally assembled by the Inokom factory in Kulim, Kedah, Malaysia. Local assembly does not equal local parts manufacturing. Where the core structural component like the rear axle comes from, and who supplies it, is exactly what this investigation needs to clarify.

Do Domestic OMODA Owners Need to Panic?

OMODA 5 sold domestically is Chery OMODA. Launched in July 2022, official guide price 79,900 to 107,900 yuan, aimed at youth, currently discontinued.

Chery also wrote a sentence in the statement on October 11: Based on the principle of prudence, a special risk investigation for the same batch of OMODA 5 models in domestic and related markets has been launched, belonging to a proactive preventive arrangement, and results will be announced in time. Domestically, it is currently an investigation, not a recall.

To be frank, the structures of the two versions are not completely consistent. The domestic version distinguishes the rear suspension by power——1.5T models use torsion beam non-independent suspension, 1.6T models use multi-link independent suspension; the Malaysian involved batch has a rear axle structure with trailing arms. Batches, suppliers, and production lines are all different, don't scare yourself, don't pretend not to see, wait for the investigation results.

Local Malaysian car owners can only do one thing now: go to the Chery Malaysia official website, enter the vehicle identification number (VIN), check if their car is on the list, and don't just wait for a phone call.

I do not accept the blanket statement that "domestic cars have poor quality when going global". As of the end of 2025, Chery has cumulatively sold 30,073 vehicles in Malaysia, including 12,930 vehicles delivered in 2025 alone, making it one of the fastest-growing brands locally. A problem with one part batch is involved, not the collapse of the entire system.

But there are three things Chery must answer publicly: For this time and the one in 2024, is it the same supplier, the same production line, the same set of welding parameters? After the rectification last time, was batch traceability and destructive sampling actually implemented on a normalized basis? What traceability method is used to screen problematic vehicles? If the answers to these three questions are not given within a day, this recall is just damage control, not a solution.

For a Chinese brand running wildly overseas, the real test has never been whether the recall is fast enough. Finding the essence of the problem and solving it from the root is the correct solution.

Editor's Note: Chery OMODA 5 faces repeated quality hazards and a large-scale recall overseas. With a high market share overseas and advancing globalization, this event impacts the brand and market, testing Chery's true strength in quality control and global layout.

Chery OMODA 5 Axle Breakage Incident

On October 11, Chery Automobile issued a statement saying that a batch of 2023 OMODA 5 vehicles sold in the Malaysian market have insufficient welding strength at partial welding locations of the rear axle longitudinal arms, posing a risk. Chery will cooperate with JPJ's arrangements, has initiated a recall for the affected 8,878 vehicles, will inspect relevant parts, and replace them for free if necessary.

Regarding this, Chery Company stated: In accordance with the principle of prudence, the company has launched a special risk inspection for the same batch of OMODA 5 models in the domestic and relevant markets, and is maintaining active communication with regulatory bodies. This inspection is a preventive proactive arrangement. Chery will, based on the inspection results, publish to the society in a timely manner with a responsible attitude.

This incident occurred at a node where Chery Automobile's overseas sales continued to rise, and the same model had experienced similar failures in Malaysia. In 2024, a case of OMODA 5 rear axle breakage was exposed locally. At that time, Chery's investigation concluded that the rear axle welding equipment calibration was improper, and 600 vehicles were screened. More than two years later, the same model showed relevant hazards in the same market again. This incident also triggered the suspension of certification and registration of the model locally and the audit of the manufacturing quality system, and also focused the market on the production consistency control level of the chassis welding process of the model. Moreover, there are differences between overseas and domestic regulatory systems. Many overseas motor vehicle regulatory agencies have a more rigid disposal method for mass manufacturing defects: in addition to regular recalls, the regulator has the right to suspend or even freeze model certification, directly restricting new car registration and sales from the access end. This means that for Chinese automakers going overseas, besides competing on product competitiveness and export scale, they must also adapt to local regulatory rules. The continuously rising overseas sales volume requires a stable quality control system to support scale expansion.

Exports Increased by 65.6% in the First Three Quarters

It is worth noting that Chery OMODA 5 is an SUV model built by Chery for the global market. It has been sold in more than 40 countries worldwide, with cumulative sales exceeding 250,000 units. According to official Chery data, exports in the first three quarters of 2026 were 1,551,178 vehicles, a year-on-year increase of 65.6%, surpassing the total export volume of last year. After the occurrence of this axle breakage incident, Malaysia suspended the certification and registration of the model, which impacted the sales rhythm of the car locally, and the large-scale recall also increased significant costs.

Bai Wenxi, Vice Chairman of the China Enterprise Capital Alliance, told Caiwen: Chery's response to this recall was not considered slow. In terms of attitude, "active apology + cross-border synchronous inspection" is more decent than many overseas automakers, but the cost of trust has doubled. This brings a test to the OMODA product and Chery's brand image in the Southeast Asian region.

Chery Globalization 3.0 Strategy Implementation

Recently, Chery's global actions have been continuous. On October 7, the announcement issued by Chery Automobile proposed to fully promote the implementation of Chery Automobile Globalization 3.0 strategy, and strengthen integrated domestic and foreign operations. The main brand will be incorporated into the global market system as a whole. This strategic adjustment also fits the current sales structure. According to the sales data released by Chery for the first three quarters of 2026, Chery sold a total of 2,206,789 cars, with exports of 1,551,178 units. Exports account for nearly 70% of total sales, and the overseas market is the core basic market for sales. Moreover, in the first three quarters of 2026, Chery Group's overseas exports reached 1.5512 million units, higher than BYD's 1.3378 million units, SAIC's 1.1660 million units, Geely's 0.7977 million units, ranking first among domestic independent automakers going overseas. As can be seen, Chery's overseas business accounts for a high proportion. With the expansion of overseas scale, higher requirements are also put forward for the synchronous upgrading of product quality, localization adaptation, and supporting service systems.

With the promotion of Chery's Globalization 3.0 strategy, the proportion of overseas business in total sales continues to rise. As its global model, OMODA 5 triggered a large-scale recall and local regulatory restrictions in Malaysia this time. Combined with previous similar fault records in the same market, related inspections, rectifications, and subsequent market changes will continue to receive industry attention.

 

Operator Finance Net Auto Channel Li Guangyan / Article

On the evening of October 11, Chery Automobile Officially released 'Explanation Regarding Malaysia OMODA 5 Vehicle Issues', publicly apologized for the OMODA 5 axle break accident, triggering widespread attention.

It is understood that this event occurred on October 6, where a black 2023 model OMODA 5 in Malaysia tore the rear axle longitudinal arm while driving, the rear axle along with two rear wheels directly detached from the vehicle body, the vehicle stopped in the middle of the road, fortunately no casualties were caused.

Regarding this matter, Chery Automobile stated in the declaration that the 2023 model OMODA 5 vehicle issue occurred in Malaysia did not involve personal injury. After investigation, the vehicles of this batch may have insufficient welding strength at local welding positions of the rear axle longitudinal arm, and there is a risk of weld seam tearing under extreme circumstances. The structural model has been discontinued prior.

Officially stated, Chery Malaysia subsidiary has launched a recall action, recalling 8,878 affected OMODA 5 units, inspecting relevant parts, and replacing them for free as necessary. In addition, Chery also simultaneously launched a special risk investigation for domestic and related market batches of OMODA 5 units, and maintained active communication with regulatory agencies. It emphasized that the investigation was a preventive active arrangement, and the investigation results would be announced to the society in time, and expressed deep apologies for the inconvenience brought to users.

OMODA 5 is a global model created by Chery for overseas markets, mainly targeting the young consumer market. The corresponding domestic model is Chery Omada, and currently the car is in a halted sales status.

Liu Qing, Director of the Auto Department of Operator Finance Net, stated that Chery's response this time was very fast, demonstrating a responsible attitude.

Public data shows that in September 2026, Chery Automobile's sales volume was 276,900 units, a year-on-year increase of 8.4%, monthly export volume was 207,800 units, accounting for nearly 70% of the total sales volume; in the first three quarters, Chery Automobile cumulative sales of new cars were 2,206,800 units, a year-on-year increase of 9.9%, of which cumulative export volume was 1,551,200 units, a year-on-year increase of 65.6%, exceeding the total export volume of the previous year.