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Chery Group’s Remarkable Success in 2023: Accelerating in New Energy and Intelligent Vehicle Sectors

Jan 25, 2024

2023 is an extraordinary year for the automotive industry. Chinese car companies, including Chery Group, are accelerating in the new energy and intelligent connected vehicle sectors. Chery Group’s outstanding performance has impressed the industry.

Chery Group's Remarkable Success in 2023: Accelerating in New Energy and Intelligent Vehicle Sectors

In 2023, Chery Group’s annual revenue exceeded 300 billion yuan for the first time, achieving a one-year increase of 100 billion. The export volume of new cars almost reached one million, doubling year-on-year, and the domestic retail sales volume entered the top ten rankings. The “science and engineering boys” who have always been hardworking created multiple historical highs in 2023. On January 22, the “Leap to Dragon Gate” 2024 Chery Family Banquet Beijing Station event was held. Chery Group, along with the Chery, Exeed, Jetour, and iCAR brands, gathered with the Chery family to join hands and talk about the new journey of Chery’s future. The sales volume increased by 52% in 2023, and the export volume doubled. 2023 was known as the most challenging year in the automotive industry. Due to the uncertainty of the global economy, the domestic car market slowed down, with an overall growth rate of 6.4%, and even a decline of 5.9% in fuel. At the same time, market competition intensified, with a price index decline of 11%, indicating that the market environment is becoming more challenging. Faced with the increasingly uncertain market, Chery became more determined and rose against the trend.

Chery Group's Remarkable Success in 2023: Accelerating in New Energy and Intelligent Vehicle Sectors

According to official data released by Chery Automobile, the total sales of new cars in 2023 reached 1.8813 million, a year-on-year increase of 52.6%, outperforming the overall trend. It is worth mentioning that in 2023, Chery Group achieved four historical highs in both revenue and sales. First, the group’s annual revenue was 315.1 billion yuan, a year-on-year increase of 50.4%, achieving a “big leap” of 100 billion yuan in one year; second, the annual car sales reached 1,881,316 units, a year-on-year increase of 52.6%, surpassing the industry growth rate; third, the group’s annual export of cars reached 937,148 units, a year-on-year increase of 101.1%, ranking first in the export of Chinese brand passenger cars for 21 consecutive years; fourth, in J.D. Power’s “2023 China New Car Quality Report,” Chery ranked first among domestic brands. It is reported that Chery Group currently has four major brands. In terms of sales structure in 2023, Chery brand’s annual sales reached 1.341 million units, a year-on-year increase of 47.6%; Xingtu brand’s annual sales reached 125,500 units, a year-on-year increase of 134.9%; Jietu brand’s annual sales reached 315,200 units, a year-on-year increase of 75%. In addition, Chery’s new iCAR brand, the first product iCAR 03, started global reservations on December 18, 2023, and has received over 13,000 orders as of January 15. As of now, Chery has over 13 million global users, including 3.35 million overseas users, and its products are exported to more than 80 countries and regions. Currently, Chery’s Fengyun A8, Tiggo 9, Xingtu Xingjieyuan ES, Jietu Shanhai L9, and iCAR 03 are all built according to global quality systems and product standards, and will continue to enter the European Union, Eastern Europe, Australia and New Zealand, North America, Central and South America, the Middle East, and Central Asia.

Chery Group's Remarkable Success in 2023: Accelerating in New Energy and Intelligent Vehicle Sectors

Chery Automobile Co., Ltd. Deputy General Manager Li Xueyong summarized 2023, stating that Chery has built strong growth momentum and is entering the fast lane of rapid development: the group’s sales have increased for twelve consecutive months, market share has reached a new high in the past ten years, and the company’s ranking has also greatly improved, successfully moving from fifth place to second place. Li Xueyong also emphasized that in addition to increased sales, Chery’s brand momentum has also greatly improved. In the past year, Chery has launched the Chery Fengyun Series, the global launch of the Star Way Star Era ES, the launch of the Jetour Mountain and Sea Series, the listing of Jetour Traveler, and the official debut of the new brand iCAR. Chery has consistently insisted on making good cars with dedication and speaking with practical actions. In terms of products, Chery launched a total of 9 heavyweight models across its four major brands in 2023, covering various segmented markets. Eight of the main models with monthly sales exceeding 10,000 units, bringing more high-quality models to consumers. In 2023, Chery continued to make breakthroughs in technology. With the advancement of the Yao Guang 2025 strategy, various new technologies continued to be implemented in the five core technology areas of the Mars architecture, Kunpeng power, Xiongshi cockpit, Dazhuo intelligent driving, and Galaxy ecology, based on the Mars architecture – super hybrid platform and E0X high-performance electric platform, to continuously empower new products for the four major brands. 2023 is a year of transformation for the automotive industry and a major test for Chinese car companies. In the face of fierce competition in the industry, Chery Group has comprehensively laid out the international and domestic markets, the four major tracks of fuel, hybrid, pure electric, and hydrogen energy, and adheres to the “upward brand” strategy. Under the accumulation of fruitful results, Chery’s upward steps have never stopped. In response, Zhang Guozhong, Executive Vice President of Chery Automobile Co., Ltd., stated that Chery must adhere to quality first, value-based, long-termism, and internationalization. Chery not only needs to focus on “technology” and “quality,” but also on “brand” and “ecology.” In the new year, Chery aims to bring more surprises through continuous technological innovation and to repay the trust of global users with world-class quality. In 2024, Chery aims to achieve a “sales growth rate that exceeds the industry by 10-20 percentage points” and continue to maintain high-quality development to realize the corporate vision of “building a world-class green intelligent travel technology company.” New energy and fuel run parallel, creating suitable and good cars for users. Chery Automobile is growing to become a leader in the global automotive industry with research and development innovation as its core driving force. Its aim is to create global standard Chinese good cars for users worldwide. In the new year, Chery Group’s four major brands are ready to go.

Chery Group's Remarkable Success in 2023: Accelerating in New Energy and Intelligent Vehicle Sectors

As the preferred brand for value-for-money household, Chery has always been committed to bringing the most user-value, reliable, and warm products and services to millions of families. In 2023, Chery has established three major brand labels: “Technological Chery, International Chery, and User Chery,” achieving brand advancement through technology, global R&D, and user co-creation. Currently, Chery has formed four major product series: Tiggo series, Arrizo series, Exeed series, and Jetour series, creating a dual-line product matrix of fuel + new energy. In 2024, Chery will launch 8 upgraded fuel vehicle models and 5 new hybrid vehicle models, covering various segmented markets. With new products continuously being launched, Chery will continuously build a more complete and diverse product matrix system for users.

Chery Group's Remarkable Success in 2023: Accelerating in New Energy and Intelligent Vehicle Sectors

Xingtu brand has been striving to become the top choice for high-end consumers in China since its inception, bringing users a new intelligent, comfortable, and luxurious user experience. After 5 years of establishment, the brand entered the fast lane of development in 2023, with a total sales of 125,521 units, a year-on-year increase of 134.9%, and annual sales exceeding 100,000 units for the first time, achieving a comprehensive upgrade to the high-end market. In the next two years, Xingtu will continue to adhere to long-termism, fully realizing electrification and high-end positioning, and building Xingtu into a “global high-end new energy brand.” In 2024, Xingtu will have a big year for its products, fully transitioning to new energy, relying on two world-class platforms – the M3X super hybrid platform and the E0X super comfortable high-performance electric platform, planning to launch 3 fuel iterations, 3 C-DM hybrids, 2 pure electric, and 2 extended-range products, with an annual sales target of 300,000 units. According to Chery’s plan, Xingjiyuan ET will be officially launched in the first quarter of 2024. In addition, Xingjiyuan ET will also launch an extended-range version, with a pure electric range of 200km and a comprehensive range of over 1500km. It is understood that in the Xingtu Xingjiyuan series, in addition to the already launched Xingjiyuan ES, ET will be launched in the first quarter, and there will also be a new MPV concept car planned to debut at the Beijing Auto Show, completing the full range product matrix for Xingtu. As an important pillar of Chery Group’s sales, Jetour brand is positioned as travel + off-road, dedicated to becoming the first choice brand for outdoor off-road enthusiasts. In 2023, Jetour brand not only exceeded its annual sales target, but also achieved a million sales in 65 months, becoming the fastest-growing Chinese new SUV brand to reach a million sales, and achieving the first place in growth rate among Chinese new SUV brands and the first place in market share growth rate for independent fuel SUVs.

Chery Group's Remarkable Success in 2023: Accelerating in New Energy and Intelligent Vehicle Sectors

In the new year, Jetour will strive to fight for millions above millions, achieving the leap from “Travel+” to “the world’s first hybrid off-road brand”. In the future, Jetour will continue to promote the product strategy of dual-drive of fuel + hybrid, based on the Jetour Mountain and Sea series, further enhancing mainstream market sales and influence. In 2024, Jetour will launch a total of 15 new models, including 7 fuel models and 8 hybrid models. At the same time, the Mountain and Sea series will also launch new products such as L6, L7, T1, and T2, continuing to move towards the goal of the world’s first hybrid off-road brand. Jetour is launching a new challenge to the annual sales volume of 500,000 units in 2024. Finally, Chery’s new brand iCAR, featuring “trend” and “personality”, aims to become the preferred brand for young people. As the group’s first new energy electric brand, iCAR has entered the new energy market strongly. The pre-sale orders for iCAR 03 have exceeded 13,000, becoming a new choice for young users to buy cars.

Chery Group's Remarkable Success in 2023: Accelerating in New Energy and Intelligent Vehicle Sectors

In the new year, iCAR will focus on creating cars for young people, creating desirable, cool, and high-value cars. The main goal is to create popular products, with a rhythm of introducing 2 new products each year, and to expand into new markets with a focus on personalized pure electric/extended range SUVs and innovative new categories in the 100,000-300,000 price range. By 2024, Chery’s iCAR will establish a “cool playmate first choice brand” in the market and in the minds of users, targeting urban, young, energetic people who love to play and have fun. The goal is to continue building a product matrix of modification and ecology. Moving forward, Chery’s technology is worth watching At Chery’s 2023 Technology Day, Chery Automobile Co., Ltd. Party Secretary and Chairman Yin Tongyue admitted: Chery is an early bird in the field of new energy, but now it aims to “overtake the latecomers.” He said, “Chery will not be as polite as this year, and will definitely enter the global leading position. Chery’s new energy will never rely on losses to increase sales.” Such confidence must be backed by a large amount of technological and product reserves. In fact, for Chery, technology has always been the lifeblood, and Chery started with technology. The labels “Chery of Technology” and “Engineer” have already become deeply rooted in people’s minds. It can be said that Chery’s continuous advancement in the fields of fuel and new energy is closely related to its strong technical strength. Previously, Dr. Gao Xinhua, Chief Technology Officer and Dean of Chery Automobile Engineering Technology Research Institute, said: Chery has always been clear from the beginning that technological innovation is the only way out for Chinese car brands. After a year of exploration and development of the “Yao Guang 2025” strategy, new energy and intelligence are becoming Chery’s new technological labels.

Chery Group's Remarkable Success in 2023: Accelerating in New Energy and Intelligent Vehicle Sectors

Chery is accelerating its layout in the new energy and intelligent track under the guidance of the Yao Guang 2025 strategy. Based on the Mars architecture, Kunpeng power, Xiongshi smart cabin, Dazhuo smart driving, and Galaxy ecology, Chery has achieved a comprehensive upgrade of 19+3 core technologies including platform architecture, chips, efficient hybrid engines, hydrogen energy, electric drive, batteries, smart interaction, unmanned driving, and smart cloud platform. It fully constructs a technological value innovation chain for the needs of new era users. The Kunpeng super hybrid C-DM has attracted widespread attention from the industry and consumer market. The initial intention of this technology’s development is to meet the needs of global users, with core advantages such as high performance, continuous energy saving, intelligent control, and high battery safety. Chery has also won the “China Heart” 2023 Top Ten Engine and Hybrid System Award for the tenth time.

Chery Group's Remarkable Success in 2023: Accelerating in New Energy and Intelligent Vehicle Sectors

The Kunpeng super energy hybrid C-DM is composed of Chery’s fifth-generation ACTECO 1.5TGDI efficient hybrid engine, three-speed super electric hybrid DHT, stepless super electric hybrid DHT, and hybrid-specific battery and battery management system, with core advantages of high performance, sustained energy saving, intelligent control, and high battery safety. Chery’s E0X high-performance electric exclusive platform covers a wheelbase of 2850-3100mm, A-C class, pure electric + efficient extended range SUV, SD, and MPV models, and incorporates Chery’s latest body, chassis, powertrain, and intelligent technology to bring users a higher-level, more comfortable, and smarter experience. To achieve technological breakthroughs, Chery is increasing its investment in research and development. In the next 5 years, Chery’s research and development investment will reach over 100 billion, with over 25,000 research and development personnel, including over 50% software talent, over 300 YaoGuang laboratories, and support for cross-disciplinary scientific and cross-border technology research. It is understood that Chery’s YaoGuang laboratory has already built and is building over 140, with over 160 in the planning stage, forming an advanced global research and development system of “strong brand + large middle platform + refined back-end”. In addition, Chery will also simultaneously establish 8 major research and development centers including Wuhu, Shanghai, North America, South America, Europe, and Central Asia, with global integrated management, fully supporting the realization of the YaoGuang 2025 plan. It can be said that relying on Chery’s technological foundation, the “YaoGuang 2025” strategy’s “safety, energy consumption, space, intelligent cabin, and intelligent driving” 5 world-class technological advantages are leading Chery’s entire product lineup to continuously advance, redefining the “new car” definition. Conclusion In the past year, Chery, with its gathered momentum, has achieved a transition from leading in fuel to leading in new energy. In the new year, Chery has set a sales growth rate target of surpassing the industry by another 10-20 percentage points, continuing to drive high-quality development of the enterprise, and making Chery, the technological one, loved globally.

Chery Group's Remarkable Success in 2023: Accelerating in New Energy and Intelligent Vehicle Sectors

Now, Chery’s passenger car business has formed a development strategy that combines hybrid, extended range, pure electric, and hydrogen technologies, and has formed a “four vertical and three horizontal” R&D core layout with batteries, motors, and electronic controls. In addition, the four major brands are ready to start, accelerating Chery’s pace in the new energy era. Facing a new starting point in 2024, Chery Group will face more new challenges and tasks, and embrace more new opportunities and breakthroughs. As Chery Automobile Co., Ltd.’s Executive Vice President Zhang Guozhong said, moving the brand upward is Chery’s strategic goal and way of survival. In the past, it relied on cost-performance and quality-price ratio, but now it competes in brand value. Chery will firmly ensure that users enjoy higher experiential value and a better travel life.