China’s Export Shockwave: Chery Hits 1.2 Million Vehicles, Deploying a Dual-Threat Strategy in Europe

As a data-driven analyst based in the heart of China’s auto industry, my mandate is simple: cut through the noise and deliver the hard facts that matter to Western stakeholders. The latest figures from Chery Group are not just a strong performance—they are a seismic event signaling an accelerating threat to legacy European and US automakers. The ‘China threat’ is no longer theoretical; it has quantifiable scale, and it is rapidly changing tactics.

For the first eleven months of the year, Chery Group has shattered its own records, moving an unprecedented volume of vehicles that validates its status as China’s leading vehicle exporter. The critical insight? Exports are now nearly 50% of the company’s total sales volume, signaling an unstoppable drive to global dominance.

The Export Tsunami: Data Behind the 1.2 Million Mark

The sheer scale of Chery’s outbound ambition is what should concern global competitors. The group’s strategy has moved far beyond simple volume; it’s a systematic, multi-brand global deployment. The key performance indicators for the January-November period tell the story:

• Total Sales Volume: 2,561,465 units, representing an 11.1% year-on-year (YoY) increase.
• Total Exports: Nearly 1,199,590 vehicles, a substantial 14.7% YoY surge. This marks seven consecutive months of exporting over 100,000 units.
• New Energy Vehicle (NEV) Sales: 814,685 units sold, climbing 69.4% YoY. This is the first time the group has broken the 800,000-unit mark for NEV deliveries within a single year.

To put the export figure into context: Chery shipped nearly 1.2 million vehicles. This is not the output of a niche player; this is the volume of a major global OEM and secures Chery’s position as China’s top automotive exporter.

The Strategic Pivot: Why Chery is NOT Leading with BEVs in Europe

The greatest strategic twist in Chery’s global roadmap is its pragmatic, tariff-aware approach to the European market. While much of the Western narrative focuses on the existential threat of Chinese Battery Electric Vehicles (BEVs), Chery is deploying a dual-track strategy:

Circumventing the EU Tariff Wall

Unlike peers who have focused solely on pure-EV exports, Chery is using its multiple brands—OMODA, JAECOO, and CHERY—to attack the market on two fronts. The company is initially concentrating on competitive gasoline models (ICE) in new markets like Spain, Italy, and the UK, with expansion planned for France and Germany.

• The Tariffs Play: This focus on ICE and Plug-in Hybrid (PHEV) models is a strategic maneuver to sidestep the high 20.7% additional EU tariffs currently levied against Chinese BEVs.
• Localized Production: Chery has become the first Chinese automotive group to secure a localized manufacturing footprint in Europe, having acquired a plant in Spain. This move is essential to mitigate future trade barriers and accelerate its ‘Brand Outbound’ strategy.
• Competitive Set: The goal for the OMODA and JAECOO brands is not to compete with the German luxury set immediately, but to establish a competitive benchmark against high-volume, entrenched players like Kia, Hyundai, and Nissan.

NEV Acceleration: The Future Electrification Threat

While Chery is being strategic with its ICE focus in Europe, its domestic and wider global NEV performance proves its electric vehicle technology is scaling rapidly. The surge of nearly 70% in NEV sales (now over 800,000 units) demonstrates a powerful pipeline of electrified models ready for a full global launch when market conditions and trade policy align. The introduction of models under the iCAR and LUXEED brands, along with advanced PHEVs like the Jetour Traveler C-DM, are creating a diversified product ecosystem designed for resilience against fluctuating market demands. The company has signaled its ambition to significantly outpace the broader industry’s growth in the coming year, aiming for 10 to 20 percentage points above the sector average.

Analyst Conclusion: The ‘Brand Outbound’ is Here

The conversation must shift from if Chinese brands will penetrate Western markets to how quickly and how comprehensively. Chery’s 1.2 million exported units is proof of concept for global scale, but its two-pronged strategy—using ICE vehicles as a beachhead to secure market share and localized production as a tariff hedge—is the playbook that legacy European manufacturers need to study closely. The threat is dynamic, multi-faceted, and operating with a speed that demands immediate, non-incremental counter-strategies.

Recommended Reading: Strategy for a New Automotive World

For industry leaders and investors looking to understand the geopolitical and technological shifts reshaping the sector, I recommend:

• The End of Automotive: Car Wars, Consumer Trends, and the New Business Model by Prof. Dr. Ferdinand Dudenhöffer.