Chery Auto Q3 2026 Results Show Revenue and R&D Growth

Chery Auto reported revenue of CNY 241.23 billion in the first three quarters of 2026, representing a 12.3% year-over-year (y/y) increase, according to its financial results released on October 30. Gross profit increased 32.4% y/y to CNY 39.00 billion, while the company's gross margin reached 16.2%. However, net profit attributable to shareholders of the parent declined 2.8% y/y to CNY 13.96 billion, reflecting a different performance trend compared with the company's revenue and gross profit growth.

Research and development investment remained a major area of expenditure during the reporting period. Chery Auto's R&D expenses reached CNY 11.05 billion in the first three quarters of 2026, increasing 40.2% y/y. This growth rate was approximately 3.3 times the company's revenue growth rate of 12.3%. R&D expenses accounted for 4.6% of total revenue, compared with 3.7% during the corresponding period of the previous year. The increased investment reflects the company's continued focus on developing electrification and intelligent technologies.

Chery Auto sold a total of 2,076,891 vehicles during the first three quarters of 2026, marking a 10.5% y/y increase. Performance varied across its individual brands. The Chery brand recorded sales of 1,488,136 units, up 23.2% y/y, while iCAR sold 75,547 units, representing growth of 13.4%. In contrast, Exeed sales declined 40.9% y/y to 51,966 units, Jetour sales fell 9.1% to 417,619 units, and Luxeed sales decreased 24.5% to 43,623 units.

Chery Auto also continued expanding its international presence through several brands and models. OMODA and JAECOO have entered 79 markets worldwide, with the JAECOO 7, JAECOO 5, and OMODA 5 ranking among the UK's top 10 best-selling models. The iCAUR V23 secured the leading position in its segment in markets including Thailand, Malaysia, Nepal, and South Africa. Meanwhile, global sales of the Zongheng G700 exceeded 30,000 units within 11 months of its launch. The model also ranked first in sales among Chinese luxury SUVs in eight countries, including Saudi Arabia, the UAE, and Mexico.

Another development in the company's international expansion involved LEPAS, which launched and began deliveries of its new energy vehicle (NEV) models in several overseas markets. These included the UK, Italy, Thailand, Indonesia, and South Africa. The brand also initiated pre-launch promotional activities or presales across markets in Europe, Australia, and the Middle East. These activities indicate the company's continued efforts to introduce its different brands and NEV offerings across multiple international markets.

Chery Auto further strengthened its European operations by opening its first overseas regional operations center in Spain's Barcelona during the first three quarters of 2026. The company also launched its Spanish R&D institute, supporting the localization of functions including research and development, manufacturing, supply chain management, regulatory compliance, and public affairs in Europe. In another regional development, Chery Auto acquired the Rosslyn plant in South Africa and initiated a localized production plan, with the objective of achieving 40% local content in vehicle production by 2028.

Industry Impact & Outlook

Chery Auto's first-three-quarter performance highlights the simultaneous expansion of its revenue base, R&D investment, vehicle sales, and international operations. The 40.2% increase in R&D expenses and higher allocation of revenue to research demonstrate the growing financial commitment to electrification and intelligent technologies. Meanwhile, differences in individual brand sales indicate varying performance across its portfolio. Its overseas regional center, localized R&D capabilities, and South African production initiative also demonstrate an emphasis on establishing local operational functions. The targeted 40% local content level by 2028 provides a measurable objective for its South African manufacturing localization plan.

Frequently Asked Questions

1. What revenue did Chery Auto report in the first three quarters of 2026?
Chery Auto reported revenue of CNY 241.23 billion in the first three quarters of 2026, representing a 12.3% year-over-year increase. Gross profit reached CNY 39.00 billion, up 32.4%, while gross margin increased to 16.2%. However, net profit attributable to shareholders of the parent declined 2.8% to CNY 13.96 billion. The results therefore showed growth in revenue and gross profit alongside a decrease in attributable net profit during the reporting period.

2. How much did Chery Auto invest in research and development in 2026?
Chery Auto's R&D expenses reached CNY 11.05 billion in the first three quarters of 2026, increasing 40.2% year-over-year. The growth rate was approximately 3.3 times its revenue growth rate. R&D spending represented 4.6% of total revenue, compared with 3.7% in the corresponding period of the previous year. The company's research activities continued to focus on electrification and intelligent technologies, making R&D a significant component of its investment during the reporting period.

3. How many vehicles did Chery Auto sell in the first three quarters of 2026?
Chery Auto sold 2,076,891 vehicles in the first three quarters of 2026, representing a 10.5% year-over-year increase. The Chery brand was the largest contributor, recording 1,488,136 units, followed by Jetour with 417,619 units. Other brands included iCAR with 75,547 units, Exeed with 51,966 units, and Luxeed with 43,623 units. Their individual performances varied, with the Chery and iCAR brands recording growth while the other three brands reported sales declines.

4. How is Chery Auto expanding its international operations?
Chery Auto is expanding internationally through overseas brand launches, localized operations, research facilities, and manufacturing initiatives. OMODA and JAECOO have entered 79 global markets, while LEPAS has begun NEV deliveries in several countries. The company also opened its first overseas regional operations center in Barcelona, Spain, and launched a Spanish R&D institute. Additionally, it acquired the Rosslyn plant in South Africa and initiated a localized production plan with a 40% local content target by 2028.