Chery Automobile Financial Performance 2025 Net Profit Growth and Global Sales Analysis

Chery Automobile financial performance 2025 reflects a strong year of profitability and global expansion, with the company reporting a 34.6% rise in net income to 19.02 billion yuan. This growth was largely fueled by higher vehicle shipments worldwide, alongside steady revenue expansion. While competition intensified in the domestic passenger vehicle market, the automaker maintained stable profitability through operational efficiency and scale. The financial results highlight a strategic shift toward electrification, even as margin pressures from new energy vehicles continue to influence overall earnings.

Strong Revenue Growth and Global Delivery Expansion

The company achieved total revenue of 300.29 billion yuan in 2025, marking an 11.3% increase compared to the previous year. A key driver behind this performance was record global deliveries, which reached 2,631,381 vehicles, reflecting an 8% year-on-year rise. This consistent growth demonstrates the expanding international footprint of Chery Automobile, supported by strong demand across multiple markets. The company’s ability to scale production and distribution has played a critical role in sustaining revenue momentum despite competitive pressures.

Margin Trends and Impact of NEV Portfolio Expansion

Despite intensifying competition, Chery managed to slightly improve its overall gross margin to 13.8% in 2025, compared to 13.5% in 2024. However, this improvement masks underlying shifts within its product mix. As new energy vehicles gained a larger share of total sales, the gross margin of the core passenger vehicle segment declined to 12.8% from 13.2%. The lower profitability of NEVs compared to traditional internal combustion engine vehicles continues to weigh on segment-level margins, highlighting the transitional cost of electrification.

Profitability Challenges in New Energy Vehicles

The growing contribution of NEVs to total revenue presents both opportunities and challenges. While these vehicles align with global regulatory trends and future mobility demand, their current margins remain significantly below those of conventional vehicles. This gap is driven by higher battery costs, technology investments, and competitive pricing strategies. As a result, China-based manufacturers like Chery are balancing growth in electrification with the need to sustain profitability across their portfolio.

Rising Investments in Capacity and Innovation

To support increasing global demand, the company significantly raised its capital expenditure in 2025, focusing on expanding production capacity and strengthening supply chain capabilities. At the same time, selling and distribution expenses surged by 32.6%, reflecting aggressive marketing initiatives aimed at enhancing brand visibility and market share. Research and development spending also increased by 23.8%, underlining the company’s commitment to advancing future vehicle technologies and launching new models across segments.

Sub-Brand Performance and Market Dynamics

Performance across sub-brands showed mixed results, indicating evolving consumer preferences and competitive positioning. Emerging brands delivered strong growth momentum, while premium offerings faced headwinds.

• Luxeed recorded sales of 90,493 units, achieving a 56% increase year-on-year
• iCar delivered 96,989 vehicles, growing by 47% annually
• Exeed experienced a 15% decline, with total sales reaching 120,369 units

The contrasting performance highlights the growing demand for innovative and affordable mobility solutions, while premium segments remain sensitive to market competition and shifting consumer expectations. This dynamic underscores the importance of portfolio diversification within the company’s long-term strategy.

The financial and operational performance in 2025 demonstrates a balanced approach between expansion and transformation, as the company continues investing in electrification while managing profitability across its global operations.