In recent weeks, Chery Automobile has been making headlines as it gears up for a significant entry into the automotive market by 2025. As one of China’s major automakers, the company has plans for an Initial Public Offering (IPO), which its executives have confirmed will take place sometime this year, although specific details remain forthcomingThe uncertainty surrounding its listing has left many industry observers questioning its implications, especially regarding potential moves to Hong Kong and how recent equity financing efforts might tie into these plans.

Despite the lack of concrete updates on the IPO, Chery is seemingly already in motion, with its ambitious targets set for 2025. During the global pre-sale launch of the Chery Fenyu T8, Zhang Guozhong, the Executive Vice President of Chery Automobile, outlined a bold vision: to achieve sales growth that exceeds the industry average by a margin of 10% to 20%. The event showcased six new models, all centered around the theme of redefining the national car for a new era, emphasizing a commitment to innovation and market leadership.

The automotive landscape in 2025 is expected to be fiercely competitive, raising the stakes for Chery

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As it stands, the company is preparing rigorously to navigate this competitive terrain successfullyHistorical context is essential to understand why Chery's IPO is coming so late in the game compared to other established players in the automotive sectorSince its inception, Chery has faced numerous hurdles and challenges that have delayed its initial public offering.

To trace Chery's roots, we must go back to 2004 when the company attempted its first shell IPOReports suggest that due to a contentious equity issue involving SAIC Motor Corporation, Chery had to abandon its plansIn the years that followed, as Chery sought to fill a substantial funding gap of 30 billion yuan, the company made several attempts to initiate an IPO, only to encounter various obstacles that thwarted its effortsIn 2007, Chery’s Chairman, Yin Tongyue, publicly announced intentions to kickstart the IPO financing plan, but a global financial crisis in 2008 derailed those aspirations.

The situation didn’t improve over the following years; Chery sold 20% of its stake to several investors for 2.9 billion yuan in 2009, which momentarily sparked rumors of a potential IPO, but nothing materialized

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Later, media reports indicated that issues related to related-party transactions silenced conversations about a public listingEfforts to list in the Hong Kong stock market or on domestic Chinese markets faltered as well in the years to come.

A shift occurred when Chery initiated a restructuring plan, which included selling off parts of Chery Holding and Chery Automobile sharesIn 2019, an investment group based in Qingdao acquired 51% of Chery Holding and 35.58% of Chery Automobile, becoming the largest shareholder of both entitiesThis transition also saw other firms like Luxshare Precision and Guoxuan High-Tech invest in Chery, laying the groundwork for its eventual approach toward an IPO.

The road to public listing for Chery has been long and winding, spanning over 21 yearsDuring an interview, Lin Shi, secretary-general of the China- Europe Association for Intelligent Connected Vehicles, remarked on the urgency that Chery should feel regarding its listing, highlighting that the company belongs to a select group of major Chinese automakers yet to go public

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He noted that Chery's quick development in recent years, combined with a strong market performance, underscores the need for capital to support future growth.

Data reflects an impressive leap for Chery in 2024, with its revenue reaching 480 billion yuan for the first time, demonstrating a year-on-year growth of over 50%. Its annual sales surpassed 2.6 million units, a 38.4% increase, and it exported over 1.14 million vehicles, a growth rate of 21.4%. Furthermore, in the burgeoning field of electric vehicles, Chery sold over 580,000 new energy vehicles, marking an astounding 232.7% increase, thus showing its growing prowess in markets that prioritize sustainability.

Yet, as Lin pointed out, the Chinese automotive sector is increasingly competitive, and enhancing financing channels is vital to ensuring Chery can invest adequately in research and developmentThe importance of funding becomes especially pronounced in an environment characterized by rapid technological advancements and heightened expectations for innovation in smart and autonomous driving technologies

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IPOs provide companies like Chery with lifelines in the form of stable capital influx, which fosters growth and development.

As 2025 approaches, Chery's operational strategies before and after the IPO will be crucialAnalysts believe that despite Chery’s commendable output and technological accomplishments over the years, its inability to translate these successes into capital market achievements remains a significant setback in its journeyUnlike rivals like Geely, BYD, and Great Wall Motor, which have successfully leveraged public capital, Chery's historical strategic inconsistencies and institutional constraints have resulted in missed opportunities.

Chery’s public activity at the beginning of 2025, including the introduction of models aimed at redefining the national automobile, signals its intent to seize market share in a rapidly evolving automotive landscape

With a clear objective to maintain high-quality development and to exceed industry sales growth rates, the pressure is mounting for Chery to deliver on its promisesQuestions loom, however, regarding whether they can sustain their momentum given the prevailing economic conditions and intensifying competition.

For instance, while 2024 saw remarkable growth in Chery's electric vehicle segment, it enters a battleground where formidable competitors like BYD, Huawei, and start-ups such as Nio and Li Auto dominateThese companies have established themselves with efficient supply chains and advanced technological capabilities, making the path ahead decidedly steep for CheryComparatively, Lin remains optimistic about Chery's trajectory, pointing out its significant overseas market presence and solid product management, while noting that the speed of growth in its new energy segment still sits at a relatively modest level.

Looking forward, experts suggest that to achieve its ambitious targets for 2025, Chery must refine its product portfolio to develop standout models and enhance brand recognition

Additionally, innovating in marketing strategies, particularly through digital platforms and social media, will be keyFostering a customer-centric approach will be crucial, as will enhancing the intelligence capabilities of its vehicles, including incorporating advanced automated driving functions.

Ultimately, with new models hitting the market and a focus on both established and emerging markets, Chery appears poised for a pivotal yearEncouragingly, industry stakeholders note that by capitalizing on its brand identity as a "national brand," Chery is not just aiming to enter the mainstream automotive market but is also actively exploring opportunities in China’s rapidly growing lower-tier cities.

In summary, with ambitious targets, ongoing strategic revisions, and heightened market dynamics, Chery's Pakistan-bound journey signals a narrative that will be watched with great interest from industry insiders and consumers alike