Chery and Chengdu Auto Show Signal EV Power Shift

The 2026 Chengdu Auto Show opened on August 21 at the Western China International Expo City with a clear message: China’s auto industry is moving from mass electrification to a deeper intelligent-vehicle era. The event spans 220,000 square meters, brings together nearly 120 brands and around 1,600 display vehicles, and features 56 brand launches on opening day alone, including 71 world, national, or regional debuts. At the same time, Chery’s latest financial picture shows a parallel structural shift in the market itself—Chinese automakers are no longer relying only on domestic growth, but increasingly on exports, new-energy vehicles, and China’s cost advantage in batteries and manufacturing.

Chengdu Auto Show Becomes China’s Second-Half EV Barometer

As the first major A-class auto show of the second half and the first large-scale event after Chengdu was approved as a national pilot city for auto circulation and consumption reform, this year’s Chengdu show is more than a regional exhibition. It is a strategic pulse check for the industry ahead of the traditional "Golden September, Silver October" sales season.

Several themes stand out:

• Electrification is now baseline, not the headline
• Smart driving and smart cockpits are becoming the new battleground
• Chinese groups are competing as multi-brand ecosystems, not single marques
• Foreign brands are accelerating localization to stay relevant in China

From mainstream family EVs to premium SUVs, intelligent MPVs, off-road electrified models, and even domestically developed motorsport hardware, the show reflects a market that is broadening and fragmenting at the same time.

Chinese Brands Take the Biggest Stage

Domestic automakers dominated the show floor with increasingly coordinated group-level strategies.

BYD’s five-brand push

BYD Group occupied its own hall with:

• Dynasty series
• Ocean series
• Denza
• Fangchengbao
• Yangwang

Key debuts included:

• BYD Dynasty “Da Han” global debut
• Fangchengbao Tai 9 global debut
• Fangchengbao S GT global debut

BYD also used the event to highlight core technology rather than just products, including:

• Second-generation Blade Battery
• God’s Eye intelligent driving system
• Flash charging technology

Chery, Great Wall, and others broaden the fight

Chery arrived with five brands—Chery, iCAR, Zongheng, Exeed, and Jetour—showing a wide product spread from city cars to rugged SUVs. New models included the Fulwin T7, Arrizo 7, new QQ3 Modern Edition, iCAR V25, Exeed EX9, and Zongheng G700.

Great Wall, meanwhile, leaned on its diversified portfolio:

• Haval
• Tank
• Wey
• Ora
• GWM Poer
• Soul

Important new models included the new Tank 300, Wey V8X, GWM H10, and Ora 5GT.

Other Chinese brands also used Chengdu for meaningful launches:

• Deepal S05 national debut
• Dongfeng Fengshen L8Y launch
• Hongqi G919 appearance
• Roewe Jiayue 07 reveal
• MG 07 display

The broader takeaway is that Chinese OEMs are no longer competing only with isolated hero products. They are building coordinated portfolios across price bands, powertrains, and customer niches.

Smart EV Start-Ups Keep Raising the Stakes

The new-energy start-up and tech-backed segment was one of the show’s biggest draws.

Harmony Intelligent Mobility expands its matrix

Huawei-backed Harmony Intelligent Mobility presented a five-brand lineup:

• Aito
• Luxeed
• Stelato
• Maextro
• Shangjie

Notable highlights included:

• Maextro V800 and V680 appearing at the show for the first time
• Maextro S800 Collector Edition shown in Chengdu
• Stelato G9 appearing after launch
• New Luxeed RX making a major show debut
• Core models such as Aito M9, Aito M8, Stelato S9, Luxeed V9, and Shangjie Z7 also on display

XPeng, Xiaomi, Leapmotor and IM Motors add momentum

Among the standout presentations:

• XPeng MONA L03, the first SUV in the MONA series, equipped with a second-generation VLA smart driving system
• Xiaomi N90 Max and N70 Max smart SUVs launched into the spotlight at the show opening
• Leapmotor A05 made its show debut
• New IM L6 appeared, including a high-profile Jimmy Choo co-branded version

The emphasis is telling: smart-driving branding, software-defined cabins, and high-voltage charging architecture now attract almost as much attention as range or acceleration.

Luxury and Joint-Venture Brands Double Down on Localization

Foreign and luxury brands are not leaving China’s EV race—they are adapting to it.

Premium German brands move deeper into EVs

• Mercedes-Benz unveiled the new long-wheelbase GLE SUV in a global debut and opened public test drives
• BMW started pre-sales of the Neue Klasse iX3 long-wheelbase version, highlighting intelligent driver assistance and a smart cabin
• FAW-Audi displayed both ICE and EV products, with new AUDI E5 Sportback and E7X variants

Joint ventures sharpen their China strategy

Key models from mainstream joint-venture players included:

• Buick GL8 Lushang
• Buick Zhijing L7
• Hyundai IONIQ V
• SAIC Volkswagen ID.ERA 8X
• SAIC Volkswagen ID.ERA 5X

The appearance of the FREELANDER brand, jointly developed by Chery and Jaguar Land Rover, also underlined how international companies increasingly need Chinese product development and local partnerships to stay competitive.

The Real Story at Chengdu: Technology Has Moved From Spec Sheet to Experience

One of the most important trends at the show was how technology was presented. Instead of abstract claims, automakers increasingly used live demonstrations, scenario-based displays, and interactive showcases.

Notable technology highlights

• BYD demonstrated battery, charging, and ADAS capabilities
• Great Wall showcased its Guiyuan technology architecture, Hi4 intelligent four-wheel-drive hybrid system, a new diesel hybrid, self-developed V8/V6 engines, and a GT3 power architecture
• Chery presented its Rhino battery and AI tech under an “AI Technology City” theme
• Huawei displayed ADS 5, an 800V high-voltage platform, 6C ultra-fast charging, and steer-by-wire technologies

Outside the halls, consumers were given a more tangible feel for capability:

• Denza Z9GT performed unmanned drifting demonstrations
• Yangwang U8 showed emergency floating and a 45-degree slope challenge
• Fangchengbao offered experiential off-road demonstrations

This matters because China’s EV competition is no longer just about claiming better hardware. It is about proving that hardware and software are ready for mass-market deployment.

Chery’s Numbers Show a Bigger Industry Shift

If Chengdu showed where the market is heading, Chery’s latest results show how quickly Chinese automakers are being forced to adapt.

On the surface, Chery’s first-half performance looked mixed:

• Net profit down 9%
• Attributable net profit down 11.7%
• Domestic retail volume down by more than one-third
• Premium brands Exeed down 44.9% and Zhijie down 56.9%

But those headline declines obscure a major transformation.

Overseas revenue now dominates

Chery reported:

• Total revenue: RMB 143.28 billion
• China revenue: RMB 44.312 billion, down 41.7% year-on-year
• Overseas revenue: RMB 98.968 billion, up 51% year-on-year
• Overseas share of revenue: 69.1%

That means Chery is no longer primarily a China-dependent company from a revenue perspective.

Product mix is also changing fast

The company’s passenger-vehicle revenue barely changed overall, but the composition shifted sharply.

And by powertrain:

The most striking point is that Chery’s new-energy vehicle gross margin rose from 5.2% to 12.8%, while ICE gross profit fell. In other words, incremental profitability is increasingly coming from EVs and hybrids, not gasoline cars.

Why profit still fell

The main reason was not operations, but currency swings:

• Foreign exchange net loss: RMB 2.092 billion
• Versus a RMB 3.398 billion net FX gain a year earlier
• That creates a swing of roughly RMB 5.49 billion

Operationally, Chery actually became more efficient. Its average selling price fell by around 7%, but costs fell faster, lifting gross profit.

Chery’s Strength Also Reveals a Risk

Chery’s export story is impressive, but it also exposes a strategic contradiction.

The company is winning overseas partly because:

• Chinese manufacturing costs remain globally competitive
• Its product mix is shifting toward affordable NEVs
• Export markets often offer better margins than China’s brutally competitive domestic market

But the same report suggests some vulnerabilities:

• High-end brand momentum remains weak, especially at Exeed and Zhijie
• NEV margins, although much improved, are still below ICE margins
• Global success depends on variables Chery cannot fully control, including:
  • overseas EV adoption speed
  • tariff policy
  • localization pressure
  • competitive cost reductions from Japanese, Korean, and local rivals

There is also a financing quality question. By the end of June, Chery’s combined accounts payable and notes payable to suppliers reached RMB 145.668 billion, exceeding its entire first-half revenue. Notes payable rose to RMB 50.327 billion, about 2.6 times the prior level, indicating growing reliance on supplier financing.

That does not erase the achievement, but it is a reminder that China’s low-cost EV machine is built not just on engineering efficiency, but on a demanding industrial supply chain model.

Chengdu’s Local Manufacturing Story Matters Too

The Chengdu show also highlighted the importance of regional manufacturing clusters in China’s EV expansion.

A total of 15 “Made in Chengdu” vehicles were displayed by automakers producing locally, including:

• FAW Toyota Avalon
• Toyota Prado
• Dongfeng Yijing X9 production version entering delivery
• Jetta eM6 debut
• Volvo XC60, ES90, and EX90
• Dongfeng Peugeot-Citroën local models such as Peugeot 5008, 4008, 408, Citroën C5 X, and Tiany models
• Geely products including Lynk & Co 06, Zeekr X, and Geely Xingyuan

This local content focus is not cosmetic. It shows how Chinese cities are positioning themselves not just as sales markets, but as integrated production, parts, logistics, and innovation hubs.

Why This Matters Globally

The combination of Chengdu’s product blitz and Chery’s financial restructuring says a lot about the next phase of the global EV race.

Key implications

• China’s EV battle is evolving from electrification to intelligence. Battery-electric adoption is no longer enough; automakers now need credible ADAS, cockpit software, and charging ecosystems.
• Exports are becoming central to Chinese OEM economics. Chery is a prime example, but it is not alone.
• Battery and manufacturing scale remain China’s strategic advantage. Even where vehicle brands differ, the underlying edge still comes from supply chain depth and cost control.
• Foreign automakers must localize faster. Product cycles, software expectations, and pricing pressure in China are forcing premium and mainstream global brands to rethink their business models.
• Profit quality matters more than unit growth. Chery’s results show that revenue mix, FX exposure, supplier terms, and margin structure now matter as much as headline deliveries.

What to Watch Next

Several questions will shape the market in the months ahead:

1. Can smart driving features translate into sustainable pricing power?
2. Will Chinese brands maintain export momentum if trade barriers rise?
3. Can high-end Chinese marques such as Exeed, Zhijie, Denza, and Yangwang build durable premium demand?
4. Will battery cost declines continue fast enough to support margins as NEV mix rises further?
5. How quickly can foreign brands adapt to China’s software-led competition?

For now, the Chengdu Auto Show shows where the showroom battle is heading, while Chery’s results reveal the financial mechanics behind it. China’s EV sector is still expanding, but the next winners will be those that can combine export resilience, software capability, battery cost leadership, and healthier profitability all at once.