Gasgoo Munich- The Chinese auto market remained under pressure in the first quarter of 2026. Data from the China Passenger Car Association (CPCA) shows cumulative retail sales hit 4.236 million units, a 17% year-on-year decline—the steepest drop in a decade, barring the pandemic-hit 2020. As domestic sales took a sharp hit, Chery Automobile released its first-quarter earnings on April 28, delivering a relatively solid scorecard.
Gross Margins Soar, R&D Spending Ramps Up
Chery generated 65.87 billion yuan in revenue for the first quarter of 2026, with gross profit reaching 10.56 billion yuan—a 24.9% surge from a year earlier. The gross margin widened to 16.04%, up from 12.39% in the same period last year. Net profit attributable to shareholders stood at 4.17 billion, keeping earnings on stable ground.
Against a backdrop of squeezed industry profits, the significant expansion in gross margin stood out as the highlight of the quarter. According to the China Association of Automobile Manufacturers (CAAM), the overall industry profit margin slumped to a low of 2.9% in Q1 2026. By optimizing its product mix and controlling raw material costs, Chery managed to achieve a counter-cyclical rise in profitability.
Image Source: Chery
On the expense side, financial costs dropped sharply year-on-year, cash flow remained robust, and the asset structure continued to improve. Meanwhile, the company doubled down on R&D, investing 2.85 billion yuan in the first quarter—a 25.5% increase.
Chery noted that cumulative R&D investment has exceeded 30 billion yuan, centered on electrification and intelligent technologies. This sustained push into high-end technology and smart features lays the groundwork for stronger competitiveness in future products.
From a balance sheet perspective, Chery’s total assets reached 279.04 billion yuan by the end of the first quarter, up from 259.35 billion at the end of 2025. Net assets grew to 55.31 billion, further optimizing the financial structure.
Exports Lead as Product Rollout Accelerates
Chery Group sold 601,712 vehicles in the first quarter of 2026. Of these, new energy vehicle (NEV) sales reached 161,202, showing steady improvement. Exports were particularly impressive, hitting 393,311 units—a 53.9% year-on-year jump—allowing Chery to maintain its lead in China’s auto export race.
Chery has ranked first among Chinese passenger car exporters for 23 consecutive years, with cumulative exports exceeding 6 million units. To date, the Chery Group boasts 19.12 million global users, including over 6.23 million overseas.
Image Source: Chery
In terms of export structure, high-end markets have become a key growth engine. Chery has entered 18 European countries; in the first two months of this year, sales in the UK and EU reached 39,135 units, surging 200% year-on-year. NEV sales in those markets hit 11,484 units, up 250%.
Europe now accounts for 20% of Chery’s NEV exports, making it one of the most heavily weighted regions for its overseas electric sales. In Central and South America, Chery is also seeing broad-based growth as its global footprint expands.
In the first quarter of 2026, Chery entered a cycle of intensive product launches. On April 22, the all-new Tiggo 9 officially hit the market, offered in four trims: Luxury, Premium, Elite, and Falcon 500. Official guide prices range from 159,900 to 179,900 yuan, with limited-time offers starting as low as 146,900 yuan. The Tiggo 9 features the Kunpeng Power engine with a thermal efficiency of 48.57% and debuts HEV 5-degree battery technology, building a technological moat for internal combustion models.
On April 24, at the 19th Beijing International Automotive Exhibition, the Chery Group showcased six brands under one roof: Chery, EXEED, JETOUR, Zongheng, iCAR, and Luxeed. The display featured 57 key models and 31 cutting-edge technology exhibits, spanning internal combustion, hybrid, range-extended, and pure electric powertrains.
The Chery brand displayed 16 models, including five concept cars—the Tiggo X, Arrizo S, and Arrizo X—that made a striking debut. The Fengyun brand’s first pure electric flagship, the Fengyun A9, officially opened pre-orders.
EXEED presented eight models, including the X-CONCEPT, EXEED ES7 GT, EXEED EX9, and EXEED EX7, highlighting its technical strength in the 3.0 era. JETOUR saw the official launch of the Traveler PLUS and Traveler PLUS C-DM duo, while the Traveler 8 and Freedomer 7 PLUS made global debuts. The iCAR brand arrived with the ROBOX concept, ROBOB electric motorcycle, and the V23 and V27 family, showcasing its innovation capabilities across the board.
Regarding high-end positioning, the FREELANDER brand—a global luxury new energy technology brand co-created by Chery and Jaguar Land Rover—made its global debut on March 31, with the Concept 97 turning heads.
During the Beijing show, the first mass-produced model under the FREELANDER brand was officially named the "FREELANDER 8." Positioned as a luxury tech all-terrain SUV, it is set to launch domestically in the second half of the year. With this, Chery Group’s high-end layout—encompassing EXEED, Zongheng, and FREELANDER—has taken shape.
Image Source: Chery
In the first quarter, Chery completed its "super product shelf" layout for new energy vehicles, covering the 50,000 to 500,000 yuan price range and spanning from small cars to luxury MPVs. The new QQ3 garnered 56,879 orders upon launch, demonstrating strength in the A0-segment pure electric market. The Fengyun T9L secured 15,829 pre-orders in 24 hours, validating its hit potential in the hybrid sector. The iCAR V23 officially went on sale, the EXEED EX7 opened blind bookings, and the Luxeed V9—the brand’s first flagship MPV—made its debut. The NEV lineup now covers micro cars, sedans, SUVs, and flagship MPVs.
Overall, against a macro backdrop of contracting industry demand, Chery achieved a significant boost in gross margins by accelerating its global expansion and optimizing its product mix. Future growth momentum will hinge on market feedback for new models, the continued volume surge in exports, and the delivery pace of 17 key models scheduled for the full year.
