How Can Niche Pickups Break Through? — Chery's Strategy and Underestimated Market Opportunities

Gasgoo Munich- In the broader landscape of China's auto market, passenger car sales have surged past the 30 million mark. Yet, the pickup sector remains distinctly "niche," with volumes hovering below 600,000 units. Still, ripples are spreading through this corner of the industry. As numerous automakers double down on their bets, Chery’s aggressive entry has turned heads.

In April 2025, Chery revived its long-dormant pickup brand, RELY. By September, the company rolled out the gasoline-powered R08 pickup, which racked up over 10,000 sales in just three months. More recently, RELY unveiled its first pure electric pickup, the R08 EV, priced between 127,800 and 158,800 yuan. Looking ahead, the brand plans a busy 2026, launching the R08 Pro, a P3X diesel hybrid, and a suite of modified models for camping, off-roading, and RV living.

RELY R08 EV (Image source: Chery RELY)

The pickup arena is already crowded with players like SAIC Maxus, Great Wall Motor, Changan, BYD, and JAC. So, what opportunity and headroom is Chery chasing by making its move now? Across the wider Chery Group, the past two years have seen a dual harvest at home and abroad—but what marketing strategy will it apply to pickups? To answer this, Gasgoo recently sat down with senior executives at Chery RELY. The following is an analysis of their insights for the industry.

Domestic Contraction, Overseas Opportunity Remains

Data shows terminal sales of pickups in China fell to 258,200 units in 2025, a 6.2% year-on-year decline, signaling an overall contraction. Asked why Chery is committing heavy resources despite this trend, Zhang Jiaming, deputy general manager of Chery Commercial Vehicle and general manager of the RELY Brand Division, pointed out: "The Chinese pickup market does not represent the whole picture. The global market is relatively stable, and some regions are still seeing growth."

Zhang Jiaming, Deputy General Manager of Chery Commercial Vehicle and General Manager of the RELY Brand Division (Image source: Chery RELY)

Globally, the pickup market is vast, with total sales reaching approximately 8.9 million units in 2025. Chinese brands are accelerating their "going global" push, with exports hitting 300,000 units that year—accounting for over 50% of total Chinese pickup sales. In other words, half of all pickups produced in China are now sold overseas.

According to Zhang, the majority of R08 orders since launch have come from overseas markets. "Chery's total exports approached 1.35 million units in 2025, up 17.4% year-on-year. That is one of the core reasons and confidence behind our pickup strategy. Our target is the global market; these vehicles are born as global cars." He added that RELY has already entered more than 30 countries, completing product launches in over 20 of them.

Chery's global strategy is clear: diversify powertrains to match regional needs. In regions with strict emissions standards like Europe, the focus is on pure electric and hybrid versions to align with low-carbon trends. In areas with strong demand for diesel power—such as South America, Australia, New Zealand, and Africa—the company is prioritizing diesel and diesel-hybrid models. It is revealed that in 2026, Chery plans to launch the P3X diesel hybrid simultaneously in China and the Australia-New Zealand market to further expand its global footprint.

RELY P3X (Image source: Chery RELY)

Viewed together, the saturation of the domestic market is forcing companies to adopt a global perspective for their product and technology layouts, pushing them into higher-dimensional competition.

Regarding overseas prospects, Gu Guoquan, deputy secretary-general of the Pickup Branch of the China Association of Automobile Manufacturers (CAAM), noted that Chinese pickups have built a solid reputation along the "Belt and Road," gaining recognition for quality and value. In markets traditionally dominated by American and Japanese brands—like Australia, New Zealand, and Mexico—market share is steadily rising. This shift is breaking the old competitive landscape and laying the groundwork for the globalization of Chinese pickups, including Chery's RELY.

Electric Pickups Enter a Sweet Spot: Penetration Soars, Product-Driven Growth Takes Hold

Despite the overall pressure, electric pickups are bucking the trend. In 2025, the penetration rate of electric pickups surged from 4.3% to over 9%, with projections to break 12% in 2026. "We chose to launch the R08 EV now precisely because we have identified this segment—currently niche but with unlimited potential," Zhang said.

Annual penetration rate of electric pickups in China

At the same time, Zhang noted that the electric pickup market has entered a "product-driven, user-recognized" phase, with a mass-market explosion expected in 2026.

The development of the RELY R08 EV was based on in-depth research across 218 cities and hundreds of pickup users. The study identified three major pain points with existing pickups:

1. High operating costs for gasoline pickups: As tools of production, their return on investment is less than ideal.

2. Weak structural strength and insufficient confidence in heavy loads: The best-selling pickups in the current market largely use unibody construction and lack a frame.

3. Insufficient intelligent features: Basic smart functions like remote temperature control and connectivity are not yet widespread, failing to meet users' real needs.

Targeting these pain points, RELY has focused its efforts on the R08 EV to build a high-value matrix:

● On economy, the price range of 127,800 to 158,800 yuan significantly lowers the barrier to entry. Furthermore, operating costs are less than 0.1 yuan per kilometer—saving up to 100,000 yuan over three years compared to a gasoline pickup.

● On safety, it uses a non-unibody body with a frame and a rated load capacity of 845 kg—more than 40% higher than unibody pickups in the same class, solving the issue of deformation under heavy loads. Additionally, all models come standard with dual airbags and tire pressure monitoring, while higher trims upgrade to six airbags and include L2-level intelligent driving assistance.

● On intelligence, all models feature standard mobile app remote control. Large-screen versions come with navigation and multimedia systems, while top-tier models are equipped with the 8155 chip and a 15.6-inch central control screen. Practical features like remote temperature control are fully covered, achieving "intelligence without gimmicks, and maximum practicality."

Image source: Chery RELY

● On range, the maximum reaches 505 km, and standard 2C fast-charging technology allows the battery to go from 15% to 80% in about 25 minutes at ambient temperatures.

● For complex road conditions, the R08 EV plans to launch a four-wheel-drive version in the second quarter (it is currently two-wheel drive). "Electric pickups are currently concentrated in provincial capitals, while sales are lower in mountainous regions like Yunnan, Guizhou, and Sichuan due to complex terrain. Four-wheel-drive products can better meet the needs of specialized agriculture in these areas. For example, in orchards, the vehicle can park on a hardened road while drones lift out baskets of fruit."

While there are many pure electric pickups on the market, few have achieved significant volume. RELY’s approach—driven by product and rooted in actual user needs and pain points—has established solid market competitiveness. This demonstrates that even in a niche market, accurately capturing structural trend shifts and being the first to provide mature solutions can build a powerful first-mover advantage.

Regarding marketing strategy for electric pickups, Zhang stated: "We will advance simultaneously in China and select emerging overseas markets. We will anchor ourselves in China first, as its new energy progress is globally leading. At the same time, in overseas markets showing new energy trends—such as Thailand and Malaysia in Southeast Asia, and Brazil and Mexico in Central and South America—we have already detected customer intent."

It is worth adding that looking at the global market, Europe and Australia have implemented stringent emission regulations. Traditional large-displacement pickups are gradually exiting, boosting demand for new energy models. As international mainstream brands lag in their transition and product iteration cannot keep up with market changes, this gap provides a window of opportunity for Chinese pickups, including Chery RELY, to "overtake on the bend."

The Rise of C-End Consumption: From "Workhorse" to "Life Companion"

For a long time, pickups were labeled as "workhorses" or "cargo trucks," with users primarily from the B-end (business sector). But with the development of electrification and intelligence—and especially as policies continue to lift restrictions, such as eliminating mandatory body markings and relaxing city access limits—pickups are gradually moving into the lives of individual users.

Zhang pointed out that, to date, about 95% of prefecture-level and above cities in China have lifted restrictions on pickups entering urban areas. The areas that remain fully restricted are mainly core zones in certain first-tier cities and provincial capitals. However, even these places are attempting to open up through permit systems with "time and quantity limits," and it is believed that restrictions, including those on specific roads, will continue to ease. Additionally, policies such as the 15-year mandatory scrapping rule and annual inspections are expected to be optimized in the near future.

Driven by these favorable factors, industry data shows that the proportion of C-end (consumer) users for some electric pickup brands has reached as high as 70%. Shi Jingcheng, the Chief Engineer (CE) for the RELY R08 EV, predicts that the ratio of B-end to C-end users in the R08 EV's first year on the market will be roughly 1:1. As the popularity of electric pickups increases and the base of C-end users grows larger, their share is expected to gradually surpass that of the B-end.

Shi Jingcheng, Chief Engineer of the RELY R08 EV (Image source: Chery RELY)

Regarding how to deploy electric pickups in B-end and C-end markets, Zhang added that for the C-end, the focus will initially be on regions with relatively pickup-friendly policies and high acceptance of new energy vehicles, such as Hainan, Guangdong, and Zhejiang. In the eastern regions, where there is still significant room for growth in pure electric penetration for both commercial and passenger vehicles, the strategy is to anchor large B-end clients (such as state-owned enterprises, central enterprises, and government procurement) and small B-end clients (such as drone operators and small mines), while actively exploring the C-end market.

It is also worth mentioning that as C-end users grow, pickup usage scenarios are multiplying. To cater to the personalization needs of these consumers, Zhang revealed that RELY plans to launch the R08 Pro, which leans more towards passenger and leisure use, along with modified versions like camping and RV models. These will cover diverse scenarios such as off-roading, travel, and outdoor camping, truly transforming the pickup into a mobile platform connecting life and interests.

This implies that future pickup product development must possess greater scenario insight and flexibility.

Ecological Evolution: From a Single Vehicle to an "Intelligent Wealth-Creation Platform"

Electrification and intelligence have not only altered the form of the pickup but are also driving a systemic shift in its business model. Market observations suggest that pickups are evolving from isolated transport tools into "intelligent wealth-creation platforms" that integrate energy, equipment, data, and services.

On the day of the R08 EV launch, Chery initiated the "Kirin Power Ecological Alliance." Using the RELY R08 EV as an intelligent terminal and energy base, the alliance integrates upstream service partners (drones, modification parts, crop protection water tanks, pesticide hoppers, water pumps, etc.) and connects downstream training institutions and operational units. It even introduces one-stop financial solutions covering "vehicle + drone" packages. The aim is to collaboratively solve the complex problems users encounter in real wealth-creation scenarios, driving a three-level leap from "intelligent tools" to "scenario solutions" and finally to an "open ecological platform."

Image source: Chery RELY

"Our solutions cover various scenarios including plant protection, lifting, inspection, firefighting, and cleaning. This is not a simple patchwork of products. We spent a significant amount of time on technical integration, open sourcing, and joint testing to ensure the entire solution was mature and reliable before officially releasing it. Of course, this is just the first step," Shi stated.

This means pickup companies are no longer just "selling cars." By building an open ecosystem and diving deep into users' actual work and life scenarios, they are becoming partners that empower the wealth-creation process. This shift from product delivery to value co-creation is becoming key for pickup companies to establish a sustainable competitive advantage in a niche market.

A "Big Future" in a Niche Lane

Though "small," the pickup market holds structural growth opportunities. From overseas expansion to the rise of C-end consumers, from electrification penetration to the construction of ecological platforms, this transformation—driven by technology, policy, and user demand—is redefining the value and role of the pickup.

Chery's strategic logic in this field reveals the business wisdom that "niche does not mean no space." The key lies in the perspective and strategy used to reassess value and create demand.