A automotive produced by Chinese vehicle producer Chery is on show on the market at a dealership in Vladivostok, Russia, March 22, 2023.
Tatiana Meel | Reuters
China’s largest vehicle exporter, Chery Automobile, noticed its shares bounce in its Hong Kong debut after elevating 9.1 billion Hong Kong {dollars} (US$1.2 billion) via an preliminary public providing.
The inventory traded at HK$34.16, about 11% above the IPO price of HK$30.75. Chery is amongst a wave of Chinese firms tapping Hong Kong’s thriving IPO market.
While the launch proceeded as scheduled, the corporate canceled its deliberate itemizing ceremony on the Hong Kong Stock Exchange because of the metropolis’s shutdown following Super Typhoon Ragasa the day earlier than.
The automaker has been accelerating its enlargement in Vietnam, Middle East and Europe. Its SUV-focused sub-brand Jetour will enter Europe this November by launching three combustion-engine sport-utility autos in Poland.
The automaker in July introduced that it was selling vehicles under its flagship Chery brand in the UK. Chery additionally rolled out its Jaecoo marque earlier in January and Omoda model in Britain final 12 months.
Chery has been “a little bit under the radar” as “everyone has been talking about BYD” in the previous few years, Sino Auto Insights’ Founder and Managing Director Tu Le instructed CNBC’s “The China Connection” Thursday.
“They [Chery] manufacture in multiple countries already, so they’re likely the envy of a lot of Chinese EV makers,” he added, noting the model’s recognition in the U.Ok. and Australia as effectively. “We’re seeing a lot of emergence and strength from the Chery brand.”
However, international headwinds stay. In the U.S., Chinese-made electrical autos face a 100% tariff below Section 301 of the Trade Act of 1974. Canada in October 2024 additionally matched the U.S. by imposing a 100% tariff on Chinese EV imports. The European Union also implemented tariffs on Chinese-made electrical autos, with some going through levies of as much as 45.3%, efficient in late 2024.
Le famous that whereas Chery does have “some exposure,” to tariffs, the vehicle maker can be constructing regionally in the Middle East and Southeast Asia. That mitigates some of the chance and places them in a “much better position” than rather a lot of different gamers who’re trying solely to export, stated the managing director.
Chery sold 242,736 vehicles in August, of which 129,472 had been exported, marking a year-on-year enhance of 14.6% and 32.3%, respectively.