Chinese automakers ride EV wave with strong 2025 growth

Chinese automakers Geely and Chery reported strong earnings for 2025, with new energy vehicles and overseas expansion driving growth.

Hong Kong-listed Chery posted revenue of 300.3 billion yuan ($41.5 billion), up 11.3 percent from a year earlier, while net profit rose 36.1 percent to 19.5 billion yuan, according to full-year results released on Wednesday. The company's margin improved to 6.5 percent, supported by a sharp rise in electric vehicle sales and improving profitability in that segment.

New energy vehicles accounted for a growing share of Chery's business. Sales in the category jumped 72.5 percent to 826,500 units last year, lifting their contribution to total revenue to 32.6 percent. Gross margin for EVs climbed to 8.8 percent, from just 0.4 percent a year earlier, as scale effects began to materialize.

Overseas markets contributed more than half of Chery's revenue for the first time. Export volumes rose 33.2 percent to 1.29 million vehicles, with international sales generating 52.4 percent of total revenue. Higher average selling prices abroad, about 17 percent above domestic levels, also supported profitability.

Geely, also listed in Hong Kong, reported even faster growth. Revenue rose 25 percent to 345.2 billion yuan, while core net profit increased 36 percent to 14.4 billion yuan. Total vehicle sales climbed 39 percent to 3.03 million units, exceeding its upgraded annual target.

Electric vehicles were a key catalyst. Geely sold more than 1.68 million new energy vehicles in 2025, up 90 percent year-on-year. Its Galaxy sub-brand alone delivered 1.24 million units, becoming one of the fastest-growing mass-market EV lineups in China.

Both companies are doubling down on overseas markets. Geely CEO Gan Jiayue said the group will prioritize international expansion in 2026, targeting exports of 640,000 vehicles, a gain of more than 50 percent.

Chery, meanwhile, is accelerating localization efforts in markets such as Brazil and Southeast Asia, building regional manufacturing and supply chains to mitigate geopolitical and trade risks.

Despite the momentum, challenges remain. Chery executives said pushing into higher-end segments, particularly in the 200,000 to 500,000 yuan price range dominated by domestic EV startups, will weigh on margins in the near term.

The shift toward electrification is also proving financially sound for global automakers, underscoring a broader industry transition.

Audi reported 2025 revenue of 65.5 billion euros ($75.5 billion), slightly up from 64.5 billion euros in 2024, supported by record EV sales. The company delivered 223,032 fully electric vehicles, up 36 percent year-on-year.

In China, Audi plans to launch the A6L e-tron sedan and the AUDI E7X SUV, the second production model from its China-exclusive AUDI brand this year. The first model, the AUDI E5 Sportback, has been available since fall 2025.

Audi China President Johannes Roscheck said the company is seeing early results from its revised strategy in China, reflected in solid deliveries in 2025.

BMW reaffirmed its push into electromobility at its annual conference earlier this month. In 2025, it delivered more than 640,000 electrified vehicles worldwide, up 8.2 percent year-on-year, accounting for about 26 percent of total sales. Fully electric vehicles made up about 18 percent.

Chairman Oliver Zipse said the rollout of Neue Klasse models will be a priority this year, adding that order books for the iX3 SUV are full. A China version of the Neue Klasse iX3 will debut at the Beijing auto show in April.

By the end of the year, BMW expects to offer 20 battery electric vehicles across all brands, further strengthening its competitive position. (source: China daily)