Electromobility in China China’s E-Car Makers: Competing on More Than Just Price, Innovation Leads the Charge

Staying objective is key when examining China’s e-car sector, yet Chery’s October 18 press event truly was an “innovation showcase.” At the "Chery Global Innovation Conference 2024," China’s fourth-largest electric and hybrid vehicle manufacturer unveiled a lineup of new developments, leaving the trade press impressed.

Chery made headlines with the announcement of its first solid-state battery in development, promising to extend the range of electric vehicles to an impressive 1,500 kilometers. According to Gao Xinhua, Chery's Executive VP, the battery could hit the roads by 2026, with full-scale production anticipated by 2027. A prototype showcased at the conference in Wuhu, Anhui Province, demonstrated resilience, remaining operational even after a section was removed. Solid-state batteries are viewed as the “next generation” for EV power, expected to surpass conventional lithium-ion technology with higher energy density and enhanced safety, making them a compelling option for future EV innovation.

Still in 2024: solid-state batteries with an energy density of 400 Wh/kg

Technically, however, it is anything but easy to develop solid-state batteries and get them ready for series production. Toyota, which was said to be the global technology leader, has pushed back its timetable for the mass production of solid-state batteries to 2027. Volkswagen and BMW ditto. And even CATL is still struggling with the development of solid-state batteries.

Chery's announcement must therefore still be greeted with a dash of skepticism. "Chery has not revealed many specific parameters and we are unable to conduct a detailed analysis," commented the Chinese tech portal "Autolab". However, Chery did specify that its solid-state batteries would reach an energy density of 400 Wh/kg this year, which is expected to rise to 600 Wh/kg by next year. That is a lot.

The company appears committed to its bold ambitions. Last year, Chery's CEO Yin Tongyue unveiled a series of innovations at the annual conference, emphatically stating that Chery would be “rude”—or "bu keqi" in Chinese—signaling that they intend to ramp up competition aggressively in both electric and hybrid vehicle markets. This phrase reflects Chery's resolve to push boundaries and challenge industry standards, emphasizing their intention to lead in automotive innovation and keep competitors on their toes.

Rising sales figures

And so it has come to pass. Not least due to many innovations that are well received by China's car buyers, the monthly Chery sales figures for "New Energy Vehicles" (NEV), i.e. electric and hybrid vehicles of all kinds, have risen from 30,000 to 40,000 to 50,000 and most recently in September to almost 60,000 units—58,941 to be exact.

This was an increase in Chery sales in the e-mobility segment of more than 183 percent year-on-year. In September, Chery had thus risen to fourth place among the most successful Chinese NEV manufacturers in terms of unit sales.

Chery will be "bu keqi" again this year, the company boss shouted once more from the stage of his own car show in the Chinese province. Chery is owned by the city government of Wuhu. The shrewd industry veteran Yin Tongyue learned his trade at FAW-Volkswagen, among others. He plans to sell 100,000 NEVs per month by the end of this year, he said.

Up in the air

The second eye-catcher at Mr. Yin's innovation conference this year was the presentation of Chery's first flying car. Although it is still a prototype, it has already successfully completed an 50 miles (approx. 80-kilometer) test flight. The futuristic-looking two-seater can take off and land vertically and is designed for two passengers who, according to the company, will take off in the vehicle whenever a traffic jam gets on their nerves. And that is often the case in China.

As soon as it has landed again, the flying Chery car can then continue driving completely autonomously. It has neither a steering wheel nor an accelerator pedal. The maximum flight altitude is less than one kilometer. The maximum flight speed is 120 km/h (approx. 75 mph). The Chery flying car can currently fly for up to 40 minutes—but Chery is already working on the solid-state batteries of the future.

So now that Xpeng, GAC, SAIC, Geely and, more recently, Chery have unveiled flying cars, things are starting to get serious in China. "Judging from the current development trend, the commercialization of flying cars could come faster than the public expects, similar to autonomous driving vehicles, even if there are safety concerns," says the specialist portal CarNewsChina after the Chery conference in Wuhu.

Battery developments

Oh yes, there were also a whole host of other product presentations at the innovation conference. Chery presented the next generation of its autopilot, the "Zdrive C-Pilot 5.0". Plus a new, cloud-controlled "VLA Large Model". And three new battery types from the newly created "Kunpeng" brand: a "square lithium iron phosphate battery", a "square ternary battery" and a "large cylindrical ternary battery".

All three battery innovations enable very fast charging times with the 6C standard. Five minutes of charging should be enough for a range of 400 kilometers (almost 250 miles). The batteries are to be launched on the market this year in Chery's first NEV brands (Omoda, iCar, Exeed).

It can therefore be stated quite objectively and soberly that this year's Chery Innovation Conference was a good example of how strongly Chinese car manufacturers are currently relying on innovations in order to achieve unique selling points in the fierce competition in the world's largest car market.

FrFrom a European perspective, the rapid pace of technological advancements in areas such as power batteries, intelligent driving solutions, and even flying cars from China warrants close attention. It is not solely price that allows China to dominate the global automotive market. Chery, for example, has already become the largest car exporter in China. Furthermore, China has surpassed both Japan and Germany to become the world’s largest car-exporting nation, highlighting its growing influence in the automotive industry.
 These developments indicate that China is not just competing on price but also driving innovation, positioning itself as a global leader in the automotive sector. With major strides in technology, China is shaping the future of mobility.om a European perspective, all these innovations, these astonishingly fast technological iterations in power batteries or intelligent driving solutions or flying cars should be watched closely. It is by no means just the price that China is using to conquer the global market for cars. Chery is already China's largest car exporter. And China has overtaken both Japan and Germany in terms of exports, making it the world's largest car exporting nation. (se)

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