(Yicai) Nov. 13 -- Chinese automakers should avoid malicious low-price competition when expanding overseas and instead follow local rules and contribute to societies abroad, said Yin Tongyue, chairman of Chery Automobile.

New energy vehicles and smart cars have developed quickly in China but more slowly in some other countries, partly due to infrastructure and the difference between oil and electricity prices, Yin said yesterday at the 31st China Society of Automobile Engineers Congress, which opened on Nov. 11.

Chinese carmakers should help those local brands with the new technology, just as they themselves benefited in the past by learning from foreign brands, he said. The goal should be differentiation, not direct competition with local auto giants, he pointed out.

While foreign brands previously enjoyed commercial success in China, they also contributed to the localization of China’s auto industry, including developing local talent, supply chains, and regulatory frameworks, Yin noted.

These efforts not only supported the growth of local companies but also enhanced their quality, cost control, and workforce capabilities, he said, adding that Chery learned much of its export practice from the foreign brands doing business in China.

Finally, Yin pointed out that the NEV business cannot be run at a loss. Some automakers hope for large returns from the capital market to make up for their operational shortcomings, a business model that is unsustainable, he said.

Anhui-based Chery sold a record 2,024,948 cars in the first 10 months of this year, a 39 percent jump from a year earlier. Some 403,118 were NEVs, there times more than in the same period of 2023, while overseas sales climbed 24 percent to 941,275. 

Editors: Zhang Yushuo, Tom Litting