Accordingly, there is still further progress to be made in combustion engines Chery – China’s largest vehicle exporter – although the country’s automotive industry has earned a strong reputation for electric vehicles (EVs).
A number of automakers, including Volvo, Mercedes-Benz and Volkswagen, had previously pledged to sell only electric vehicles on certain dates – only to postpone the milestone after rollouts were slower than expected due to factors including global market volatility. Others, like Ford, have lost billions developing electric vehicles.
In conversation with Daily SparkzPeter Matkin, chief engineer at Chery International, said the company had taken a similar approach to Toyota – the world’s top-selling automaker – and had not given up on developing internal combustion engines despite the push towards electric vehicles.
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“We haven’t stopped,” Mr. Matkin said. “We continued to try to increase the efficiency of the combustion engine. That’s interesting when you work with traditional OEMs in China; it kind of defies logic.”
“Globally speaking – and everyone is announcing – everyone is saying that we are not going to spend anything on the internal combustion engine – everything is new energy.”
New Energy Vehicle (NEV) is a Chinese industry term that includes plug-in hybrids (PHEVs), hydrogen fuel cell electric vehicles (FCEVs), battery electric vehicles (EVs) and range extended electric vehicles (EREVs).
“And then, in contrast, let’s say we’re developing a brand new turbo combustion engine with an Atkinson cycle – it’s going to be 40, almost 45 percent efficient, best in class, but I think that’s interesting, why would we do that?” he continued.
“The Chinese are going against what some other traditional OEMs are doing and they are taking some risks and it is working.”
In Australia, Chery offers a range of powertrains, from petrol to hybrid, plug-in hybrid and electric options.
Chery will launch a dual-cab car in Australia later this year, currently known by the internal code ‘KP31’ and similar in size to the Ford Ranger and Toyota HiLux, which will be launched as the segment’s first diesel plug-in hybrid model. This is the first time Chery has offered a diesel engine in Australia.
Other brands are also taking this “multi-pathway” approach, including GWM, which is rapidly expanding its hybrid and plug-in hybrid offerings but will still introduce an all-new 3.0-liter turbodiesel in its Tank 500 SUV – and probably in its Cannon Alpha crew cab – in 2026.
Similarly, Toyota has said it is working on a new generation of internal combustion engines for future models, which it will offer in certain models – and different countries – as part of its “multi-pathway” powertrain approach.
Chery exported more new vehicles than any other automaker in China last year and remained the country’s largest auto exporter for the 23rd year in a row, with 1.4 million shipments abroad.
Key export destinations included Russia, Mexico and South America, while the brand continued to expand in Europe after opening its first vehicle assembly plant in Barcelona, Spain, in 2024.
Recent changes to regulations in Europe have resulted in the planned zero-emissions mandate by 2035 – which effectively banned internal combustion engines – being reduced to 90 percent, clearing the way for hybrid vehicles with petrol and diesel engines.
In Australia, Chery currently offers the Tiggo 4 small petrol SUV – which, at $23,990 before on-roads, is tied with the Mahindra XUV 3X0 as the cheapest SUV in Australian new car showrooms. It also sells the petrol Chery C5 with hybrid models across its SUV range, as well as the electric E5.
Despite previous gains for ICE, there is still room for improvement, says Chery’s tech boss.
“There’s definitely more work to do. We’ve got 44.5 per cent engine efficiency now, which is world class – it’s better than anything else. But we’ve still got 55 per cent to go, 55 per cent that’s not yet efficient,” Mr Matkin said.
“Of course we now have to find the technologies and the chemistry and processes for this.
“You get one or two percent. People say, ‘One percent fuel economy, that’s not very much’ – but it’s huge, it’s really hard (to achieve).
MORE: Explore the Chery showroom
