Chery Auto: The Next Chapter of Chery Auto's Globalization, Powered by Sustainability

As manufacturing sector globalization enters a deeper phase, expectations from local markets increasingly extend beyond products to encompass whether a company can act as a long- term contributor. By building a responsible business framework, Chery Auto integrates compliance governance, localized procurement, shared social value creation and public welfare investment into its global operations, enabling the company to participate in development in each country in a locally rooted manner. This shared commitment to responsibility across cultures turns sustainability from a defensive measure into a growth enabler, laying a resilient foundation for Chery Auto's global expansion.

The core of Chery Auto's sustainable brand development lies in reshaping the foundation of supply chain governance through a systematic approach, establishing unified standards for global partners via institutional frameworks. The company has issued policies such as the Supplier Code of Conduct, Integrity Statement, Responsible Minerals Commitment, and Zero Deforestation Pledge, incorporating environmental, business ethics and labor rights requirements into shared norms for global suppliers, ensuring consistent implementation of sustainability principles at the institutional level.

Unlike traditional supply chain governance models that focus on screening, Chery Auto's goal is building capabilities together with suppliers. Through annual capability enhancement programs, on- site coaching, thematic training and Best- in- Class Supplier Visits activities, the company systematically improves suppliers' ESG capabilities. Meanwhile, the establishment of Chery Auto's multidimensional integrity management system enables digitalized processes for identifying, assessing and improving supplier performance, shifting supply- chain governance from periodic inspections to continuous improvement. In 2024, Chery Auto and ten core suppliers jointly launched Chery Auto Sustainable Supply Chain Initiative, promoting value chain upgrading around nine strategic pillars and fostering a new kind of partnership rooted in shared responsibility and cocreated value.

In global operations, Chery Auto adheres to its localization philosophy of "In Somewhere, For Somewhere, Be Somewhere", establishing around 3,000 sales outlets overseas, and integrating deeply into local economies through localized procurement, employment and management. For example, the localization procurement rate at the Brazil base has reached 80%, driving the development of local manufacturing industries; in Europe, Chery Auto's models fully comply with EU WVTA certification and Euro NCAP safety standards, and its new- energy models rank among the top three in market share in Norway and Sweden.

Chery Auto also employs a systematic model for long- term social value creation. In 2024, the company invested over RMB 35 million in areas such as education equity, assistance for persons with disabilities and impoverished communities, disaster relief, and environmental protection. In October 2025, Chery Auto reached a new strategic collaboration with UNICEF, committing an additional USD 6 million over the next three years to support global education- equity programs. The company also actively participates in biodiversity protection, such as supporting the IUCN Seagrass Conservation Project in Spain, promoting synergies between commercial value and ecological value.

As global industrial chains accelerate their transition toward greener and higher standards, a responsible business system has become the crucial foundation upon which "Made in China" integrates into global markets. By embedding governance transparency, supply chain collaboration, localized value cocreation and green innovation into its systemic capabilities, Chery Auto is building a Chinese model of sustainable branding that is cross- culturally adaptive, cross- industry integrative and cross- regional replicable.