There’s still more progress to be made on internal combustion engines, according to Chery – China’s largest vehicle exporter – despite the nation’s automotive industry forging a reputation for electric vehicles (EVs).
A raft of automakers previously pledged to sell only EVs by specific target dates, such as Volvo, Mercedes-Benz and Volkswagen – only to postpone the milestone after slower-than-expected take-up due to factors including global market volatility. Others, like Ford, have lost billions on EV development.
Speaking to CarExpert, chief engineer of Chery International Peter Matkin said the company has followed a similar approach to Toyota – the world’s biggest automaker by sales – by not giving up on internal combustion engine development despite the push to EVs.
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“We haven’t stopped,” Mr Matkin said. “We’ve continued to try and increase the efficiency of the internal combustion engine. It’s interesting when you’re working in China with traditional OEMs; it sort of goes against some of the logic.”
“Looking globally – and everybody’s announcing – they’re all saying we’re not going to spend anything on the internal combustion engine – everything is New Energy.”
New energy vehicle (NEV) is a Chinese industry term that covers plug-in hybrids (PHEVs), hydrogen fuel-cell electric vehicles (FCEVs), battery-electric vehicles (EVs), and extended-range electric vehicles (EREVs).
“And then, in contrast, we’re saying we’re doing a brand-new turbo internal combustion engine with an Atkinson cycle – it’s going to be 40, almost 45 per cent efficient, best in class, but thinking, that’s interesting, why would we do that?” he continued.
“This is the Chinese going against what some other traditional OEMs are doing, and they’re taking some risks, and it’s working.”
In Australia, Chery offers a range of powertrains, from petrol through to hybrid, plug-in hybrid and electric options.
Chery will launch a dual-cab ute in Australia later this year, currently known by its ‘KP31’ internal code, similar in size to the Ford Ranger and Toyota HiLux, which will debut a segment-first diesel plug-in hybrid. This will be the first time Chery has offered a diesel engine in Australia.
Other brands have also been following this ‘multi-pathway’ approach, including GWM which is rapidly expanding its hybrid and plug-in hybrid lineup but will nevertheless introduce an all-new 3.0-litre turbodiesel in its Tank 500 SUV – and likely its Cannon Alpha dual-cab ute – in 2026.
Similarly, Toyota has said it’s working on a new generation of internal combustion engines for future models, which it will offer in certain models – and various countries – as part of its ‘multi-pathway’ powertrain approach.
Chery exported more new vehicles than any other automaker in China last year, remaining the country’s top auto exporter for the 23rd year in a row, sending 1.4 million vehicles overseas.
Its main export destinations included Russia, Mexico and South America, while the brand continued to expand in Europe after it opened its first vehicle assembly plant in Barcelona, Spain, in 2024.
Recent changes to regulation in Europe have seen the planned 2035 zero-emissions mandate – which effectively banned internal combustion engines – lowered to 90 per cent, opening the door to hybrids using petrol and diesel engines.
In Australia, Chery currently offers the petrol Tiggo 4 small 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.
There’s further room for improvement despite previous gains for ICE, says the Chery tech boss.
“There’s definitely more to go. We’re at 44.5 per cent efficient, now, on the engine, which is world-class – it’s better than anything else. But we’ve still got 55 per cent to go, 55 per cent that isn’t efficient yet,” said Mr Matkin.
“We’ve just obviously got to find the technologies now, and the chemistry and processes of how.
“You’re grabbing one or two percent. People say ‘One per cent fuel economy, that’s not very much”’ – but it’s huge, it’s really difficult [to achieve].