(Yicai) Aug. 14 -- Chery Automobile has launched its second gasoline-powered sedan in two months, even as drivers increasingly shift to electric vehicles, as the Chinese carmaker’s internal combustion engine business generates more revenue and is more lucrative than its new energy counterpart.

The launch of the 2027 Arrizo 8 Pro sedan early this week follows that of the Arrizo 8 Conqueror Edition on June 17. Available in five configurations, the latest addition to the series is priced at CNY100,000 to CNY150,000 (USD14,830 and USD22,240).

Fossil fuel-powered vehicles still command a major presence in China's compact car market, particularly in the CNY100,000 to CNY150,000 price bracket, industry sources told Yicai.

Chery is not yet at a stage where it can abandon its ICE business. Revenue from gas autos accounted for nearly 60 percent of the Wuhu-based company’s total income last year, with a gross profit margin of 15 percent, much higher than that of its new energy vehicles, according to its annual financial report.

ICE vehicles are also been the cornerstone of Chery's exports, the sources noted. The firm was China's largest car exporter for the 23rd consecutive year in 2025, shipping out 1.3 million units, a 17 percent jump from the previous year.

The Arrizo 8 is Chery Auto's best-selling sedan series. Last year, global sales of the models surged 18 percent to 173,668 units from 2024. However, as the overall market share of fossil fuel vehicles has rapidly declined this year, sales of the Arrizo 8 series have been under pressure, down to just 5,724 in July from a peak of 17,089 last December.

Amid persistent market headwinds, Chery needs to launch more competitive products to rekindle buyer interest. The high-spec version of the new Arrizo 8 Pro has the Falcon 500 intelligent driving system, helping challenge the perception that ICE cars are not smart cars. The new model also has optimized chassis and braking calibration, improving the system's handling performance.

Editors: Tang Shihua, Futura Costaglione