Geely Automobile Holdings Ltd. reported second-quarter profit growth as strong exports helped the automaker cope with weak demand in China, UNN writes, citing Bloomberg.
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The company also announced changes to its management team, including Li Shufu’s resignation as chairman. Li was appointed honorary chairman for life, allowing him to devote more time to his other businesses and assist with succession planning, the company said Monday. He will continue to serve as chairman of parent company Zhejiang Geely Holding Group, indicating that he will retain oversight of his sprawling automotive empire, the publication writes.
The announcement followed an earnings report showing that net profit rose 36% to 4.9 billion yuan ($727 million) for the three months ended June 30, in line with analysts’ expectations. First-half profit fell 1.8% to 9.09 billion yuan, although it exceeded estimates.
Geely Auto shares closed 4.8% higher in Hong Kong.
As growth slows in the domestic market, Geely is seeking to expand its presence overseas. The automaker said it raised its 2026 export target by 23% to 920,000 units.
This is based on a strong start to the year, with Geely’s exports more than doubling in the first half to 474,228 vehicles, according to an earlier company statement. Car sales in China fell 20% in the first six months, while the China Passenger Car Association forecasts a 14% decline for all of 2026.
Its brief lead over BYD Co. earlier this year has narrowed, as the world’s largest electric-vehicle maker benefited from demand driven by higher oil prices amid the war between the US and Iran. In the first six months of this year, its overseas sales exceeded 812,700 vehicles, nearly double Geely’s export volume.
Although Geely Auto also sells fully electric vehicles and hybrids, it has been slower than BYD to build an overseas distribution network and is only now catching up, the publication notes.
Nevertheless, Geely’s more premium offerings through its Zeekr sub-brand are also paying off. The luxury 9X SUV became a best-seller in China at a price of more than 500,000 yuan and lifted Geely’s average selling price per vehicle by 15,000 yuan to 112,000 yuan.
In July, the company reached an agreement to share capacity and produce vehicles at Ford Motor Co.’s underutilized plant in Valencia, Spain, and is set to begin local production of its compact EX5 crossover and subcompact EX2 hatchback, known in China as the Xingyuan model, through its joint venture with Renault SA in Brazil.
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