Geely Auto profit climbs as exports counter weak China demand
Geely has trailed BYD in setting up overseas distribution networks but has accelerated efforts to catch up.
Geely Automobile Holdings reported a 36% increase in profit for the second quarter, exceeding analysts' expectations. The company's net income reached 4.9 billion yuan (US$727 million) for the quarter ending June 30, matching Bloomberg's estimate. Revenue rose by 15% to 89.8 billion yuan during the same period.
Despite sluggish demand in China, exports played a crucial role in helping Geely navigate the economic challenges. The company's exports more than doubled in the first half, totaling 474,228 vehicles. This growth in international sales helped offset some of the slowdown in domestic car sales, which plummeted by 20% in the first six months. Industry forecasts predict a 14% contraction for all of 2026.
Geely's partnership with Ford Motor Company has the potential to boost its production capabilities. The two companies agreed to share capacity at Ford's underutilized Valencia plant in Spain, where Geely will begin producing its EX5 compact crossover and EX2 subcompact hatchback. Additionally, a joint venture with Renault SA in Brazil will see the launch of these vehicles through a local production line.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Geely Auto profit climbs as exports counter weak China demand freemalaysiatoday.com
- Asian markets trade mixed amid weak U.S. leads; China rebounds and Japan holds gains despite Q2 GDP miss seekingalpha.com
- Geely's Q2 profit grows 36% as exports increasingly power sales asia.nikkei.com
