Geely Gains Ground on BYD as Chery Extends Export Lead

Geely is closing in on rival BYD, narrowing the sales gap in China’s fiercely-contested car market even as profits slipped in the first half of the year (1H 2025).

Revenue jumped 27% to CNY 150.3 billion (RM88 billion) in the six months through June, buoyed by a 47% surge in vehicle deliveries. That performance pushed Geely ahead of Volkswagen to become the second best-selling automaker in China, behind only BYD.

The pace of growth is clear. In July, the difference between Geely’s and BYD’s domestic deliveries was just 61,000 units—the smallest gap in about three years despite BYD’s overall sales climbing 33%.

Despite the sales momentum, Geely’s bottom line faltered. Net income slid 14% to CNY 9.3 billion (RM5.45 billion) after a change in accounting policy was applied retrospectively. 

Stripping out non-recurring gains and losses, profit attributable to equity holders came in at CNY 6.7 billion (RM3.92 billion), falling short of the CNY 7.6 billion (RM4.45 billion) analysts had expected.

Additionally, Geely is in the midst of streamlining its vast network of brands and operations. Part of that effort includes a plan to take US-listed premium EV marque Zeekr private. Zeekr had recently acquired Lynk & Co in a deal that included a partial payment of CNY 6.4 billion (RM3.74 billion) to Geely.

Export performance proved a weak spot. Overseas deliveries fell 8% to about 184,000 vehicles, hit by Russia’s higher import taxes and subdued consumer demand. Geely says it is working to diversify into new markets while expanding its sales channels and distribution network.

Chery’s export dominance stands in sharp contrast to Geely’s more modest overseas performance. In the first half of 2025, Chery shipped 544,937 vehicles to global markets, nearly three times Geely’s 184,000 units over the same period, cementing its dominance as China’s top vehicle exporter.

However, analysts are betting on a stronger second half, with fresh models including the Galaxy A7 hybrid sedan and Zeekr’s luxury hybrid 9X SUV expected to bolster sales. If Geely can sustain its momentum while lifting profitability, the race with BYD could become even tighter in the months ahead.

Source: The Edge