Geely's Ascent: A Strategic Leap Towards Profitability and Market Leadership

Geely Auto, a leading Chinese automaker, has announced strong financials and future plans. With significant growth in revenue and profits, Geely is poised to deepen its foray into new energy vehicles (NEVs) and expand globally.

Financial Milestones and Strategic Optimism

In 2023, Geely reported a record revenue of 179.2 billion Yuan, a 21% year-on-year increase, and a net profit of 5.308 billion Yuan, marking a 51% surge.

This success financially underscored its strategy towards NEVs that cemented Geely’s commitment to continue its current transformation path.

Sales Growth and Market Achievements

The volumes of Geely’s sales have risen steadily with a total of 1.6865 million vehicles sold exceeding the annual target of 1.65 million units, a nearly 18% increase. NEV sales hit a record high of 487,500 units, a 48% year-on-year growth, and overseas exports surged by 38% to 274,100 units.

Brand Development and Future Targets

Geely Galaxy series aiming at mid-to-high-end NEV markets were able to sell more than 110,000 cars within 9 months. Additionally, Lynk&Co brand experienced a year-on-year growth rate of 22% making it the fastest Chinese premium car brand to reach the one million mark. Zeekr, despite being in the red with a loss of 1.135 billion Yuan, improved from the previous year's loss of 2.039 billion Yuan and aims to break even in 2024.

Competitive Edge and Global Strategy

Management at Geely believes that they can surpass BYD and regain past glory soon, citing the company's capabilities in NEVs and intelligent vehicles, adaptability to market changes, commitment to value and ethics, advantages of Geely Group in artificial intelligence(AGI), map systems or navigation programs, and satellite-based technologies among other things.

Value-Driven Approach amidst Price Wars

In response to intensifying price competition, Geely emphasizes a value-oriented strategy over a price war. The organization concentrates on foundational strengths, long-termism, and quality to birth new products. Geely also records profits from its foreign ventures such as the joint venture with Renault and the Proton brand that bring positive contributions towards its investment earnings.

Summary - The Road Ahead for Geely

Geely is targeting a sales volume of 1.9 million vehicles by 2024 which represents year-on-year growth of 13%. The company started off well during the first months of 2024 indicating that it will achieve its objectives. Geely has a bright future ahead due to their well-adjusted approach towards fuel and NEVs as well as international expansion.