What is Growth Strategy and Future Prospects of Geely Automobile Holdings Company?

Geely is expanding its global footprint by entering six emerging markets, including Australia, New Zealand, Indonesia, Vietnam, and Greece, in the first half of 2025. The company is also targeting established European markets like Poland, Italy, and the United Kingdom, alongside large-volume markets such as Brazil and South Africa. By the close of 2025, Geely aims to establish over 300 new overseas sales and service outlets, increasing its total global network to more than 1,100 locations.

A significant driver of Geely's growth strategy is its commitment to New Energy Vehicles (NEVs). The company's Galaxy NEV range is projected to achieve annual sales of 1 million vehicles in 2025. Geely plans to launch five new Galaxy models in 2025, comprising two SUVs and three sedans. Additionally, the company will introduce its fifth-generation methanol-electric hybrid vehicles to consumers in late 2025, offering flexibility with methanol, electricity, and gasoline fuel options.

Geely is optimizing resource integration by incorporating brands like LEVC and RADAR into its group structure. A notable development is Zeekr's acquisition of a controlling 51% stake in Lynk & Co in November 2024, a deal valued at 5.4 billion yuan (approximately 710 million euros). This move is intended to accelerate technological synergies, streamline product portfolios, and boost global sales volumes. Zeekr and Lynk & Co collectively target sales of 710,000 vehicles in 2025, with Lynk & Co planning two new model launches and aiming for 390,000 units in sales.

By late 2025, Proton's Tanjung Malim EV plant, an affiliate of Geely, is scheduled to commence local production. This initiative is expected to reduce costs and foster supply chain synergies within the ASEAN market, further supporting Geely's overall expansion plans and strengthening its presence in key regional economies.

Geely's core profits saw a significant increase of 52% in 2024, excluding one-time gains. This strong performance continued into Q1 2025, with net profit surging by 264% to RMB 5.67 billion, underscoring the effectiveness of its Geely growth strategy.

For 2025, Geely has set an ambitious annual sales target of 2.71 million units, a 25% increase from 2024. This includes 2 million units for the Geely brand, 320,000 for Zeekr, and 390,000 for Lynk & Co, reflecting its broad Geely expansion plans.

The company aims to sell 1.5 million NEVs in 2025, a substantial 69% increase over 2024. Geely's Galaxy NEV range alone targets 1 million sales in 2025, highlighting its focus on Geely electric vehicles.

In the first half of 2025, aggregate sales across all Geely Holding brands reached 946,627 units, a 31% year-on-year increase. NEV sales grew by 83% to 463,372 units, representing 49% of total sales. Geely Auto's first-half 2025 sales of 1.4 million units, a 47% increase, led to a revised annual sales target of 3 million units.

Geely's multi-tiered brand strategy enables it to target various market segments, from entry-level to premium electric vehicles. This diversification helps buffer against fluctuations in demand for specific vehicle types.

Establishing knock-down (KD) assembly plants in emerging markets like Indonesia and Vietnam helps mitigate tariff risks and build local brand affinity. This approach also supports Geely's expansion plans in these regions.

The integration of Lynk & Co into Zeekr's operations is a strategic move to streamline product portfolios and accelerate technology synergies. This aims to improve overall efficiency and cost-effectiveness.

Geely's efforts to adapt its growth strategy to the evolving automotive market, including the slowdown in EV sales growth, are crucial. The company is navigating consumer hesitations by focusing on value and innovation.