Geely Outperforms Expectations in H1 2025 Amid Price War and Regulatory Pressures

[PCauto] Geely Automobile Holdings Ltd. 2025 H1 earnings report shows that despite industry price wars and regulatory pressure, the company achieved strong growth through strategic adjustments and its advantage in new energy vehicles.

According to the financial results released on August 14, Geely posted a net profit of RMB 9.29 billion (MYR 5.46 billion) in the first half of the year, down 14% year-on-year mainly due to changes in accounting policies. However, this figure far exceeded analysts’ expectations of RMB 7.6 billion (MYR 4.46 billion). Excluding one-off items, core net profit surged 102% year-on-year to RMB 6.66 billion (MYR 3.87 billion).

Meanwhile, revenue rose 27% year-on-year to RMB 150.3 billion (MYR 88.34 billion), hitting a record high, with gross margin improving to 16.4% and total gross profit reaching RMB 24.7 billion (MYR 14.52 billion).

Significant Sales Growth in the First Half of 2025

The company delivered 1.409 million vehicles in H1, up 47% year-on-year, with its market share surpassing 10% for the first time. Among them, NEV sales reached 725,000 units, a surge of 126%, pushing the NEV penetration rate to 51.5%. Global markets also made a strong contribution, with exports exceeding 180,000 units across 85 countries and regions.

This growth was driven by robust EV demand from Chinese consumers and supportive government subsidies. According to data from the China Passenger Car Association, total passenger vehicle sales in China reached 13.3 million units in H1, up 12.2% year-on-year, while NEV sales hit 546,800 units, growing 33.3%.

However, the industry as a whole remains under pressure from a price war. The average discount rate climbed to 17.4% in June before easing slightly to 16.7% in July, which may reflect the initial impact of regulatory intervention by the Chinese government.

Enhanced Operational Efficiency Through Its “One Geely” Strategy

The “One Geely” approach drives internal resource integration and efficient collaboration. In terms of brand development roadmap, Geely has merged GEOME and LEVC into Geely Galaxy, while Zeekr acquired LYNK&CO. Later, Zeekr and Geely Auto also signed a merger agreement, resulting in a brand portfolio with differentiated positioning: Geely Galaxy, Zeekr, and LYNK&CO. For instance, Zeekr focuses on premium technology, while LYNK&CO emphasizes trendy and individualistic design.

Chairman Li Shufu stressed that Geely will not engage in a price war, but rather focus on technology and quality. This strategy has helped narrow the gap with BYD, with the sales difference in July reduced to 61,000 units — the lowest level in three years.

Expected to Sustain Its Growth Momentum

Although industry challenges remain — with price wars eroding overall profitability and the Chinese government closely monitoring pricing practices (violators facing potential fines) — market demand in China may soften in Q3.

Even so, Geely has raised its full-year sales target from 2.71 million to 3 million units. New models, including the Zeekr 9X luxury hybrid SUV and the Galaxy A7 hybrid sedan, are set to hit the market this year, further boosting the company’s brand performance and sales.