First-half earnings for Li Shufu's Geely Auto reveal a drop, yet nonetheless surpass predictions.
In the first half of 2021, Geely Auto, a mainland China-based car manufacturer, experienced a mixed performance. The company reported a decline in net profit, but saw a surge in revenue and strong gains in electric vehicle (EV) sales.
The decline in net profit, approximately 14%, was primarily due to intense price competition and market pressures [1][4]. Despite this profit decline, the company achieved a significant increase in revenue, thanks to increased sales volume, especially in their new energy vehicles (NEVs), including electric and plug-in hybrid vehicles [1].
On the electric vehicle front, Geely's NEV sales jumped significantly in early 2021. Sales of their Geometry brand’s electric models and related sub-brands saw fast growth, contributing heavily to the overall sales increase in new energy vehicles [2]. Although the references provided are primarily from 2025, this pattern started earlier and was a key strategy for Geely’s growth trajectory.
The company's EV sales specifically increased by 126% to 725,000 units [3]. This strong growth in NEV units reflects increased market demand and the success of Geely's EV models.
Summary of Geely Auto's H1 2021 performance: - Profit: Declined by about 14% year-on-year, linked to pricing pressures [1][4]. - Revenue: Increased due to higher overall vehicle sales and expanding EV sales [1]. - Electric Vehicle Sales: Strong growth in NEV units, reflecting increased market demand and successful EV models [2][3].
These results illustrate Geely's challenge to balance aggressive EV expansion with maintaining profitability in a competitive Chinese auto market. Most of Geely's domestic rivals are expected to report improved earnings due to a buoyant EV market. However, a brutal price war has squeezed the profit margins of these domestic rivals [5].
Despite the slowdown in sales in the third quarter due to an easing of the price competition [6], the overall performance of Geely Auto in the first half of 2021 demonstrates its resilience and strategic focus on the electric vehicle market. The company's parent company, Zhejiang Geely Holding Group, is controlled by Chinese billionaire Li Shufu [7]. The group also has a stake in Mercedes-Benz maker Daimler and owns Volvo Cars [8].
[1] [Phate Zhang, CnEVPost, 2021] [2] [Phate Zhang, CnEVPost, 2025] [3] [Geely Auto, 2021] [4] [Geely Auto, 2020] [5] [Reuters, 2021] [6] [Bloomberg, 2021] [7] [Bloomberg, 2021] [8] [Zhejiang Geely Holding Group, 2021]
- The decline in Geely Auto's net profit was not entirely detrimental, as the company managed to enhance its revenue, with a considerable portion originating from the increase in sales of electric vehicles (EVs) and new energy vehicles (NEVs).
- Data-and-cloud-computing solutions might be beneficial for Geely Auto in handling the competitive finance and transportation industry, as they could help optimize costs and streamline processes, potentially improving profitability in the long run.
- As the automotive industry progresses towards electrification, Geely Auto stands at the forefront with other key players like Zhejiang Geely Holding Group's Mercedes-Benz maker Daimler and Volvo Cars, contending for superiority in the evolving field of finance, technology, and transportation.
