Geely Automobile Sees 15% Revenue Increase Amid 1% Unit Growth and $2,224 Surge in Average Selling Price

Key Takeaways

Geely Automobile reported $25.74 billion in revenue for H1 2026, a 15% increase despite only 1% growth in vehicle sales.
Sales of new-energy vehicles surged by 10% and accounted for over 56% of the total volume, with premium brand ZEEKR growing by nearly 97%.
Geely’s profitability improved, with a gross margin of 17.9%, but reported profit decreased 1.8% due to foreign exchange losses.

Revenue Growth Amid Changing Market Dynamics

Geely Automobile generated approximately $25.74 billion in revenue in the first half of 2026, reflecting a 15% increase, even as total vehicle sales rose only 1% to a record 1,422,958 units. This modest growth in volume was largely attributed to a shift toward premium and new-energy vehicles, which boosted the average selling price by about $2,224 to $16,609 per vehicle.

Sales of new-energy vehicles reached 799,454 units, marking a 10% increase and comprising 56.2% of total sales. Plug-in hybrid vehicles showed remarkable performance, increasing by 57.7%. ZEEKR, Geely’s premium brand, exhibited significant growth as well, with sales jumping 97% to 178,370 vehicles during the same period. The ZEEKR 9X model emerged as the best-selling vehicle in its price bracket in China, highlighting a notable premiumization trend in Geely’s offerings.

International sales played a crucial role in reshaping Geely’s market strategy, with export volumes soaring by 158% to 474,228 vehicles, accounting for nearly one-third of total company sales. Exports of new-energy vehicles skyrocketed by 585% to 277,189 units, demonstrating the brand’s increasing global footprint. Monthly exports surpassed 100,000 vehicles for the first time in June.

The richer product mix has enhanced profitability despite challenges from rising raw-material costs and stiff competition in the automotive sector. Gross margin expanded by 1.6 percentage points to 17.9%, aided by stronger sales of higher-margin premium and export products, coupled with effective cost controls.

However, reported profit attributable to owners declined by 1.8% to around $1.35 billion, influenced by a marked foreign exchange loss of approximately $81.6 million, contrasting with a previous year’s gain of $391.5 million. When these factors are excluded, core profit saw a substantial increase of 46%, ascending to about $1.44 billion.

Cash generation remains robust, with Geely reporting roughly $2.95 billion in net cash from operating activities. The company invested about $1.17 billion in capital expenditures aimed at enhancing new-energy products and technology development. Funding reserves have grown to approximately $10.32 billion, while bank borrowings have reduced by 52%.

Geely also undertook a share repurchase program, acquiring 108.2 million shares for roughly $252.1 million in the first half, alongside issuing about $296.6 million in bonds and repaying $1.75 billion in bank debts.

Looking ahead, Geely aims to sell 3.45 million vehicles in 2026, with plans for expanded product launches, international growth, and enhanced manufacturing capabilities under its One Geely strategy, emphasizing globalization and intelligent vehicle technology.

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