Just like any other carmaker, Geely has been hit hard by the COVID-19 pandemic. Net profit dropped by 43% year-on-year despite increasing its market share in China from 6.1% to 6.5%. The market share growth is even more impressive when you consider only Chinese carmakers, in which case Geely went from serving 15.3% of the TIV in 2019 to 17.9% this year.
The difficulties faced by Geely have forced them to revise their targets down by 6% in terms of their overall sales target. They are now expected to end the year having moved 1.32 million cars.
Amidst the pandemic, Geely has actually been rather proactive. Very early on, they made a commitment to outfit all of their vehicles with N95 air purifiers, which have found their way to some Proton vehicles. We’re not sure how effective this is against battling the virus, but hats off to them for going for that chance at some press coverage.
Here’s the press release with more.
PRESS RELEASE
Geely Automobile Holdings Limited (Group) (HK.0175), the Hong Kong-listed subsidiary of Geely Auto Group, released its interim results for the first half of 2020. During the period the Group’s revenue (excluding the revenue of the Group’s 50% owned joint venture, namely Lynk & Co joint venture) reached RMB 36.81 billion with a net profit of RMB 2.29 billion, down 23% and 43% YoY respectively.
As with all industries, Geely Auto Group’s performance was affected by the CoVid-19 epidemic in the first half of 2020 which resulted in a slowdown in global economic activity, and an unstable international trade situation. In the face of uncertainty, Geely Auto Group continued to nurture new opportunities and new growth points inline with consumer expectations.
Despite immense difficulties faced by the industry as a result of the CoVid-19 epidemic earlier in the year, the Group cumulative sales from January to June reached 530,446 units, ranking first among Chinese automakers. In spite of decreased Year-on-Year sales, the Geely Auto saw its wholesale market share in the overall Chinese market increase from 6.1% in 2019 to 6.5% in 2020 according to data from the China Association of Automobile Manufacturers. Among Chinese brands, Geely Auto market share increase was even more apparent rising from 15.3% in 2019 to 17.9% in 2020. At the same time, the Group’s profits have also become more diversified with Geely finance offerings becoming a new growth point in the first half. Net profits from Geely’s auto financing joint-venture with BNP Paribas, Genius AFC increased 82% Year-on-Year to RMB 423 million.
Setbacks in Q1 passed with positive year-on-year growth in Q2; May and June saw combined Geely Auto and Lynk & Co brand sales increase by 20% and 21% respectively year-on-year, showing a trend towards a strong recovery. However in the face of continued uncertainties in the near future, Geely Auto Group management have revised sales group 2020 full year target down 6% from 1.41 million to 1.32 million.
The Group’s parent company, Geely Holding Group’s strong commitment to R&D investment over the years has led to a strong foundation of core technologies in electrification, modular architectures, intelligent connectivity, and autonomous driving. In terms of Level 2 driver’s assistance adoption rate, the Group ranks first in China. In the first half of this year, Volvo, Polestar, and Lynk & Co reached an exclusive global strategic partnership with Waymo, the world leader in autonomous driving technologies.
Mr. An Conghui, President and CEO of Geely Auto Group said “In the face of constant change in the global automotive industry and the complex international trade situation, Geely Auto has always remained committed to independent R&D and improving the company’s innovative capabilities. In the second half of this year, Geely will continue to work hard, deepen reforms, focus on users, turn “challenges” into “opportunities,” and work towards increasing market share and healthy growth in a bid to create the best products and services for our Geely Auto Group users.”
