The Chinese holding company Geely posted a sharp rise in first-quarter profit. Record sales and cost controls helped the automaker tighten its grip on its fast-moving domestic market. But in the near future, the Chinese car group, which owns Volvo, Polestar, and others, will face mounting export pressures and, consequently, push for a corporate restructuring.
The Hong Kong-listed company, a core pillar of billionaire Li Shufu’s expansive automotive empire, said net income surged to 5.67 billion yuan (€702 million) in the first three months of the year, more than triple the 1.56 billion yuan (€193 million) recorded a year earlier. Revenue jumped 25 percent to 72.5 billion yuan (€8.9 billion), buoyed by strong demand for electric and hybrid models in China.
Tougher conditions abroad
Geely attributed the performance to “record-high sales” and “significant scale effects,” with the group noting gains across its new energy vehicle (NEV) business. Deliveries in China, still the world’s largest auto market, rose 48%, powered by the popularity of models like the Xingyuan electric hatchback and Xingyue L SUV.
Despite its domestic momentum, Geely is grappling with more challenging conditions abroad. Export growth slowed to just 2% year-over-year in Q1, a stark contrast to the 66% increase seen during the same period last year. The downturn reflects growing headwinds from EU tariffs on Chinese EVs, higher import taxes, and deteriorating consumer sentiment in key markets like Russia, where Geely has been among the top-selling brands.
Geely is also undergoing a thorough corporate realignment and leadership reshuffle. Earlier this month, the automaker launched a proposal to privatize Zeekr, its premium EV brand, and an intention to delist from the NY stock exchange just a year after its debut.
If accepted, the deal signals Li’s push to streamline operations across his sprawling automotive portfolio. Earlier, he moved Lynk&Co under the reign of Zeekr, merged Lotus’ Chinese and British divisions, and replaced the CEOs of Polestar and Volvo. The path to success is winding.
Promotion for Zeekr boss
Speaking at an earnings briefing, senior Geely Auto executive Gui Shengyue emphasized the urgency of reform. “Time waits for no one,” he said. “Given the conditions of China’s auto market, for Geely Auto, there is no room for error.”
Zeekr, meanwhile, reported a narrowed Q1 net loss of 718 million yuan—a 63% improvement from the year prior, on an essentially flat revenue of 22 billion yuan. The results mark the first quarter since Zeekr’s full integration with connected car brand Lynk & Co.
“The two brands’ initial technological consolidation has already boosted profitability through optimized R&D and shared platforms,” Zeekr CEO Andy An said. An is also set to lead the parent company (Zhejiang Geely Holding Group) after the Zeekr buyout.
