Chinese company Geely Automobile Holdings will increase the proportion of its electric vehicle sales to 50% of total sales in 2023. With this, it aims to accelerate its transition to electric power amid falling demand for cars at essence. Currently, sales of pure electrics and plug-in hybrids account for more than 30%.
One in five vehicles sold by Geely in the first half were all-electric or hybrid, sales of which nearly quadrupled, compared with a 20% drop in sales of combustion engine vehicles, according to the company. Hangzhou-based Geely, the world’s most prominent Chinese automaker due to the group’s investments in Volvo Cars and Mercedes-Benz, posted a 35% drop in first-half net profit.
The company said its vehicle sales, which fell 9% in the first half in China, were below management’s expectations, citing COVID-19 restrictions and semiconductor shortages. Those challenges, along with intensifying competition and rising raw material and battery costs, would put pressure on sales through the end of 2022, he said.
China’s auto sector has been hit hard by the government’s efforts to combat COVID-19, with many areas, including the Shanghai Mall, subject to lockdowns of varying lengths. Authorities have tried incentives to boost demand, and the central government has halved the purchase tax to 5 percent for cars priced below 300,000 yuan ($45,000) and engines no more than 2.0 liters.
Geely reported a 29% increase in revenue in the six months to June to 58.18 billion yuan, thanks to better product pricing and an improved product mix that offset lower sales.
Geely is also looking to expand further in Southeast Asia and Europe. Its exports increased by 64% in the first half and accounted for 18% of total sales. Geely has previously said its total annual vehicle sales, including the Zeekr and Geometry electric vehicle brands, will reach 3.65 million units by 2025, more than 30% of which will be electrified.
Since the start of 2022, the company has focused not only on expanding its line of electrified products, but also on improving the intelligence of its products. In the first half of the year, the Geely Auto brand upgraded four of its models from a GEEA1.0 distributed control electronic architecture to a GEEA2.0 centralized domain electronic architecture, as well as supporting the latest Qualcomm vehicle chips. 8155. Additionally, OTA updates have improved the brand’s cockpit operating system by making the interface similar to the mobile phone experience. Advances in smart technologies have also helped improve the self-driving experience. Currently, the company is focusing on L2+ and L3 smart drives. In the first half of the year, the company’s overseas expansion accelerated significantly with export sales exceeding 88,000 units, up 64% year-on-year and accounting for 14.3 % of total company sales. Lynk & Co reached a new milestone in its European operations, delivering a total of 10,912 units to owners and subscribers in the first half, an increase of 3,986%. Geometry C was exported to Israel and quickly became the best-selling BEV in its segment.