Geely challenges BYD for leadership in China

Geely Automobile has officially declared war on BYD's leadership in China, aiming to become the top carmaker by sales in the country by 2026. The announcement came during the presentation of the Group's 2025 financial results, a year in which it posted a record net profit of 16.85 billion yuan (about $2.4 billion) and surpassed the 3 million vehicle sales mark for the first time. The strategy for 2026 includes a global sales target of 3.45 million units, with a strong push towards new energy vehicles (NEVs), which are expected to account for 2.2 million of the total. Geely has already 'flexed its muscles' in the first two months of the year, managing to overtake BYD in monthly sales, taking advantage of a temporary slowdown by its rival due to the remodelling of tax incentives on BEVs. Geely's strength lies in its hybrid approach: while BYD relies exclusively on NEVs, Geely maintains a solid and profitable market share in internal combustion vehicles, which serve as a financial cushion to finance expansion into electrics.

To achieve supremacy, Geely is relying on three pillars: product offensive with the launch of the Galaxy brand for the mid-range and the acceleration of premium brands Zeekr and Lynk & Co; global expansion with an export target of 640,000 units, exploiting synergies with Volvo to enter the European and South-East Asian markets; and technology leadership through the introduction of advanced autonomous driving systems (G-ASD) and new solid-state batteries to close the technology gap with competitors. Despite the optimism, the challenge remains daunting: BYD maintains a production capacity and scale of vertical integration that guarantee it superior margins. However, diversification of Geely's portfolio seems to be the most effective weapon at the moment to disrupt the dominance of the 'queen of electrics' in the world's most competitive market.