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China’s Geely Automotive (OTC:GELLY), which owns renowned brands including Volvo, Polestar, and Lotus, as well as regional names such as Proton and Zeekr, reported a substantial 575% increase in profits for the first half of the year. The company's revenue reached RMB 107.305 billion, marking a significant 46.6% increase from the previous year. Net profit soared to RMB 10.598 billion.
These gains come despite recent tariff increases imposed by the US and European Union on Chinese electric vehicles (EVs). In May, the US introduced 100% import duties on Chinese EVs, followed by the EU’s tariff hikes in June, both aimed at protecting local automotive industries from more affordable Chinese imports.
In response to these challenges, Geely is adapting its strategy by shifting production closer to key markets. The company is increasing its investment in manufacturing facilities in Belgium and South Carolina to mitigate the impact of the tariffs.
During the first half of 2024, Geely delivered 955,730 vehicles, a 41% increase compared to the same period last year. Notably, sales outside China hit 197,428 vehicles, representing a remarkable 67% growth and setting a new record for the company. This strong international performance has led Geely to revise its annual export sales target upward from 330,000 to 380,000 vehicles.
Steve Clayton, head of equity funds at Hargreaves Lansdown, noted that while Tesla has struggled to generate significant profits from its EV operations, Geely Automotive has successfully navigated these challenges. This success underscores Geely’s ability to adapt and thrive in a competitive global market, demonstrating resilience and effective strategic responses to external pressures.
