Chinese automaker Geely will launch new cars every month this year, more than 90% of which will be new energy vehicles, with the main goal of increasing the firm’s market share, domestic media outlet Cailian Press reported on January 19.
For the Geely brand, in addition to promoting the Panda mini in the first quarter of the year, the Leishen PHEV A + SUV and A-class sedan will be launched in the second and third quarters respectively. There will be a brand-new fuel-based car priced in the range of 100,000 yuan to 130,000 yuan ($14,737 – $19,159).
For Geely’s sub-brand Lynk & Co, a PHEV B-class SUV and a PHEV B-class sedan will be launched at the end of the third and fourth quarters respectively. Zeekr plans to launch a small pure electric A-class SUV in the first half of the year, and another B-class sedan will be released at the end of the year. In addition, Ruilan 7 will be unveiled.
“Geely’s strategy for Leishen PHEV will be different from that of last year,” an insider of Geely said frankly. “In 2023, Laishen PHEV products will have a brand new shape, naming method and sales channel, and a large B-class car is also planned to be launched in the fourth quarter.”
In 2022, the cumulative total sales volume of Geely reached 1,432,988 units, up about 8% year-on-year. Among them, the sales volume of passenger cars was 1.433 million units, a year-on-year increase of about 8%. In terms of new energy vehicles, with the breakthroughs of brands such as Geometry, Lynk & Co, Zeekr and Ruilan, the cumulative sales were 328,700 units, an increase of 219% year-on-year, boosting its new energy vehicles penetration rate to 23%.
It is worth noting that according to data from the China Passenger Car Association, the wholesale volume of new energy passenger cars in China in 2022 was 6.498 million units, up 96.3% year-on-year, and the penetration rate of new energy vehicles reached 27.6%, higher than Geely’s.
According to a report by Huachuang Securities, Geely’s current valuation is still at a relatively low level, and hybrid and pure electric new cars are expected to promote significant changes in the company’s development in 2023. “From 2022 to 2024, the net profit of Geely was 4.6 billion yuan, 6.8 billion yuan and 11.8 billion yuan respectively, and its profitability will improve significantly in the next two years,” Huachuang Securities predicted.
In terms of new energy vehicle transformation, Geely has now had a smooth experience. In 2015, the firm decided to achieve the goal of annual production and sales of 1.8 million new energy vehicles and 90% electrification rate in five years. Unfortunately, just over 60,000 new energy vehicles were sold in 2020.
In order to reverse the situation, Geely released the high-end pure electric vehicle brand Zeekr in 2021, and a goal to be achieved by 2025, showing that more than 25 new intelligent new energy products will be launched within five years. In 2025, the group expects to achieve a total sales volume of 3.65 million vehicles, gaining the largest market share and catching up with mainstream joint venture brands.