Geely: China’s auto industry faces challenges
China‘s auto industry faces great challenges, including the shift in demand from conventional vehicles to new energy vehicles, Geely noted.
Generally speaking, this Chinese company argued that intensified competition in China, rising commodity prices, other pandemic-related disruptions, and global chip supply shortages have shown no signs of abating and should continue to exert pressure on Geely’s sales performance and profitability in 2022.
Furthermore, Zeekr Holding is still at an earlier stage of development with high operating costs and limited revenue.
While Geely, a Hangzhou-based Chinese multinational auto company, is privately owned by Chinese billionaire business tycoon Li Shufu, Zeekr is a Chinese auto brand owned by Geely, founded in 2021 and specializing in electric cars.
In the longer term, the shift in demand from conventional vehicles to new energy vehicles and smart/connected vehicles and the scheduled easing of foreign investment in China’s auto industry over the next few years should pose additional challenges for Chinese automakers. passenger vehicles, according to Geely.
On the positive front, Geely maintained its leading position in China’s passenger car market.
Geely
According to its own narrative, this company’s financial position has been further strengthened as a result of strong operating cash flow generated in recent years and new capital funding obtained from some timely equity issuances.
These should allow the company to continue its investment for the future and quickly adapt to dynamic changes in the market.
In view of the huge challenges ahead, Geely says that it will continue to increase the share of new energy vehicles in its total sales volume by introducing more competitive products in this category.
In addition, the company should adhere to the core line of «Smart Geely 2025» strategy, which includes focusing on strategic products such as the China Star series of products, accelerating the design of new energy vehicles, accelerating the development of smart applications and improve the end user experience.
The company will also continue to enhance its product portfolio, with the goal of improving the overall profitability of that portfolio.
The number of new product offerings should remain at high levels in the coming years, providing enough momentum for Geely to sustain long-term growth.
The Group had almost completed the rebranding and restructuring of its distribution channels in its main export markets.
Localization of production to reduce costs and currency risk has yielded positive results in markets such as Malaysia.
