Geely Automobile posted a net income of 5.67 billion yuan (US$786 million) in Q1 2025, over three times higher than the same period last year.

Revenue rose by 25% year-on-year to 72.5 billion yuan (US$10 billion), supported by strong sales and growth in new energy vehicles.

Geely plans to take its premium EV brand Zeekr private at a US$6.4 billion valuation after merging it with Lynk & Co.

Zeekr’s Q1 net loss narrowed by 63% year-on-year to 718 million yuan (US$99.6 million), with revenue nearly flat at 22 billion yuan (US$3 billion).

Domestic sales surged 48%, while export growth slowed due to EU tariffs and weak demand in Russia, and Geely reported 11.3 billion yuan (US$1.5 billion) in net current liabilities.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Geely’s decade-long transformation from budget automaker to technology-driven powerhouse

Geely’s record profits reflect a strategic transformation that began when the company entered the automotive industry in 1997, evolving from a budget brand to a technology-focused enterprise 1.

This shift is evident in the company’s Fortune Global 500 ranking, where it has appeared for 13 consecutive years and now sits at position 185, demonstrating its significant scale and global impact 1.

The company’s heavy investment in research and development, employing over 30,000 R&D personnel worldwide and securing more than 14,000 patents, has enabled its technological leap forward 1.

Geely’s strategic focus on both electric vehicles and traditional combustion engines has proven successful, with its Xingyuan model becoming China’s top-selling vehicle and contributing significantly to its 48% domestic delivery growth in Q1 2.

This transformation is particularly impressive considering the company’s humble beginnings, with its revenue now projected to reach approximately 240 billion RMB in 2024, representing dramatic growth from the 92.7 billion RMB reported in 2017 3, 4.

2️⃣ Chinese automakers gaining unprecedented domestic dominance

Geely’s strong performance is part of a broader trend where Chinese brands have achieved a record 69.4% share of their domestic passenger vehicle market by early 2025, dramatically reversing the historical dominance of foreign automakers 2.

In a significant market shift, Geely has surpassed Toyota in internal combustion engine vehicle sales in China, demonstrating how domestic brands are winning in both traditional and electric vehicle segments 2.