Camilla Jessen
As Volvo struggles with falling EV sales, sister brand Geely surges ahead.
Geely Auto, one of China’s leading automakers and the parent company of Volvo Cars, has posted a remarkable 259% jump in quarterly profits, fueled by soaring domestic sales — led by its hit electric vehicle, the XingYuan.
According to BestsellingCars, Geely’s sales are up 48% year-on-year, with the XingYuan EV now officially China’s best-selling car, knocking long-dominant rival BYD off the top spot.
Priced at under $8,300, the XingYuan’s affordability and growing popularity have played a key role in Geely’s surge.
In contrast, Volvo Cars, which is part of the broader Geely Holding Group, is currently facing declining demand and steep cost cuts, with plans to save $2.6 billion.
Volvo has pointed to weakened electric vehicle sales as a major factor behind the downturn.
Geely’s Winning Formula in China
Geely’s success story is built not only on price but also on a broad and appealing lineup.
In addition to the best-selling XingYuan, the Xingyue L, a petrol-powered SUV that shares tech with the Volvo XC60, has also proven popular. However, it’s electric and plug-in hybrid models that are driving most of the growth.
The company is now looking to capitalize on this momentum, with more EV models in the pipeline and a focus on consolidating its lead in the Chinese market — the world’s largest for cars.
Exports Lag Behind
Despite its domestic success, Geely faces challenges abroad, especially in Russia, where sales have plummeted due to political instability and import issues.
To compensate, the brand is launching a new push into Europe, with Poland as its first new target market.
Even with weak exports, Geely’s domestic dominance has been enough to lift its overall financial performance — a sharp contrast to competitors like BYD, which has now been overtaken in its home territory.