Geely Profit Climbs as Overseas Sales Offset Slowing China Demand — Update

By Jiahui Huang

Geely Automobile, China's No. 2 electric-vehicle maker, reported a rise in third-quarter profit as a surge in exports helped counter flagging sales in the world's largest auto market.

The solid results come as the Hangzhou-based automaker has experienced robust demand in overseas markets, where it has been expanding its presence to diversify revenue sources and offset slowing domestic demand.

Geely, one of the largest carmakers in the world by sales, has also stepped up efforts to solidify its position in the new-energy-vehicle sector, which includes plug-in hybrids and fully electric vehicles, targeting different customer segments through its Galaxy, Zeekr and Lynk & Co brands.

For the three months ended September, net profit climbed 28% to 4.84 billion yuan, equivalent to $726 million, Geely said Thursday. Revenue rose 10% to 98.96 billion yuan.

The Chinese carmaker sold 812,523 vehicles during the period, a 6.8% increase from the previous year, supported by robust growth in overseas deliveries.

Exports more than doubled to 323,442 units, accounting for about 40% of total sales. That was a step up from the roughly one-third share held by overseas sales at the end of June.

Citi analysts said Geely's gross margin was steady at 18% in the third quarter, in line with consensus, as strong export growth largely offset lower shipments of the 9X, Zeekr's luxury hybrid sport-utility vehicle.

A potential headwind for margins next year is China's plan to lower the value-added tax export rebate for NEVs to 9% from 13%, though local production in overseas markets could help the Chinese EV maker overcome that.

Geely has stepped up its push into Europe, recently entering a manufacturing partnership with Ford. The Chinese automaker will build two electric SUVs at Ford's factory in Spain, and the two companies will jointly develop a new model.

The Chinese carmaker also plans an expansion to Canada next year, and has begun establishing a retail and service network in the country.

Geely's shares fell more than 4% after the results, reversing early gains. The stock has shed nearly a quarter of its value this year.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

October 29, 2026 04:07 ET (08:07 GMT)