Geely Holding Group, a Chinese automotive giant, announced its ambitious target to sell over 5 million vehicles annually by 2027. This represents a significant increase of approximately 79% from the 2.79 million units sold in 2023. The company has already seen substantial growth in 2024, selling 3 million vehicles in the first 11 months, a 20% year-on-year increase.
Table Content:
Geely’s Strategy for Achieving Ambitious Sales Target
To achieve this ambitious goal, which could place Geely among the top 10 global automakers, the company plans to consolidate its diverse passenger car brands into two primary units: Geely Auto and Zeekr Technology. Geely Auto will focus on the mass market, while Zeekr Technology will cater to the premium segment. This strategic move aims to streamline operations and improve overall efficiency.
Furthermore, Geely Holding Group intends to enhance collaboration in research and development across its brands. This includes aligning efforts in seven key technology areas: architecture, smart driving, cockpits, and batteries. Previously, each brand operated with independent R&D teams, leading to redundant investments. By consolidating these efforts, Geely aims to optimize resource allocation and accelerate innovation.
Restructuring and Refocusing on Core Business
This ambitious sales target and restructuring initiative follows a series of strategic decisions by Geely Holding Group, under the leadership of billionaire Eric Li, to refocus on its core automotive business. In prior years, the company had diversified into sectors such as satellites, smartphones, and banking. However, beginning in September, Geely shifted its focus back to auto manufacturing.
A significant step in this restructuring process was the November announcement of the merger between Zeekr and Lynk & Co, two of Geely’s prominent brands. This merger marks the first major restructuring move in a broader overhaul planned for the automotive group. This consolidation aims to create a more streamlined and efficient organizational structure, enabling Geely to better compete in the rapidly evolving global automotive market.
Conclusion: Geely’s Drive for Global Automotive Leadership
Geely Holding Group’s ambitious target of selling 5 million vehicles annually by 2027, coupled with its brand consolidation and R&D alignment strategies, signals a strong commitment to growth and innovation in the automotive industry. These strategic initiatives position Geely to compete more effectively on a global scale and potentially secure a position among the world’s leading automakers. The success of this ambitious plan will depend on Geely’s ability to effectively execute its restructuring plans and capitalize on emerging market trends in the automotive sector.
