- Geely Auto introduces most stringent Chinese State 6B emission standards ahead of time
- Electrified and new energy vehicle range continues to beat expectations
- China’s best-selling domestic brand well positioned for second half of 2019
2019 July 08, Hong Kong. Geely Automobile Holdings Limited (Group) announced that total sales volume of the Group (including the sales volume of LYNK & CO-branded vehicles sold by the Group’s 50%-owned joint venture) reached 651,680 units in the first six months of the year. In June, the Group sold 90,875 vehicles, an increase of 1% from the previous month. Of the total sales volume in June 2019, overseas exports reached 6,234 units. The sale of new energy vehicles reached 15,985 units in June 2019. The Group was first in cumulative sales in 2019 among Chinese brands and have completed 43% of its annual sales target of 1.51 million units. Exports in the first six months of the year reached 38,619 units, an increase of 343.95% from the same period last year. Cumulative sales of new energy vehicles reached 57,600 vehicles, an increase of 301.06% from the same period last year.
Factors such as global trade friction, the premature switch from Chinese State Five Emissions to Chinese State six emission standards, and the reduction in new energy vehicle subsidies have affected the Group’s performance in the first half of 2019. However, the Group has proactively moved to introduce the most stringent emission standard, China State 6B, ahead of its competitors which are still majority using Chinese State 6A. In the second half of 2019 Geely Auto will also introduce updated versions of its best-selling models such as the Bo Yue SUV which will help to spur growth in the second half.
In the first half of the year, the total sales volume of Geely Auto brand SUVs reached 365,389 units, 56% of the Group’s total sales, furthering Geely Auto’s position as the leading Chinese SUV manufacturer. Among them, the high-powered smart SUV, Coolray sold 10,786 units in June and 69,051 units in the first half of the year.
In the sedan market, Geely Auto’s various models continued to maintain their leads. A segment champions include Binray models which sold 5,180 units in June and 42,767 units in the first half of the year.
Driven by technology and quality. Building core strength through “high quality development”
As China’s domestic automotive market environment enters a downturn, the Group continues to adhere to “high quality development” with a focus on technology and brand building as a means of resisting the uncertainty of the market and various policies and inject confidence into Chinese brands. While maintaining steady growth in market share, the Group has continued to upgrade its product matrix to offer users higher quality and higher value products and experiences. The Group’s consumer base has continued to expand and have seen its average selling price and brand value increase.
According to the latest statistics in the first five months of 2019, the Group achieved a market share of 6.68%, higher than the 6.3% in the same period last year. The Group has continued to outperform the market. In the first half of the year, the Group’s products priced above 80,000 RMB accounted for 80% of its sales and sales in first and second tier cities exceeded 50%. For the second half of 2019, the Group has put forth a development strategy with a focus on stability, increasing market share, and improving operation quality. With greater uncertainty in the Chinese automotive market environment, the Group’s management team has revised downward its 2019 full year sales volume target by 10% from 1,510,000 units to 1,360,000 units.
Presently, the Group has basically completed the clearing its inventory of Chinese State 5 emission models and implemented Chinese State 6B standards. Dealership inventory of State 5 vehicles has also been reduced to zero in regions where State 6 is mandated with overall dealership inventory brought to low levels across the Chinese market.
With the continuous development of new models and the launch of new models such as Azkarra, the Group will further strengthen consumer confidence in its brand, technology, products, and culture. The Group is set to continue increasing its market share and lead China as the industry moves towards to higher end of the global value chain.