Business · Companies · 21 hrs ago
Geely’s profits rise, but weak demand and trade barriers threaten growth
Geely’s profits rose 28% in the July-to-September quarter, but investors have not rewarded the Chinese carmaker.
Its shares have fallen 24% this year, and the company is valued below the average for a group of Chinese carmakers.
Geely has reshaped its business by bringing brands under a simpler corporate structure, helping lift its gross margin above 18% in 2026 from 16% in 2025.
It is China’s second-largest carmaker after BYD, and 60% of its cars sold this year were electric.
Demand for petrol cars in China has dropped sharply, while electric-car sales have also weakened; exports rose 169% from January to September, but new trade barriers could put that growth at risk.
Geely’s new chair, An Conghui, and chief executive, Gan Jiayue, are planning wider production and local manufacturing, including a plan to take over unused Ford production lines in Spain.
Geely Automobile reported a 28% rise in profits for July to September.
Its shares have fallen 24% this year, despite improvements to its business structure and gross margin.
Demand for mass-market petrol cars in China fell by a third in 2026, and the electric-car market also weakened.
Geely’s exports rose sharply, but trade barriers in major markets could threaten that growth.
The company’s new leadership is expanding its vehicle range and plans to acquire surplus Ford production lines in Spain.
- Who
- Geely Automobile, led by chairman An Conghui and CEO Gan Jiayue.
- What
- It reported higher profits, while weak demand and trade barriers threaten its growth.
- When
- Its profit increase covered July to September 2026; the article was published on October 31, 2026.
- Where
- China and international markets, including Spain.
- Why
- Demand for petrol cars in China fell, the electric-car market weakened, and trade barriers could limit export growth.
This story does not have two clearly opposing sides.
Li Shufu stepped down as chairman of Geely Auto’s listed subsidiary.
Geely’s exports rose 169% year on year.
Geely announced a 28% increase in profits for July to September.
- Profit increase
- 28% in July to September
- Share-price fall
- 24% this year
- Gross margin
- Above 18% in 2026, compared with 16% in 2025
- Exports
- Up 169% year on year from January to September
- Chinese petrol-car demand
- Fell by a third in 2026
- Geely Auto ownership
- Li Shufu owns 42%
What people are saying
stupid and redundant