Home / China News / News detail

Geely to accomplish 2 million vehicle sales target ahead of schedule

Molly From Gasgoo| April 19 , 2018 20:29 BJT

Geely to accomplish 2 million vehicle sales target ahead of schedule

Shanghai (Gasgoo)- According to local media, Geely Auto may accomplish the annual sales target of 2 million vehicles one year in advance to 2019, Gui Shengyue, Geely Auto's CEO, said to Hong Kong stocks investors. In the meantime, he thought that it won’t take too long time for Geely Auto to attain the annual sales of 3 million units or 4 million units.

According to the data released by the China Association of Automobile Manufacturers (CAAM), China's vehicle deliveries in March were up 4.67% year on year to 2.6563 million units and the Q1 sales nationwide reached 7.183 million units, edging up 2.8% from a year ago.

In March, Geely Auto delivered a total of 121 thousand vehicles, soaring 38.8% over the previous year. Meanwhile, for the first three months this year, its cumulative sales had reached 386.3 thousand units with a year-on-year surge of 38.5%, ranking first among China's self-owned automakers.

Although the sales of Geely Auto were 126.7 thousand units less than the sales champion SAIC VW in the first quarter, its sales growth rate was 36.7 percentage points higher than that of SAIC VW. Gui Shengyue even said that Geely Auto has the potential to challenge VW and General Motors in China sales.

Gui attributed its outstanding sales performance to the technology improvement, shorter product development cycle and lower cost after Geely acquired Volvo Cars. Since Geely Auto took that step, its market shares have increased quickly from 10% to 15%.

Particularly, the cumulative deliveries of the Lynk & Co 01, the first SUV model of Sino-Swedish auto brand Lynk & Co, reached some 25 thousand units in the past four months. In March, 8,500 units of the Lynk & Co 01 were handed over, setting a new monthly sales record.

Gui Shengyue is optimistic about Lynk & Co's future and boldly predicted that the annual sales of Lynk & Co will reach 1 million units within a few years.

Reportedly, the orders of the Lynk & Co 01 have been up to 30 thousand units during a recent period. According to Lynk & Co's planning, the 02 model will hit the market in March this year and the 03 model, 01 PHEV (plug-in electric vehicle), 02 PHEV and 03 PHEV will be put into market in the second half of 2018. According to relevant reports, the models 04 to 09 have been under research and development, among which the 04 and 05 models are expected to go on sale in 2019.

Gui Shengyue showed that since product portfolios have become more and more rich, he has confidence in the accomplishment of 150 thousand units sales volume of Lynk & Co-branded models this year.

China will eliminate foreign ownership limits of passenger vehicle (PV) JVs and also remove the JV number limits of no more than two in 2022, according to the official news released by China's National Development and Reform Commission.

Gui Shengyue considered that the relaxation of JV ownership restriction will have effect on the sales of high-end models, while won’t affect Geely Auto a lot. He said the automakers from inland cities had already gained a foothold in mid- and low-end market. Thus, Geely can earn a considerable profit even from a RMB 70,000-to-RMB 80,000 model. However, it is very difficult for JVs.

Gasgoo not only offers timely news and profound insight about China auto industry, but also help with business connection and expansion for suppliers and purchasers via multiple channels and methods. Buyer service:buyer-support@gasgoo.comSeller Service:seller-support@gasgoo.com

All Rights Reserved. Do not reproduce, copy and use the editorial content without permission. Contact us: autonews@gasgoo.com