Gasgoo Munich- How can Geely crack global markets without building its own factories?
"Capacity is no different. Our global capacity involves cooperation with others, not building new facilities ourselves." That was Li Shufu, chairman of Geely Holding Group, speaking in October at the 2026 World Intelligent Connected Vehicle Conference about the company's overseas strategy. Buying land, erecting plants, and equipping and staffing them requires massive capital. Geely aims to leverage existing production capacity and grow alongside partners instead.
This strategy is already taking shape in specific projects. Geely is partnering with Ford to utilize its Valencia plant in Spain. It is working with Renault on localized production in Brazil, and integrating local manufacturing resources through ventures like Proton and Renault Korea.
Mirroring this strategy is a rapid surge in export volume. Sales figures released on November 1 show that Geely Auto exported 904,823 units in the first ten months of 2026. This marks a 168% jump from a year ago, already surpassing its total exports for all of 2025.
As export growth and overseas capacity expansion advance in parallel, two distinct production and sales systems are emerging. How is Geely leveraging the factories, brands, and channels of global peers to penetrate international markets? And how much support can this model actually sustain for its export boom?
Different Markets, Different Entry Strategies
Geely's global footprint cannot be neatly categorized as simply building plants or buying assets. The partners and entry methods vary by market. Consequently, the resources Geely integrates differ from region to region.
In Europe, Geely has gradually built its brand and sales network through acquisitions and channel partnerships. In Southeast Asia, Proton provided a local brand, manufacturing base, and regional market foundation. In South Korea and Brazil, Geely is entering markets by partnering with Renault to tap into local R&D, production, and sales systems.
The common thread across these partnerships is a focus on maximizing existing local industrial resources to minimize the cost of building from scratch.
Europe was an early focus. In 2010, Geely acquired Volvo Cars, securing a critical entry point into the European automotive ecosystem. Since then, Geely has used Lynk & Co to gradually explore the continent.
When Lynk & Co first arrived in Europe, it relied on subscriptions and company-owned stores in prime retail districts, aiming to build brand awareness through a novel sales model. As the business evolved, however, the costs and expansion limits of the direct-sales model became apparent. Lynk & Co subsequently shifted toward a dealer network, leveraging local partners to broaden its sales and service coverage.
By 2025, Lynk & Co had established 125 retail outlets in Europe, with 80 operational. By September 2026, that retail network had expanded to over 140 locations.
Channel partnerships are deepening further. In September 2026, Volvo and Lynk & Co struck a deal. Starting January 2027, Volvo will act as the exclusive distributor for Lynk & Co in Europe, handling local commercial operations and dealership activities. Lynk & Co retains control over product design, R&D, certification, and brand strategy.
The value of this partnership lies in Lynk & Co's ability to leverage Volvo's established sales and service network, cutting the time and capital needed for channel development. For Volvo, expanding its dealership business boosts the utilization of its existing network. However, this synergy shouldn't be misinterpreted as every brand under Geely gaining access to Volvo's sales channels. The Geely brand itself is pursuing an independent European rollout, with models like the E5 and Starray EM-i entering markets including Spain, Germany, the Netherlands, Belgium, and Luxembourg.
Collaboration on the production front takes a different form.
In July 2026, Geely and Ford established a joint venture in Spain to jointly utilize production resources at Ford's Valencia plant. Ford holds a 66% stake in the venture, with Geely owning 34%. The facility has a potential annual capacity of 500,000 units, with the first models scheduled to roll off the line in 2028.
Image Source: Geely
Through the joint venture's governance and production scheduling, both sides can coordinate resources. For Geely, leveraging an existing plant to enter the European manufacturing system reduces the upfront capital expenditure of building new facilities. It also offers a chance to shorten the lead time for localized production.
In Southeast Asia, the foundation for cooperation lies with Proton.
In 2017, Geely acquired a 49.9% stake in Proton, becoming a major shareholder. Proton's local brand recognition, manufacturing infrastructure, and dealership network provided a crucial pivot for Geely's entry into the Southeast Asian market.
The partnership has gradually evolved from equity ties to product and manufacturing collaboration. In September 2025, Proton officially unveiled a dedicated electric vehicle plant in Tanjung Malim. Initial capacity stands at 20,000 units, with plans to expand to a maximum of 45,000. The e.MAS 7 is the first model to roll off the assembly line, followed by the e.MAS 5.
Notably, the Proton e.MAS 7 shares the same platform as the Geely Galaxy E5 — essentially "sibling" models — though it has been adapted to meet local market demands in Malaysia.
Image Source: Geely
This facility provides Proton with local manufacturing capabilities for its electrification transition, while also reserving space to accommodate models from other brands within the Geely group.
Proton has already begun cross-border exports to expand regionally. In late 2024, the first batch of 200 left-hand-drive Proton X50s were exported to Vietnam. Based on the same platform as the Geely Binyue, the vehicle entered the local market under the Proton badge, illustrating Geely's strategy of regional operations through local brands. In 2025, exports of Geely-branded models to Vietnam topped 1,000 units.
In South Korea, the collaboration focuses more heavily on technology and product development.
In 2022, Geely acquired a 34.02% stake in Renault Korea for approximately 1.376 billion yuan. The partnership centers on the CMA architecture and hybrid technology, with Geely providing technical support. Renault Korea leverages its local R&D team for model development while managing branding, production, and sales.
The Grand Koleos, launched in 2024, is the flagship product of this collaboration. Leveraging Renault's established brand recognition, manufacturing infrastructure, and sales network in South Korea, the new model quickly gained traction. Geely's annual report reveals cumulative sales of approximately 22,000 units for the model since its Korean launch.
Such partnerships allow Geely to combine its technology platforms with the market resources of local automakers. By selling vehicles under the Renault badge and relying on Renault Korea's existing systems for R&D and production, Geely gains a foothold in the local competitive landscape.
In Brazil, the partnership with Renault extends further into equity and manufacturing.
In November 2025, Geely acquired a 26.4% stake in Renault Brazil, though Renault remains the controlling shareholder. The companies announced a long-term partnership in Brazil. Geely plans to invest 3.8 billion reais to utilize Renault's existing plants and industrial resources for localized production. In September 2026, the first Geely EX5 EM-i rolled off the line at Renault's industrial complex in Curitiba.
Unlike the South Korean collaboration, which focused on technology and model development, the Brazil project integrates equity ties, factory resources, and local production more tightly. Geely can leverage Renault's local manufacturing base and market network to drive its business, while Renault gains access to new products and investment resources.
From Europe to Southeast Asia, and on to South Korea and Brazil, Geely's approach varies. Some partnerships prioritize channels, others manufacturing, some center on technology and product development, and others integrate local industrial resources through equity stakes. Together, these projects form a collaborative network underpinning Geely's global layout.
Export Growth: Geely Opens Markets Across Multiple Regions
The expansion of this overseas partnership network is happening in lockstep with Geely's surging export volume.
In the first ten months of 2026, Geely Auto exported 905,000 vehicles — a 168% year-over-year increase. October alone saw 107,000 units shipped, marking the fifth consecutive month above the 100,000 mark. Compared with the full-year total for 2025, Geely has already surpassed its previous export performance in just ten months.
In terms of regional distribution, Geely's export growth is unfolding simultaneously across multiple markets.
In the first three quarters, Geely exported over 140,000 vehicles to the Pan-European market — a 298% surge. Shipments to ASEAN exceeded 170,000, up 145%. Latin America and Africa topped 180,000, climbing 236%. Eastern Europe surpassed 170,000, up 114%. The Middle East and other Asia-Pacific markets exceeded 110,000, a 126% increase.
All five regions posted double-digit growth, with several exceeding 100%. This indicates that Geely's export growth is no longer concentrated in just a few markets; Europe, ASEAN, and Latin America are all contributing significant momentum.
The product mix is shifting as well. In the first three quarters of 2026, Geely exported 484,000 new energy vehicles, accounting for 61% of total exports. New energy models have become a critical component of the export business.
The performance in the UK offers a concrete snapshot of the Geely brand's expansion speed.
Since entering the UK market, the Geely brand has seen rapid sales traction. According to company data, cumulative registrations in the UK surpassed 10,000 units by October 2026, with single-month registrations exceeding 5,000 in September. It took less than a year from market entry to reach that level of volume.
Growth in the UK stems from strong product competitiveness and pricing, but also from gradual improvements in local channels, brand promotion, and the dealer network. For a new market entrant, generating initial buzz is just the beginning; sustaining sales requires a stable network and service capabilities.
Market growth is also creating new supply pressures.
In Brazil, order growth for certain Geely models has outpaced supply capacity, creating a backlog of roughly 20,000 to 30,000 orders. This signals that market demand is placing higher demands on production and supply chains. For Geely, the challenge now is to stabilize deliveries and shorten transport cycles. It must also build more responsive supply capabilities in high-growth regions as its export volume expands.
"In the first three quarters of 2026, China's passenger vehicle exports reached 7.16 million units, up more than 70% year-over-year. Domestic sales fell nearly 30% over the same period," says Chen Weiwei, an analyst at Gasgoo Automotive Research Institute. "Chery, BYD, Geely, and SAIC accounted for two-thirds of that export growth."
Chinese automotive exports are still growing, but competition is intensifying. For a top-tier automaker like Geely, sustaining export growth requires continuous product supply and channel investment. It also requires adjustments to production and logistics based on regional demand shifts. Relying solely on expanding output from Chinese factories can support a rapid start, but it is difficult to sustain long-term operations across all overseas markets without a local presence.
Asset-Light Expansion: A Test of Global Resource Integration
Geely's choice to partner with local companies and share factories, channels, and supply chain resources is closely tied to the current capacity environment of the global auto industry.
Over the past decade, global automakers have aggressively expanded capacity. As the industry shifts to electrification and market demand evolves, some traditional plants are suffering from underutilization. For Chinese automakers looking to enter overseas markets, acquiring or utilizing existing factories is often more efficient than building new ones from the ground up.
Geely Auto told Gasgoo that to better meet sustained market demand, "we are actively studying and exploring various capacity expansion plans, aiming to maximize the use of surplus capacity globally rather than building new plants or expanding existing ones."
The partnership at Ford's Valencia plant exemplifies this approach. Geely can utilize existing local production facilities and industrial support. This reduces upfront capital expenditure on land, buildings, and equipment, while avoiding the long construction cycles required for new factories.
However, sharing capacity does not automatically lower overseas production costs. Local manufacturing costs in Europe are typically higher than in China; estimates suggest European production costs could be 70% to 100% higher than domestic levels. Labor, energy, supply chains, and compliance costs all weigh on the final manufacturing cost.
Therefore, borrowing a local factory is just the first step. The company must still tackle challenges related to parts supply, production efficiency, quality control, and scaled operations. Only when vehicle sales reach a certain volume and factory capacity is effectively utilized can local production achieve stable economics.
Partnership models also impose new demands on production organization and operational management.
With self-built plants, automakers can directly dictate capacity planning, production pacing, and supply chain arrangements. Partnering with local companies, however, requires aligning interests across equity structures, decision-making mechanisms, and daily operations. Ford's 66% stake in the Valencia joint venture means Geely must navigate production scheduling through the JV's governance structure; it cannot simply allocate the plant's entire capacity based on its own needs.
Similar issues exist in other partnerships. Partners bring local production licenses, workforce, supply chains, and sales networks. Yet both sides may not see eye-to-eye on product planning, investment pacing, cost control, or market strategy. The sustainability of these partnerships ultimately depends on whether stable mechanisms for profit distribution and decision-making can be established.
Geely's overseas investments over the past decade have accumulated valuable experience for these collaborations. From acquiring Volvo to investing in Proton and Lotus, Geely has gradually gained exposure to diverse corporate management systems, R&D processes, and market environments.
Yet cross-border mergers and capacity sharing remain distinct operational challenges. M&A requires integrating corporate cultures, organizational structures, and business strategies. Capacity sharing, on the other hand, tests the ability to synchronize production planning, quality standards, supply chain procurement, and cost accounting. Geely must define its rights and responsibilities within these partnerships while ensuring that product development, production quality, and delivery standards are met.
After-sales service is another critical piece of the puzzle.
While local partners can provide dealer networks and repair resources, Chinese automakers remain responsible for the user experience. Parts supply, technician training, warranty policies, software updates, and complaint handling all influence a brand's long-term performance overseas. This is especially true for smart electric vehicles, where software features and connectivity services are constantly updated. This requires an after-sales system capable of supporting continuous vehicle upgrades and fault diagnosis.
This is a lesson Geely must learn as it transitions from exporting to localized operations. Delivering a car to an overseas market is only the final step of product delivery. To ensure users continue to drive and choose the brand again, the brand, channels, after-sales service, and supply chain must operate in unison.
Judging by its current layout, Geely is attempting to organize existing overseas factories, brands, channels, and supply chain resources to reduce redundant investment in global expansion. The use of different partnership models in different markets also illustrates that global operations cannot rely on a one-size-fits-all approach.
Exporting over 900,000 vehicles in the first ten months proves that Geely's overseas expansion has reached scale. Yet, how far this global network can go depends on whether those overseas factories, channels, and partners can translate into stable production efficiency, delivery capabilities, and customer service.
