Geely Auto Revenue Hits Record as Overseas Sales Surge in H1 2026

Geely Auto (HKEX: 0175) delivered record first-half revenue as a sharp increase in overseas sales helped offset weaker domestic demand, although lower foreign-exchange gains reduced reported net profit. The Chinese automaker said in a Monday filing that revenue climbed 15% year-on-year to 173.6 billion yuan ($25.58 billion), extending its annual growth streak to six consecutive years. Gross profit increased 25.7% to 31.15 billion yuan, while gross margin improved by 1.6 percentage points to 17.9%. The results show a widening gap between Geely Auto’s international expansion and its softer performance in China, while stronger underlying profitability continued to outpace headline revenue growth.

Profit Growth Remains Strong Beneath The Headline Result

Reported net profit attributable to shareholders declined 2% year-on-year to 9.09 billion yuan, but the decline was largely linked to changes in other net gains rather than deterioration in the company’s core operating performance. Other net gains fell to 1.02 billion yuan from 4.74 billion yuan a year earlier, reflecting fluctuations that included foreign-exchange gains and losses. Excluding after-tax foreign-exchange gains and losses and impairment charges on non-financial assets, core net profit attributable to shareholders rose 46% to 9.68 billion yuan. That increase was substantially faster than revenue growth and indicates that underlying profitability improved despite the weaker reported bottom line.

The company’s cash position and capital allocation also showed mixed signals during the period. Operating cash flow stood at 19.92 billion yuan, down 68% year-on-year, while the board decided not to declare an interim dividend, consistent with the decision taken a year earlier. At the same time, Geely continued to invest heavily in future products and technology. Research and development expenses increased 25.5% to 9.2 billion yuan, while distribution and selling expenses rose 16.3% to 9.83 billion yuan. The spending pattern reflects a strategy focused on product development, technology capabilities and broader market expansion rather than near-term shareholder distributions.

Overseas Expansion Offsets Weaker Domestic Demand

Vehicle volume growth was comparatively modest, with Geely Auto selling 1,422,958 vehicles in the first half, an increase of about 1%. The headline volume masks a major shift in geographic mix. Overseas sales surged 157.6% to 474,228 vehicles, and monthly exports exceeded 100,000 units for the first time in June. Domestic sales fell 22.6% to 948,730 vehicles. This divergence means international markets are becoming an increasingly important source of incremental volume as competition and demand pressure intensify in China.

Geely Auto Monthly Sales, 2024-2026

The monthly sales data also show that the 2026 improvement in total deliveries has been driven mainly by exports rather than a recovery in the domestic market. January 2026 sales reached 270,167 units, while February through June remained above 200,000 units each month. July climbed further to 250,161 units. The pattern is materially different from the domestic trajectory, where monthly sales in 2026 stayed well below the corresponding 2025 figures from February onward. The geographic imbalance is therefore not a temporary monthly fluctuation; it has become a defining feature of the company’s current sales performance and expansion strategy.

The monthly sales figures reinforce the scale of this shift. Geely’s total monthly sales rose from 213,487 units in January 2024 to 270,167 units in January 2026, while June sales reached 240,799 units in 2026 compared with 236,036 units in 2025. July sales then climbed to a record 250,161 units, up from 237,717 units a year earlier. The company’s international momentum was even stronger, with exports reaching 106,663 units in July 2026. By contrast, domestic sales in July dropped to 143,498 units from 202,445 units in July 2025, underscoring the continuing pressure in the home market.

Geely Auto Monthly Exports, 2024-2026

Geely’s overseas performance continued to accelerate after the first-half reporting period. Exports reached another record of 106,663 vehicles in July, compared with 35,272 units in July 2025 and 33,283 units in July 2024. The company’s June export volume had already crossed 100,000 units for the first time, showing that the increase was building over several months rather than being driven by one exceptional period. Meanwhile, domestic July sales declined 29.1% year-on-year. The contrast reinforces the importance of international markets to Geely’s near-term volume growth and explains why management has placed overseas expansion among its key priorities for the second half.

Geely Auto Monthly Sales In China, 2024-2026

The domestic sales series provides a clearer view of the pressure facing the company in its home market. Sales in China increased strongly through 2025, reaching 268,337 units in November, but the corresponding 2026 figures fell substantially across the reported months. January 2026 domestic sales were 209,661 units compared with 239,383 units in January 2025, while June declined to 137,925 units from 196,025 units. July sales were 143,498 units versus 202,445 units a year earlier. The figures underline why international expansion has become strategically important for maintaining overall vehicle volume and revenue momentum.

Premiumization Supports Higher Vehicle Value

The shift in sales mix also supported a higher value per vehicle. Geely said the Zeekr 9X became China’s best-selling model priced above 500,000 yuan, contributing to a 15,000 yuan increase in average selling price to 112,000 yuan. The upmarket strategy is important because it can improve revenue and margin quality even when overall unit growth remains limited. Premium products also give the group more opportunities to compete beyond volume-led segments and strengthen the economics of its portfolio. Together with higher research and development spending, the result suggests that Geely is trying to combine international scale with greater product value and technology differentiation.

International Competition And Second-Half Strategy

Geely nevertheless remains behind BYD in overseas new-energy vehicle sales. BYD reported 792,256 NEVs sold overseas during the first half, nearly twice Geely’s export volume of 474,228 vehicles. The comparison highlights both the opportunity and the competitive challenge facing Geely as Chinese automakers expand internationally. Geely’s rapid export growth indicates increasing traction outside its home market, but the company must continue building brand recognition, distribution networks and product acceptance across different regions to close the gap with larger global rivals. The second-half strategy will therefore depend on converting export momentum into sustained market share and profitable growth.

For the second half, the company said it will accelerate overseas expansion while consolidating its position in the Chinese market, with “Full-Domain AI” at the center of its technology strategy. This approach indicates that Geely is linking market expansion with deeper software and artificial-intelligence capabilities rather than relying only on additional vehicle volume. The combination of higher R&D investment, premiumization, stronger exports and AI-led technology development gives the company several avenues for growth. However, the continuing decline in domestic sales and lower operating cash flow remain important risks as Geely balances international expansion with investment requirements.

Frequently Asked Questions

Why did Geely Auto report lower net profit despite record revenue?
The lower reported profit mainly reflected a sharp reduction in other net gains, including fluctuations from foreign-exchange gains and losses during the period. Net profit attributable to shareholders fell 2% to 9.09 billion yuan, even though revenue increased 15% to 173.6 billion yuan and gross profit rose 25.7%. Core net profit, excluding after-tax foreign-exchange gains and losses and impairment charges on non-financial assets, increased 46% to 9.68 billion yuan, indicating that underlying profitability improved significantly.

What drove Geely’s vehicle sales growth in the first half?
Overseas sales became the main growth engine, with exports rising sharply while domestic vehicle deliveries declined substantially during the first half. Geely sold 1,422,958 vehicles overall, up about 1%, but overseas sales jumped 157.6% to 474,228 vehicles. Domestic sales fell 22.6% to 948,730 vehicles. Monthly exports exceeded 100,000 units for the first time in June and reached another record of 106,663 vehicles in July, showing that international expansion was increasingly offsetting weakness in the Chinese market.

What is Geely’s strategy for the second half of 2026?
Geely plans to accelerate overseas expansion while consolidating its position in the Chinese market, using “Full-Domain AI” as a core element of its technology strategy. The company is also continuing substantial investment in research and development, with first-half R&D expenses rising 25.5% to 9.2 billion yuan. Its strategy combines international volume growth, premium products, technology investment and AI capabilities. The main challenge will be sustaining overseas momentum while managing weaker domestic demand, lower operating cash flow and the costs associated with continued global expansion.