Geely sees better Q4 after record profit amid China auto sector challenges
Geely Auto posted a 32 per cent rise in core profit to 5.21 billion yuan last quarter. Vice-chairman Gui Shengyue said the firm faced unprecedented market conditions but achieved record sales and profit, forecasting a stronger current quarter.
Geely Auto reported a core profit of 5.21 billion yuan (HK$5.57 billion) for the third quarter, excluding the impact of exchange rates and non-financial asset impairments, marking a 32 per cent increase year-on-year, the company announced on 29 October.
Vice-chairman Gui Shengyue told an earnings call that the past three months had brought an "unprecedentedly severe situation" for the group. He noted that this year Chinese carmakers had launched the highest number of new models ever, leading to homogenised competition across all product lines. Despite the pressure, Geely achieved record highs in both sales volume and profit, and he expressed confidence that the current quarter would outperform the previous one.
Gui described the current period as "the coldest winter for the auto industry" and a time when both consumers and the sector were beginning to move toward rationality, according to the report. He argued that a company with decades of car-building experience and a relentless pursuit of quality, safety and driving experience would ultimately distinguish itself from fast-track manufacturers, saying "time will give the answer." Geely plans to meet the demands of new energy, smart technology and artificial-intelligence development while adhering to its core principles of safety, experience and quality.
Regarding the European Union's import quotas on Chinese hybrid vehicles, management said Geely remains committed to open cooperation and lawful compliance. Having established a presence in Europe a decade ago, the group expects synergies with brands such as Volvo and Ford to gradually deliver results, presenting more opportunities than challenges.
Geely will launch several new and upgraded models this quarter as it pursues an annual sales target of 3.45 million vehicles, including an export target of over one million units.