Geely raises export target and prepares EV production in Brazil
Geely is accelerating its international expansion to reduce reliance on the Chinese market and is preparing Brazil to play a larger role in that strategy.
After more than doubling exports in the first half of the year, the automaker raised its overseas sales target for 2026 by 23%, to 920,000 vehicles, while moving forward with plans to produce electrified models locally in Brazil.
The push comes as China’s auto industry faces weaker domestic demand and intense price competition. In the first six months of the year, car sales in China fell 20%, and the Passenger Car Association projects a 14% decline for full-year 2026.
For Geely, the answer has been to seek consumers beyond China. The company exported 474,228 vehicles between January and June, more than double the volume shipped in the same period a year earlier. That performance led the company to raise its annual target for international shipments.
The international strategy was also supported by financial results. Geely’s net profit rose 36% in the second quarter to 4.9 billion yuan, equivalent to about $727 million, in line with analysts’ expectations.
In the first half, however, cumulative profit fell 1.8% to 9.09 billion yuan, still above market forecasts. After the results were released, the company’s shares rose 4.8% on the Hong Kong Stock Exchange.
Geely’s overseas expansion also puts it in an increasingly intense race with other Chinese automakers. BYD, the main global reference among Chinese manufacturers in the electrified-vehicle segment, sold more than 812,700 vehicles abroad in the first half, nearly twice Geely’s volume.
The gap highlights one of Geely’s challenges. Although it has a portfolio of electric and hybrid vehicles, the company moved more slowly in building an international distribution network and is now trying to recover ground.
Brazil enters production strategy
Brazil will be one of the bases for this expansion. Geely plans to produce the EX5, an electric compact crossover, and the EX2, an electric hatchback known as Xingyuan in the Chinese market, locally through its partnership with Renault.
The agreement between the two automakers involves using the French manufacturer’s industrial and commercial structure in Brazil. Renault’s Ayrton Senna industrial complex in Paraná state has been selected as the production base for new vehicles from the companies.
For Geely, producing in Brazil means moving beyond a strategy based solely on importing Chinese vehicles. Local manufacturing could strengthen its ability to compete on price and scale while bringing the brand closer to one of Latin America’s largest auto markets.
The move comes as Chinese automakers expand in Brazil, increasing investments, dealership networks and industrial projects as they compete for space with groups long established in the Brazilian market.
Geely changes leadership
The international expansion coincides with a major governance change at the group. Li Shufu will step down as chairman of Geely Auto and become lifetime honorary chairman. He will remain at the head of parent company Zhejiang Geely Holding Group, preserving his influence over the automotive conglomerate.
The reorganization will allow Li to devote more time to the group’s other businesses and succession planning. Over recent decades, Geely has built a global presence through brands and stakes in several automakers.
At the same time, Geely is seeking to increase the profitability of its portfolio. Zeekr, its more premium brand, has helped lift the average ticket of vehicles sold. The 9X SUV became the leading vehicle in China among cars priced above 500,000 yuan, while the company’s average selling price rose by 15,000 yuan to 112,000 yuan.
With Chinese demand weaker, the combination of exports, international production and higher-value vehicles is gaining importance in Geely’s next phase. In that strategy, Brazil shifts from consumer market to industrial platform, placing the country directly inside the race among Chinese automakers for global scale.
Source: Portal In