Geely Automobile May car sales at 235,208 units

Geely Automobile May car sales at 235,208 units

Geely Automobile Holdings (HKG: 0175) reported a significant increase in May car sales, reaching 235,208 units. This figure represents a 25% year-over-year growth, driven by strong demand for electric vehicles (EVs) and the company's ongoing expansion into new markets.

Geely's May sales performance was bolstered by the success of its Zeekr premium EV brand, which saw a 35% increase in sales compared to the same period last year. Zeekr's growth is attributed to its innovative product offerings and strategic positioning in the competitive EV market.

However, the company's privatization proposal for Zeekr has sparked controversy among early investors. Five early investors, including CATL (SHE: 300750), Intel Capital, and Boyu Capital, have expressed dissatisfaction with Geely's $2.2 billion offer, deeming it undervalued [1]. These investors participated in Zeekr's first round of external financing in 2021 and collectively held a 6% stake in the company.

Despite the investors' concerns, Geely Auto's substantial voting rights (65.7% stake in Zeekr) may allow it to proceed with privatization without the approval of other shareholders. Geely announced its non-binding offer to take Zeekr private on May 7, with a proposed purchase price of $2.57 per Zeekr share or $25.66 per American Depositary Share (ADS), representing a 13.6% premium over the last trading session.

Geely's strong May sales performance underscores its commitment to growth and innovation in the EV sector. However, the privatization proposal for Zeekr remains a contentious issue that could impact the company's future strategy and investor relations.

References:
[1] https://cnevpost.com/2025/05/30/zeekr-investors-unhappy-geely-privatization/