Geely Automobile's Strategic Transformation and New Energy Growth: A Case Study in Synergy and Electrification

In the rapidly evolving automotive landscape, Geely Automobile has emerged as a masterclass in strategic reinvention. By executing its "One Geely" synergy strategy with surgical precision, the company has not only accelerated its electrification growth but also redefined the economics of new energy vehicle (NEV) production. The results? A 27% year-over-year revenue surge to 150.3 billion RMB in the first half of 2025, alongside a 126% increase in NEV sales to 725,151 units, which now account for 51.5% of total sales [1][4]. This is not just growth—it is a seismic shift in how traditional automakers can leverage integration to dominate the intelligent new energy era.

The cornerstone of Geely’s success lies in its ability to unlock synergies across its portfolio. The 2025 merger of Zeekr and Lynk & Co, for instance, has created a blueprint for cross-brand efficiency. By sharing R&D, manufacturing, and supply chains, Geely has slashed costs while expanding its product mix into high-end and luxury segments. Zeekr’s 91,000-unit H1 2025 sales and Lynk & Co’s 154,000-unit performance underscore the power of this integration [1]. Meanwhile, the Galaxy brand’s 232% year-over-year sales growth to 548,000 units highlights Geely’s agility in capturing mainstream markets [1].

What makes this strategy particularly compelling is its financial discipline. Despite fierce competition, Geely maintained a 16.4% gross margin in H1 2025, a testament to its cost-optimization prowess [2]. This margin, coupled with a 102% surge in core net profit (excluding non-recurring items) to 6.66 billion RMB, demonstrates that electrification does not have to come at the expense of profitability [1][3]. The company’s modular platforms and shared infrastructure have created a flywheel effect: economies of scale drive down costs, which in turn fund further innovation and market expansion.

Geely’s global ambitions are equally bold. With NEV exports surpassing 40,000 units in H1 2025—a 146% increase YoY—and a full-year 2024 export target of 414,522 units achieved [2], the company is positioning itself as a challenger to Tesla and legacy automakers in international markets. Strategic partnerships, such as the July 2025 deepening of ties between Geely and Zeekr, are accelerating this push. These collaborations span technology development, supply chains, and after-sales services, ensuring that Geely’s global footprint is not just expansive but also resilient [1].

Critics may argue that Geely’s success hinges on favorable macroeconomic conditions or government subsidies. But the data tells a different story. Even in a volatile market, Geely’s core net profit surged by 102% in H1 2025, outpacing its revenue growth [1][3]. This suggests that the company’s strategic integration is generating value beyond cyclical factors. Furthermore, its 3 million-unit full-year sales target—up from 2.71 million—reflects confidence in sustainable demand for its electrified offerings [1].

The implications for investors are clear. Geely’s "One Geely" strategy is not a one-off restructuring but a long-term playbook for dominance in the NEV era. By aligning its brands, platforms, and global operations, the company is creating a moat that rivals will struggle to replicate. As the automotive industry shifts from combustion engines to software-defined vehicles, Geely’s ability to scale efficiently while maintaining profitability positions it as a leader in the next chapter of mobility.

Source:[1] Geely Auto 2025 H1 Revenues Exceed 150B RMB [https://global.geely.com/en/news/2025/geely-auto-2025-h1-revenues][2] Revenue Soars Past 240 Billion RMB, Profit Hits New Peaks [https://www.geely.com/en/news/2025/geely-automobile-records-revenue-profit-2024][3] Geely's revenues rise 27% in H1 [https://www.just-auto.com/news/geelys-revenues-rise-27-in-h1/][4] Geely Automobile posts best-ever H1 revenue in 2025 - Gasgoo [https://autonews.gasgoo.com/m/70038615.html]