Geely's Electric Ascendancy: How AI and Global Reach Are Fueling Dominance in the EV Revolution

The global shift to electric vehicles (EVs) is no longer a distant trend—it’s a seismic shift reshaping automotive markets. At the vanguard stands China’s Geely Holding Group, which has transformed itself from a domestic automaker into a global EV powerhouse. With 92% growth in New Energy Vehicle (NEV) sales in 2024, strategic AI integration, and a 57% surge in overseas exports, Geely is positioned to capitalize on the EV transition. Its premium brands, Zeekr and Lynk & Co, are now critical levers in this ambition. But can Geely sustain its momentum against rivals like BYD and Huawei-backed Nio? Let’s dissect the numbers and the strategy behind its rise.

The Financial Blueprint: Growth, Margins, and Scale

Geely’s 2024 results reveal a company firing on all cylinders. Total sales hit 3.3 million units, a 22% year-on-year jump, with 45% of sales now electrified (BEVs, PHEVs, or hybrids). This isn’t just volume—it’s profitability. Take Zeekr, its luxury EV brand, which reported ¥88.17 billion in revenue in 2024—a 127% surge—while its vehicle margin hit 21.2% in Q4, nearly doubling from 2023. Lynk & Co, now fully integrated into Zeekr’s luxury EV ecosystem, added ¥11.8 billion in revenue (up 23%) and achieved 11.4% margins, proving its premium pivot works.

Even as global automakers grapple with overcapacity and subsidies, Geely’s cost discipline shines. Operating losses at its premium brands fell 51% year-on-year in Q4 2024, thanks to shared R&D platforms and AI-optimized supply chains. The group’s 2025 targets—320,000 Zeekr units and 390,000 Lynk & Co units—suggest this momentum will accelerate.

AI as a Competitive Moat: Zeekr 9X and Lynk & Co’s NVIDIA Edge

Geely’s secret weapon is its AI-driven innovation, which differentiates it from competitors. Take the Zeekr 9X, a hybrid SUV launching in 2025 with NVIDIA’s DRIVE AGX Thor platform, enabling autonomous driving capabilities rivaling Tesla’s Full Self-Driving. Meanwhile, Lynk & Co’s 900 SUV integrates NVIDIA Thor for over-the-air updates and real-time data processing. This tech stack isn’t just about features—it’s a software monetization engine.

While BYD dominates on volume and subsidies, Geely is building a scalable AI ecosystem that could prove more profitable long-term. Its Short Blade Battery (enhancing safety) and methanol-hydrogen fuel tech (for commercial vehicles) add layers of differentiation, appealing to markets where lithium scarcity or infrastructure gaps persist.

Global Dominance: Export Surge and Market Diversification

Geely’s 57% export growth in 2024 isn’t just a numbers game. It’s strategically targeting high-margin regions:
- Europe: Zeekr’s 222,123 deliveries in 2024 made it China’s top-selling luxury EV brand, with 30% of sales overseas.
- Middle East/Southeast Asia: Proton’s methanol-powered EVs are gaining traction, while Volvo’s 46% electrified sales anchor premium markets.
- Americas: Lynk & Co’s EM-P hybrids are breaking into U.S. and South American markets, aided by Meizu’s Flyme OS integration for seamless digital ecosystems.

This geographic spread mitigates reliance on China’s subsidy-driven market. As European EV incentives expand and U.S. trade barriers ease, Geely’s diversified footprint is a risk hedge.

Risks and the Road Ahead

No investment is without risks. Geely’s subsidy dependency remains a concern: China’s NEV purchase incentives, set to phase out by 2025, could pressure margins. Competitors like Huawei’s问界 (Askew) are also ramping up AI capabilities, and BYD’s economies of scale threaten premium segments.

Yet Geely’s 2025 product blitz—including the Zeekr 7GT (0-60 mph in 2.95 seconds) and Lynk & Co’s Thor-powered models—aims to out-innovate rivals. With ¥39.4 billion in cash reserves (as of Q1 2024) and a 5-million-unit sales target by 2027, the company is doubling down on tech and global scale.

Investor Takeaway: Buy the Transition, Not the Hype

Geely isn’t just another EV player—it’s a total solutions provider for the mobility of the 2020s. Its blend of premium branding, AI-first tech, and global export growth creates a moat few can match. While subsidies and competition loom, the 2025 model launches and cost efficiencies suggest profitability will follow.

For investors, this is a buy now, profit later play. With shares of Geely Auto Group (0175.HK) trading at 12x forward EV/Sales—a discount to Tesla’s 18x—there’s room to grow as EV adoption peaks. Don’t miss the boat: Geely’s EV ascendancy is just beginning.

Action Item: Allocate capital to Geely Auto Group ahead of its Q2 2025 earnings, which will likely showcase strong adoption of its 2025 models. This is a rare chance to back a global EV leader at a strategic inflection point.