Geely: Undervalued, Moving Forward As One

In the rapidly evolving landscape of China's new energy vehicle (NEV) industry, Geely Automobile Holdings Limited stands out not just for its financial resilience but for its strategic mastery of industrial convergence. While the company's 2024 revenue surged 34% to 240.2 billion RMB and net profit jumped 213% to 16.6 billion RMBGeely Automobile Breaks Records in 2024: Revenue^[1], its true value lies in its ability to weave together electrification, artificial intelligence (AI), and global partnerships into a cohesive ecosystem. With a forward price-to-earnings (PE) ratio of 9.86 and a market capitalization of $23.84 billion, Geely appears undervalued relative to its transformative ambitions and execution.

Strategic Industrial Convergence: The Geely Ecosystem

Geely's “Smart Geely 2025” strategyGeely Auto Group Unveils Smart Geely 2025 Strategy^[2] is not merely a buzzword but a blueprint for redefining automotive innovation. The company has forged critical partnerships to accelerate its transition into a technology-led global player. For instance, its collaboration with CATL, the world's largest battery manufacturer, has enabled joint ventures in battery production and cutting-edge technologies like 800V silicon carbide power modulesCATL, Geely Deepen Strategic Partnership to Accelerate Full^[3]. This partnership ensures Geely's supply chain resilience while reducing costs—a critical edge in a sector where battery prices remain volatile.

Equally compelling is Geely's foray into AI. By integrating DeepSeek's advanced R1 AI model into its vehicles, Geely has enhanced human-computer interaction and intelligent driving capabilitiesGeely to integrate DeepSeek AI in upcoming cars^[4]. The result is a “Full-Stack AI” framework, the first of its kind in the industry, which spans architecture, powertrain, and after-sales servicesGeely Showcases New Vehicles and Comprehensive AI …^[5]. This ecosystem is further bolstered by Geely's satellite constellation, launched in 2024, which provides 90% global coverage and enables real-time vehicle connectivityGeely Auto Group Unveils Intelligent Geely 2025 Strategy^[6]. Such innovations position Geely not just as an automaker but as a leader in intelligent mobility.

Cross-Sector Collaborations and Global Ambitions

Geely's growth is also fueled by cross-industry alliances. Its joint venture with Megvii, a leading AI firm, underscores its commitment to smart driving technologiesGeely, Megvii form new smart vehicle joint venture^[7]. Meanwhile, the Renault partnership in Brazil—a framework agreement signed in Q3 2025—grants Geely access to Renault's manufacturing and distribution networks, accelerating its expansion into Latin AmericaRenault Group and Geely Holding Group sign a framework agreement for a new strategic cooperation in Brazil^[8]. These moves align with Geely's “Five by Five” globalization strategy, which includes R&D centers in Hangzhou, Gothenburg, and Frankfurt, ensuring localized innovation across key marketsGeely Auto Initiated the “Five by Five” Globalization Strategy and ...^[9].

Financially, Geely's global expansion is paying off. In Q1 2025, exports hit 89,953 units, a 48% year-on-year increase, with plans to expand sales outlets to 1,100 by year-endGeely Auto Delivers Q1 2025 Growth with RMB …^[10]. Its NEV sales in the first half of 2025 totaled 685,788 units, securing a 10.3% market share in China's fiercely competitive NEV sectorChina Car Sales Hit 2025 High in June, NEVs Power the Surge^[11]. This growth is underpinned by models like the Geely Xingyuan, which sold 204,940 units in six months, and the Zeekr brand, which targets premium electric SUVsGeely Xingyuan Takes Top Spot in China! — April 2025 Sales Report^[12].

Valuation and Future Prospects

Despite these achievements, Geely's valuation remains modest. With a forward PE of 9.86 and an enterprise-to-EBITDA ratio of 7.56Geely Automobile Holdings (GELHY) Statistics & Valuation Metrics^[13], the stock trades at a discount to peers like BYD and Tesla. This discrepancy may reflect underappreciated growth drivers, such as its battery-swapping infrastructure (5,000 stations planned by 2025) and the “Leishen Power” brand, which offers hybrid and electric powertrainsGeely Auto Group Unveils Intelligent Geely 2025 Strategy^[14]. Analysts at Bloomberg note that Geely's return on equity (16.76%) and 47% year-on-year sales growth in H1 2025Geely Auto Reports 2025 Mid-Year Results: Accelerating Global…^[15] justify a re-rating.

Conclusion

Geely's success hinges on its ability to merge industrial sectors—automotive, AI, and energy—into a unified ecosystem. While competitors focus on incremental improvements, Geely is redefining mobility through full-stack AI, global partnerships, and sustainable infrastructure. For investors, the company's undervalued metrics and strategic depth present a compelling case. As the NEV market matures, Geely's “moving forward as one” ethos—uniting technology, markets, and innovation—could propel it to the forefront of the next industrial revolution.