Geely's May sales edge up as exports hit another record

• Geely Auto's exports surged 184% year-on-year in May, offsetting the negative impact of a nearly 26% decline in domestic sales.
• Geely Auto's BEV sales fell 19.37% year-on-year in May, while PHEV sales grew 31.97%.

Geely Auto (HKEX: 0175) posted a slight increase in vehicle sales last month, as strong and record-breaking overseas exports offset the negative impact of continued weakness in the domestic market.

The Chinese auto giant's total sales reached 237,637 vehicles in May, up a marginal 1.03% from a year earlier and 1.05% higher than in April, according to data it released on Monday.

During the January to May period this year, Geely Auto's cumulative total sales reached 1,182,159 vehicles, edging up 0.77% from the same period last year.

Exports continued to be Geely Auto's biggest growth engine. The company sold a record 85,144 vehicles overseas in May, surging 183.65% year-on-year.

In contrast, its performance in the domestic market appeared bleak. Geely Auto's domestic sales stood at 152,493 vehicles in May, tumbling 25.68% from a year earlier.

In the new energy vehicle segment, the performance of different powertrain types showed a clear divergence.

Geely Auto's battery electric vehicle (BEV) sales stood at 76,633 units in May, down 19.37% year-on-year.

However, its plug-in hybrid electric vehicle (PHEV) sales reached 56,722 units in May, jumping 31.97% year-on-year.

The performance of its premium brand Zeekr was particularly striking, delivering a record 34,377 vehicles in May, a massive year-on-year increase of 81.81%.

Zeekr's strong performance was mainly driven by its high-end product matrix. The higher-priced Zeekr 9 and 8 series models accounted for nearly 50% of the total, driving the average transaction price per vehicle up 52.4% year-on-year.

However, the performance of Geely's other sub-brands faced pressure. Geely Galaxy sold 81,727 vehicles in May, down 19.75% year-on-year. This marked the fifth consecutive month of year-on-year sales decline for the brand.

The Lynk & Co brand's sales in May were 20,732 vehicles, slumping 24.97% year-on-year.

The main Geely brand sold 182,528 vehicles in May, dropping 3.26% year-on-year.

To stimulate sales momentum in the mass market, Geely Auto recently launched an updated version of the Xingyuan compact EV.

The new model has a limited-time starting price of 61,800 yuan ($9,140), which is 6% lower than the discounted starting price of its predecessor, in a bid to consolidate its position in the entry-level market.

The updated Xingyuan comes standard with battery cells from CATL (HKEX: 3750) across all variants and is equipped with an advanced smart cockpit system to attract young consumers.

The robust export business is becoming key for Geely to withstand the pressure of the domestic price war. Excluding the impact of foreign exchange fluctuations, the company's core net profit in the first quarter surged 31%, according to its earnings report released in late April.

Against the backdrop of an intense price war in the domestic market that continues to squeeze profit margins, overseas market expansion is becoming an important pivot for Geely Auto to maintain profitability.

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