Geely Q1 profit falls 27% as weak demand hits China automakers

Net income declines to 4.2 billion yuan in the three months ended Mar 31, compared with 5.7 billion yuan in the year-ago period

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Published Wed, Apr 29, 2026 · 06:32 PM

Ahead of the Beijing car show, Geely launched a new hybrid technology, which it says can beat Toyota Motor and other Japanese manufacturers. PHOTO: BLOOMBERG

[BEIJING] Geely Automobile’s first-quarter profit missed analyst expectations, as China’s car market weakened following the winding back of government subsidies.

Net income declined 27 per cent to 4.2 billion yuan (S$785 million) in the three months ended Mar 31, compared with 5.7 billion yuan in the year-ago period, the Hong Kong-listed arm of billionaire Li Shufu’s car empire said on Wednesday (Apr 29).

That fell short of the 4.5 billion yuan average of analyst estimates compiled by Bloomberg. Revenue increased 15 per cent to 83.8 billion yuan.

The profit decline follows that of its biggest rival BYD, which on Tuesday posted a 55 per cent drop in Q1 profit to the lowest level in more than three years.

Geely’s overall vehicle sales of 709,358 in the quarter slightly edged out BYD’s of 700,463, though BYD regained the lead in March.

Ahead of the Beijing car show, Geely launched a new hybrid technology, which it says can beat Toyota Motor and other Japanese manufacturers, as it looks to compete more internationally.

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At home, it is offering its 8X luxury sport-utility vehicle with a package of incentives worth 27,000 yuan, as China’s car market remains stuck in the grips of a fierce price war that has eroded margins.

With soft demand and intense competition at home, Geely is ramping up exports and overseas production.

It has lifted its international sales target to 750,000 vehicles in April from an initial goal of 640,000 and has forged partnerships with global automakers.