- Geely Auto introduces most stringent Chinese State 6B emission standards ahead of time
- Electrified and new energy vehicle range continues to beat expectations
- China’s best-selling domestic brand well positioned for second half of 2019
2019 July 08, Hong Kong. Geely Automobile Holdings Limited (Group) announced that total sales volume of the Group (including the sales volume of LYNK & CO-branded vehicles sold by the Group’s 50%-owned joint venture) reached 651,680 units in the first six months of the year. In June, the Group sold 90,875 vehicles, an increase of 1% from the previous month. Of the total sales volume in June 2019, overseas exports reached 6,234 units. The sale of new energy vehicles reached 15,985 units in June 2019. The Group was first in cumulative sales in 2019 among Chinese brands and have completed 43% of its annual sales target of 1.51 million units. Exports in the first six months of the year reached 38,619 units, an increase of 343.95% from the same period last year. Cumulative sales of new energy vehicles reached 57,600 vehicles, an increase of 301.06% from the same period last year.
Factors such as global trade friction, the premature switch from Chinese State Five Emissions to Chinese State six emission standards, and the reduction in new energy vehicle subsidies have affected the Group’s performance in the first half of 2019. However, the Group has proactively moved to introduce the most stringent emission standard, China State 6B, ahead of its competitors which are still majority using Chinese State 6A. In the second half of 2019 Geely Auto will also introduce updated versions of its best-selling models such as the Bo Yue SUV which will help to spur growth in the second half.
In the first half of the year, the total sales volume of Geely Auto brand SUVs reached 365,389 units, 56% of the Group’s total sales, furthering Geely Auto’s position as the leading Chinese SUV manufacturer. The Geely Bo Yue sold 13,786 units in June and 109,714 units in the first half of the year, becoming one of the best-selling SUVs in its segment. The crossover SUV, Emgrand GS sold 5,359 units in June and 51,458 units in the first half of the year, leading the crossover SUV segment. The high-powered smart SUV, Bin Yue sold 10,786 units in June and 69,051 units in the first half of the year. Vision SUV and Vision X3 sold 40,831 and 40,346 units respectively in the first half of the year. The Group’s first CMA based flagship model, the Xing Yue launched less than two months ago continued to climb in sales, reaching 2,431 units in June and 3,540 units in the first half of the year.
In the sedan market, Geely Auto’s various models continued to maintain their leads. The flagship B-segment Bo Rui sedan sold 1,551 units in June and 13,050 units in the first half of the year, maintaining its position as the best selling Chinese sedan in its segment. The New Emgrand sold 15,034 units in June and 109,171 units in the first half of the year, easily holding its title as the champion of Chinese brand sedans in its segment. Other segment champions include the Emgrand GL and Binrui models which respectively sold 5,055 units and 5,180 units in June and 44,742 units and 42,767 units in the first half of the year. The Vision sedan sold 5,096 units in June and 39,595 units from the half of the year, firmly holding its leadership position in the domestic A-segment sedan market.
In the MPV market, Geely Auto’s first MPV, the Jiaji saw its sales rise continuously since its launch in March. In June 2019, sales of the MPV reached a new high of 3,654 units, ranking amongst the best-selling MPVs in the market. Its cumulative sales in 2019 reached 14,939 units, becoming a new growth segment for the Group.
During the month of June 2019, the sales volumes the Geely Auto and Volvo Cars joint venture brand Lynk & Co reached 8,655 units with the “LYNK & CO 01”, “LYNK & CO 02” and “LYNK & CO 03” selling 4,533 units, 2,029 units and 2,093 units, respectively. Total sales in the first half of 2019 for the brand was 55,877 units with its models selling 26,184 units, 11,801 units, and 17,892 units, respectively. The brand represents the Group’s push into the high-end segment of the market.
In the field of new energy, the Group launched a number of new models in 2019 including Geometry A, Emgrand GL Plug-in Hybrid, and Bin Yue Plug-in Hybrid. In the first half of 2019, new energy vehicle sales reached 57,600 units, an increase of 301.06 % from the same period last year. Among them Geometry A reached sold 1,743 units in June and 4,135 units in just three months since its launch in March 2019.
Driven by technology and quality. Building core strength through “high quality development”
As China’s domestic automotive market environment enters a downturn, the Group continues to adhere to “high quality development” with a focus on technology and brand building as a means of resisting the uncertainty of the market and various policies and inject confidence into Chinese brands. While maintaining steady growth in market share, the Group has continued to upgrade its product matrix to offer users higher quality and higher value products and experiences. The Group’s consumer base has continued to expand and have seen its average selling price and brand value increase.
According to the latest statistics in the first five months of 2019, the Group achieved a market share of 6.68%, higher than the 6.3% in the same period last year. The Group has continued to outperform the market. In the first half of the year, the Group’s products priced above 80,000 RMB accounted for 80% of its sales and sales in first and second tier cities exceeded 50%. For the second half of 2019, the Group has put forth a development strategy with a focus on stability, increasing market share, and improving operation quality. With greater uncertainty in the Chinese automotive market environment, the Group’s management team has revised downward its 2019 full year sales volume target by 10% from 1,510,000 units to 1,360,000 units.
Presently, the Group has basically completed the clearing its inventory of Chinese State 5 emission models and implemented Chinese State 6B standards. Dealership inventory of State 5 vehicles has also been reduced to zero in regions where State 6 is mandated with overall dealership inventory brought to low levels across the Chinese market.
With the continuous development of new models such as the Xing Yue SUV and Jia Ji MPV and the launch of new models such as the Bo Yue PRO, the Group will further strengthen consumer confidence in its brand, technology, products, and culture. The Group is set to continue increasing its market share and lead China as the industry moves towards to higher end of the global value chain.