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Can Geely Fully Take on BYD? Summary

Core Content

This report analyzes the competitive dynamics between Geely Auto and BYD in China's automotive market, focusing on the desire for energy-saving among consumers and the strategic moves of both automakers to dominate the new energy vehicle (NEV) segment.

Main Points

• Energy-Saving Desire: In 2024, the desire for energy-saving among Chinese car buyers reached 54.59%, with a significant shift toward NEVs due to rising fuel costs and the popularity of electric vehicles.

• BYD's Rise: BYD began its ascent in the energy-saving segment in 2021 with affordable and efficient NEVs like the Qin PLUS and Song PLUS, which targeted the blue collar market. By 2024, BYD's global sales exceeded 4 million units, with NEVs accounting for nearly 94% of its total sales.

• Geely Auto's Response: Geely Auto launched multiple NEV models in 2022 and 2023, including the Emgrand L PHEV, Xingyue L PHEV, and Galaxy L6/L7, aiming to challenge BYD. However, these early models faced issues with cost and reliability, leading to poor market performance.

• Successful Small EVs: In 2023, the Geely Panda became a surprise hit, and in 2024, the Galaxy E5 and Xingyuan further bolstered Geely Auto's small EV presence, directly competing with BYD's Seagull and Dolphin models.

• 2025 Strategic Moves: Geely Auto is preparing for a full-scale offensive in 2025, launching the Starship 7, Galaxy L6, and Galaxy L7, which are more competitive in terms of pricing and energy efficiency. These models will target BYD's Qin, Song, Han, and Tang families, as well as models from the Ocean network. Additionally, Geely is entering the high-end market with new models like the LYNK & CO 900, ZEEKR large SUV, and ZEEKR mid to large SUV.

• BYD's Counter Strategies: BYD has been actively defending its market position by launching new models, such as the Qin L, Sealion 05 DM-i, and Song L DM-i, while also intensifying its price war and promoting advanced technologies like DM-i 5.0 to maintain its competitive edge.

Key Information

• BYD's Dominance: BYD has solidified its leadership in the mainstream car market with strong sales and a broad range of NEV models.

• Geely's Growth: Geely Auto's NEV sales reached 56.79% of the total in 2024, showing a clear shift toward energy-saving technologies.

• Market Segments: The desire for energy-saving varies by use case, with road trip buyers showing the highest interest at 58%.

• Product Specifications: Both brands have been focusing on LFP batteries and 1-speed DHT transmissions for their NEVs to improve efficiency and reduce costs.

• Challenges for Geely: Despite progress, Geely Auto still faces internal challenges such as brand integration, high ICEV share, and lack of presence in the macho vehicle segment.

Strategic Implications

• BYD's Strengths: BYD has a clear and bold definition of high-end models, with a wider product portfolio and stronger market presence.

• Geely's Potential: Geely Auto is expected to launch a series of new NEVs in 2025, including Starship 7, Galaxy L6, Galaxy L7, and others, to challenge BYD in both the mainstream and high-end segments.

• Industry Impact: The full-on battle between Geely and BYD in 2025 is anticipated to escalate into a wider energy-saving war in the Chinese automotive industry.

Summary Table

Conclusion

Geely Auto is making significant strides toward challenging BYD in the energy-saving car market, particularly with its focus on small EVs and cost-effective PHEVs. However, to fully take on BYD, Geely needs to improve brand integration, reduce its ICEV share, and strengthen its presence in the high-end and macho vehicle segments. The 2025 battle between the two brands is expected to be a pivotal moment in the industry, potentially reshaping the competitive landscape of China's automotive market.