Analysis of the Sustainability and Market Impact of Geely Auto's Product Benchmarking Strategy

Geely Auto challenges BYD in the new energy vehicle market through its product benchmarking strategy (Seagull vs. Xingyuan, Tang L vs. Galaxy M9) and has achieved positive short-term sales results: Xingyuan’s registration volume exceeded 44,000 units in October 2025 [1], and Galaxy M9’s sales exceeded 10,000 units within three months of its launch [2], driving Geely’s sales to 200,000 units in October 2025, a year-on-year increase of 50% [2]. During the same period, BYD’s sales decreased by 12% year-on-year [3], showing short-term competitive pressure.

Financial and valuation comparisons show that Geely (P/E ratio: 10.24x, P/B ratio: 1.75x) has a more attractive valuation than BYD (P/E ratio: 22.45x, P/B ratio: 3.92x) [0]; in terms of stock price performance, Geely’s YTD growth in 2025 was 20.17%, outperforming BYD’s 4.48% [0]. However, BYD’s market capitalization ($850.42B) is still much higher than Geely’s ($170.62B) [0], and DCF valuation shows that BYD has greater potential upside [0].

1. The core logic of the benchmarking strategy is to compete for segmented markets through precise pricing and configuration matching; Geely’s short-term success is due to its grasp of consumer demand in the entry-level and mid-to-high-end markets.
2. BYD’s challenges come not only from direct competition from Geely but also from market doubts about R&D investment efficiency and strategic direction; its subsequent technological iterations and product layout need to be watched.
3. The success case of Xiaomi Auto shows that accurately meeting consumer needs is the key to competition in the new energy vehicle market; Geely’s benchmarking strategy can learn from its demand-oriented experience.

• Geely: Long-term reliance on the benchmarking strategy may lead to insufficient brand differentiation; the risk of lagging technological innovation needs to be vigilant [0];
• BYD: Short-term sales decline and doubts about R&D efficiency may affect market confidence; profit margin pressure and the effect of strategic adjustments need to be watched [0].

• Geely: The benchmarking strategy has verified its product strength and market insight; if combined with technological innovation and brand upgrading, it is expected to further increase market share [0];
• BYD: With scale advantages and technological accumulation, if it can optimize R&D efficiency and strategic direction, it still has long-term growth potential [0].

Geely Auto’s product benchmarking strategy has achieved significant short-term results, driving its sales and stock price performance to outperform BYD. The valuation differences between the two companies are obvious: Geely has a more attractive valuation, while BYD has a larger market capitalization and greater potential upside. The sustainability of the strategy depends on technological innovation and brand differentiation capabilities; investors need to pay attention to the subsequent product iterations, R&D investments, and market strategy adjustments of both companies.

[0] Jinling Analysis Database
[1] CleanTechnica: Geely Xingyuan Takes Top Spot in China! — April 2025 Sales Report
[2] CleanTechnica: A Tale of Two Markets — BEVs Up 20% YoY & PHEVs Down 10% YoY in China
[3] TradingView: BYD’s October vehicle sales down 12% from year earlier