Geely Automobile's EV Competition Strategy Benchmarking Against BYD: Analysis of Sustainability and Market Impact

This analysis is based on a social media post dated December 20, 2025 (discussing Geely Automobile and BYD’s competition strategies in the electric vehicle market), combined with market data and industry analysis. Geely Automobile has adopted a comprehensive strategy of benchmarking against BYD, achieving significant sales performance by offering richer configurations and more affordable prices on similar models (e.g., Seagull vs. Star Wish, Tang L vs. Galaxy M9) [0]. Sales data shows that Geely Star Wish sold 44,007 units in November 2025, slightly lower than BYD Seagull’s 50,106 units. However, in the medium-to-large SUV segment, Geely Galaxy M9 (launched at the end of 2025) is expected to exceed 20,000 monthly sales in 2026, while BYD Tang L faced market challenges in 2025 [0].

In terms of R&D investment, BYD’s R&D expenditure reached 309 billion yuan (a year-on-year increase of 53%) in the first half of 2025, focusing on battery technology and vehicle platforms, reflecting its core advantage in vertical integration. Geely’s R&D expenditure during the same period was 73.28 billion yuan (a year-on-year increase of 21%), focusing on AI technology [0]. Although BYD’s R&D investment is much higher than Geely’s, Geely’s differentiated layout in specific technical fields is worth noting.

1. Strategy Sustainability: Short-term Effectiveness, Long-term Doubts
   
   Geely’s price and configuration advantages drive short-term sales growth, but its brand loyalty is lower than BYD’s [0]. Long-term sustainability depends on technological breakthroughs and brand building, while BYD’s vertical integration capability makes it more resilient in cost control and technology iteration.

2. Valuation Differentiation: Geely’s Potential to be Unleashed, BYD’s Market Capitalization Dominates
   
   As of 2025, BYD’s market capitalization reached 850.42 billion USD, and Geely’s was 170.62 billion USD. In 2025, Geely’s stock price rose by 16.64%, while BYD’s slightly fell by 0.11%, reflecting the market’s certain recognition of Geely’s growth potential. However, Geely’s lower P/E ratio implies that its valuation still has room for improvement [0].

• Risks
  : Insufficient R&D investment (compared to BYD) may lead to technological lag; price wars may compress profit margins; brand loyalty needs to be improved.
• Opportunities
  : Continuously seize market share in compact and medium-to-large SUV segments; AI R&D may become a differentiated competitive point.

• Risks
  : Need to respond to Geely’s price competition; some models (e.g., Tang L) face market challenges; need to accelerate product upgrades.
• Opportunities
  : Plans to launch new models in 2026; vertical integration advantages may support it in coping with price pressure.

Geely Automobile’s benchmarking strategy has driven short-term sales growth, but long-term sustainable competitive advantages still require breakthroughs in technology and brand dimensions. BYD’s R&D and vertical integration advantages keep it resilient in market competition. In terms of valuation, Geely’s stock price performance is strong, but BYD’s market capitalization still dominates. Market share competition will continue to focus on specific segments, and both parties need to adjust their strategies to consolidate or enhance their market positions.