Strategic Analysis of Geely Auto's Resource Allocation for ICE and New Energy Product Lines

First, it should be noted that according to the latest market data,

. In 2025, BYD’s pure electric vehicle sales reached 2.257 million units, with a year-on-year growth of nearly 28%, surpassing Tesla’s full-year sales of 1.636 million units for the first time and claiming the top spot in global pure electric vehicle sales [1][2]. Geely Auto’s new energy vehicle sales in 2025 were 1.6878 million units, a year-on-year increase of 90%; although it did not overtake Tesla, it has hit a record high [1][3].

In 2025, Geely Holding Group’s global total sales reached 4.116 million units, a year-on-year increase of 26%, among which new energy vehicle sales were 2.293 million units, a year-on-year increase of 58%, with a new energy penetration rate of 56% [1]. Geely Auto (excluding sub-brands such as Volvo) achieved total sales of 3.0246 million units in 2025, a year-on-year increase of 39%, exceeding its annual target of 3 million units [1][4]. This achievement makes Geely one of the few traditional automakers in the world that outperformed the industry overall in both the ICE and new energy vehicle tracks [5].

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Geely Auto has adopted a balanced strategy of

rather than a simple “shift from ICE to new energy” approach. This strategic choice is based on the following considerations:

As early as 2020, Geely released the “2025 Smart Geely” strategy, covering the construction of intelligent system capabilities centered on “one network and three systems”. Although the outside world was skeptical of this strategy at the time, considering it too vague and insufficiently implementable, Geely persisted in long-term investment, and finally saw the concentrated realization of strategic outcomes in 2025 [5][6]. In 2025, Geely’s new energy penetration rate reached 56%, which is in sync with the industry development trend, meaning that Geely is no longer a traditional automaker that needs to rush to respond, but instead has gained control of its own pace in the electrification track [6].

Unlike most automakers that reserve intelligent technologies exclusively for new energy vehicles, Geely insists on synchronizing the deployment of cutting-edge technologies such as advanced driver assistance systems and intelligent cockpits to ICE models, meeting users’ dual demands for “power reliability” and “interactive intelligence” [4]. This strategy has enabled Geely’s ICE vehicle products to form a differentiated advantage in homogeneous competition, successfully defending its core business and cash flow, and providing a solid backing for its new energy business expansion [6].

In 2025, Geely clarified its integration direction through the Taizhou Declaration and carried out internal resource optimization and adjustments throughout the year. The most iconic events were the merger of Zeekr and Lynk & Co, and Zeekr’s official return to Geely Auto at the end of the year to complete the architecture closed-loop [3][7]. This series of integration measures reflects Geely’s strategic adjustment from “multi-brand expansion” to “efficiency and collaboration”:

The previous mode of “individual advancement” or “internal competition” among various brands has been replaced by “corps operations” with clear positioning and complementary collaboration. After integration, the Zeekr Technology Business Group has clarified its dual-brand strategic division of labor: Zeekr focuses on the luxury pure electric market, while Lynk & Co focuses on high-end hybrid and trendy technologies, forming a three-dimensional firepower network covering the price range of RMB 150,000 to 800,000 [7]. This collaborative division of labor effectively avoids internal friction and forms a precise combination covering different market levels.

In 2025, Geely implemented the Taizhou Declaration and achieved new leaps in comprehensive new energy breakthrough, global AI technology empowerment, and high-quality global rooting under the strategic synergy of “One Geely” [1]. Through internal resource integration, Geely has centralized and allocated resources such as technology, procurement, and production that were scattered among various brands, significantly improving overall operational efficiency.

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Geely Auto has formed a

:

Brand	2025 Sales	Year-on-Year Growth	Market Positioning	Representative Models
Geely Galaxy	1.24 million units	150%	Mainstream new energy market (RMB 100,000-200,000)	Xingyuan, E5, Starship 7, M9
Zeekr	224,000 units	1%	Luxury pure electric market	Zeekr 9X, Zeekr 009, Zeekr 7X
Lynk & Co	350,000 units (including new energy)	23%	High-end hybrid and trendy technology	Lynk & Co 900, Lynk & Co 08 EM-P

As the fastest new energy brand in China to reach annual sales of 1 million units, Geely Galaxy took only 29 months to achieve 1 million sales from the launch of its first model, Galaxy L7, in May 2023, setting a new industry record [6]. Galaxy Xingyuan has achieved monthly sales exceeding 40,000 units for 7 consecutive months, with cumulative sales exceeding 530,000 units, firmly ranking first in sales of all-category models; Galaxy E5’s annual sales exceeded 160,000 units, continuing to lead the 150,000-yuan-class pure electric SUV market [4]. The success of the Galaxy brand reflects the concentrated release of Geely’s system capabilities in the mainstream market.

The Zeekr brand continues to exert efforts in the luxury new energy market: Zeekr 009 firmly ranks first in sales of luxury MPVs priced above RMB 400,000 in China, and Zeekr 9X has become the top-selling large SUV priced above RMB 500,000, with an average transaction price of over RMB 530,000 [4]. The Lynk & Co brand has achieved upward brand development through high-quality development: its flagship model, Lynk & Co 900, delivered over 50,000 units within 6 months of launch, with an average price of over RMB 335,000, and has continuously ranked among the top three high-end full-size hybrid SUVs [4]. After the merger, the two brands have formed a three-dimensional product matrix covering the price range of RMB 300,000 to 800,000.

Amid the wave of new energy transformation, Geely Auto’s core ICE vehicle business has shown

, which benefits from its unique resource allocation strategy:

Geely’s China Star Series achieved cumulative sales of 1.21 million units in 2025, exceeding 1 million units for three consecutive years, with a year-on-year growth of 3% [1][4]. Against the backdrop of the overall decline in industry ICE vehicle sales, the 3% counter-trend growth is indeed remarkable. This achievement stems from Geely’s continuous technological investment and intelligent upgrading of ICE vehicles, enabling them to possess intelligent capabilities comparable to new energy vehicles while maintaining traditional power reliability.

Geely has not simply made “subtractions” to its traditional business, but has endowed traditional energy products with new vitality through technological upgrading. According to analysis, Geely is one of the few enterprises that truly promotes technological upgrading and intelligent development in an equal and synchronous manner [5]. This balanced resource allocation strategy enables ICE vehicle products to continuously meet the needs of specific user groups, while also providing stable cash flow support for the enterprise’s new energy transformation process.

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Geely has built a

to meet the differentiated needs of global markets [1]:

Relying on the Geely Yaotong Battery Industry Group, it has unified the brand of Shendun Jinzhuan Battery, perfectly combining safety with high fast-charging capability and long service life [4]. The Zeekr brand focuses on the high-end pure electric market, and its products have entered more than 40 mainstream global markets [4].

The Thor AI Hybrid 2.0 system has set a new high in thermal efficiency, among which the Thor EM-i mass-produced hybrid engine has a thermal efficiency of up to 46.5% (surpassing BYD’s 5th-generation DM-i’s 46.06%), and the Thor Alcohol-Hydrogen EF engine has an even higher thermal efficiency of 48.15% [4][5]. The EM-i Thor hybrid system equipped on Galaxy Starship 7 has formed effective competition with BYD’s DM-i series with its technological advantages.

Geely adheres to the “Global AI” strategy, deploying the Qianli Haohan Advanced Driver Assistance System, Eva Intelligent Agent, and Flyme Auto 2 Intelligent Cockpit from flagship models to mainstream models, promoting intelligent mobility from the laboratory to users’ daily lives [4]. It is worth noting that Geely also synchronously empowers ICE vehicles with intelligent technologies, forming a differentiated competitive advantage.

In terms of resource allocation, Geely shows a

, while maintaining basic investment in ICE vehicle technologies:

With the increase in new energy penetration rate, Geely has gradually allocated more R&D resources to core technology fields such as three-electric systems, intelligent driving, and internet of vehicles. In the first three quarters of 2025, Geely Auto achieved operating revenue of RMB 239.5 billion, a year-on-year increase of 26%; core net profit attributable to parent company reached RMB 10.62 billion, a year-on-year increase of 59% [6]. The continuous improvement of financial performance provides solid support for R&D investment.

Geely ranks first among Chinese automakers with 1,562 publicly disclosed safety patents [4]. The Global Comprehensive Safety Center launched in 2025 holds five Guinness World Records, and multiple models have received five-star safety ratings in Euro NCAP evaluations. This continuous investment in safety has become the core competitiveness that enables Geely’s products to enter global markets.

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Geely has currently built a

: five design centers, five engineering R&D centers, five testing regions, five energy technology forms, and five AI intelligent ecosystems [4]. This global resource allocation capability enables Geely to transform from a rule follower to a rule leader.

In overseas markets, Geely adopts a

:

Geely Galaxy E5 has entered more than 40 countries and regions worldwide, and has topped the sales list of pure electric C-class SUVs in Brazil for four consecutive months; Zeekr 009 has become the sales champion of luxury pure electric MPVs in Thailand and Malaysia [4]. In 2025, Geely’s new energy vehicle exports exceeded 120,000 units, and the proportion of new energy in overseas business continues to increase [3][4].

In the Middle East and African markets, Geely’s first CKD plant, the Egyptian BAMC plant, was successfully put into operation and rolled out two global million-selling models, Coolray and Emgrand; in Central Asia, Kazakhstan has become Geely’s first country to deploy dual general agents, dual plants, and dual energy forms, simultaneously promoting localized production of new energy and ICE vehicles [4].

Geely has deepened its strategic cooperation with Renault Group in Brazil, jointly investing 3.8 billion reals to establish a joint venture, and plans to realize localized production of Geely Galaxy Starship 7 EM-i in the second half of 2026, marking Geely’s official transition from product overseas expansion to a new stage of “technology + supply chain + manufacturing” system overseas expansion [4].

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Geely Auto has set its 2026 annual sales target at

, among which the new energy target reaches [1][4]. This means that Geely will further increase the proportion of new energy sales, with the new energy penetration rate expected to exceed 64%.

In 2026, Geely will continue to deepen the strategic depth of “simultaneous development of ICE and new energy vehicles” through the intensive launch of approximately , and accelerate the global expansion of high-value models [4]. Among them, Geely Galaxy is actively exploring the mid-to-high-end market, and the first model of its high-end MPV product series, Galaxy V900, is equipped with extended-range technology, marking Geely Galaxy’s official entry into the extended-range market [2].

Based on the 2025 strategic layout and 2026 targets, Geely’s resource allocation for ICE and new energy product lines is expected to show the following trends:

Field	Resource Allocation Trend
New Energy R&D	Continue to increase investment, focusing on breakthroughs in cutting-edge technologies such as solid-state batteries and high-level intelligent driving
ICE Vehicle R&D	Maintain basic investment, focusing on intelligent upgrading rather than developing entirely new platforms
Capacity Allocation	Increase the proportion of new energy production capacity, while keeping ICE vehicle production capacity stable to meet segmented market demands
Channel Resources	Accelerate the expansion of new energy channels, and gradually transform ICE vehicle channels into intelligent experience centers

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After releasing the “2025 Smart Geely” strategy in 2020, Geely persisted in investment for five years, and finally saw the concentrated realization of strategic outcomes in 2025 [5][6]. This long-term strategic resolve is rare in the automotive industry, providing stable strategic guidance for the enterprise to navigate cyclical fluctuations.

Unlike most automakers that aggressively shift to new energy, Geely’s “Dual Strength in ICE and New Energy” strategy effectively balances short-term performance pressure and long-term transformation goals. The stable cash flow provided by the ICE vehicle business supports the high-intensity investment in the new energy business, while the rapid growth of the new energy business lays a foundation for the enterprise’s future development.

From the Taizhou Declaration to the merger of Zeekr and Lynk & Co, Geely has demonstrated the organizational execution and systematic integration capability of a large automotive group during a strategic adjustment period [3][7]. This capability is the key guarantee for Geely to achieve scale leap.

As the new energy target increases from 1.68 million units to 2.22 million units, Geely needs to invest more in new model R&D, capacity expansion, channel construction, and other aspects. How to accelerate new energy expansion while maintaining the ICE vehicle core business will be the core challenge facing Geely.

Although Zeekr and Lynk & Co have achieved breakthroughs in the high-end market, in the face of continuous efforts from competitors such as Tesla and BYD, as well as the continuous influx of new power brands, whether Geely’s high-endization strategy can continue to be effective remains to be observed.

As overseas business upgrades from trade export to “system overseas expansion”, Geely needs to accumulate more experience in overseas localized production, supply chain system construction, brand operation, and other aspects, which puts higher requirements on the enterprise’s global management capability [4].

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The

adopted by Geely Auto in resource allocation for its ICE and new energy product lines is, in essence, a systematic resource allocation plan based on long-termism. Through strategies such as empowering ICE vehicles with intelligent technologies, multi-brand layout for new energy, and collaborative global development, Geely has successfully achieved simultaneous breakthroughs in both tracks: new energy vehicle sales surged 90% year-on-year, while its core ICE vehicle business achieved counter-trend growth of 3% [1][4][6].

The core logic of this strategy lies in:

. The ICE vehicle business provides stable cash flow and user base, serving as a “safety cushion” for new energy transformation; the new energy business carries the main driving force for the enterprise’s future growth, and feeds back the intelligent upgrading of ICE vehicle products through technological innovation.

Looking forward, with the setting of the 2026 sales target of 3.45 million units, Geely will further tilt resources towards the new energy field, but the balanced strategy of “Dual Strength in ICE and New Energy” is expected to continue. For traditional automakers undergoing electrification transformation, Geely’s practice provides important reference value: strategic resolve, organizational execution, and systematic resource allocation are the key capabilities to navigate industry transformation.

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[1] Securities Times Network - Five Consecutive Years of Rapid Growth! Geely Holding’s 2025 Total Sales Reach 4.116 Million Units (https://www.stcn.com/article/detail/3582972.html)

[2] Securities Times Network - 2025 Automobile Enterprise “Year-End Assessment” Results Released (https://www.stcn.com/article/detail/3569469.html)

[3] Beijing News - 2025 Auto Market: Intensified Sales Differentiation: Who is Leading? Who is Falling Behind? (https://m.bjnews.com.cn/detail/1767851742169336.html)

[4] Sina Finance - Crossing the 3.02 Million Sales Milestone: Geely Auto is Reshaping the World with Hardcore Technology (https://finance.sina.com.cn/jjxw/2026-01-04/doc-inhfcxwp8802496.shtml)

[5] Huxiu Network - 30,000-Word Long Article: The World Begins to Reward Those Who Do Hard and Right Things (https://m.huxiu.com/article/4822452.html)

[6] Sina Finance - Surging to 3 Million Units and Breaking into the Global Top 10, What Will Geely Auto Rely on to Continue Accelerating in 2026? (http://finance.sina.com.cn/stock/t/2026-01-07/doc-inhfnemv7624422.shtml)

[7] NetEase - Behind 4+ Million Sales: Geely’s Systematic Leap and Global Advancement in 2025 (https://www.163.com/dy/article/KJ3D79EC05477C7Y.html)