"EV giant BYD gets all the credit for the growth of the Chinese electric vehicle (EV) market. As it passed Tesla Inc. ( NASDAQ: TSLA) based on global EV sales last year, it hit the top of its game. However, the number two EV company in China recently had a breakout quarter. It showed that not every Chinese EV manufacturer has to suffer in what has become a brutally cutthroat market."
"Geely has an EV market share in China of about 8.8%, which puts it second behind BYD's 26% (based on first-half sales). Geely is well ahead of Tesla, which had a market share of 4.4% for the same period. In the third quarter, Geely net income rose 59% year over year to $538 million. Revenue was up 27% to just over $12 billion. The company sold 761,000 vehicles, up 43%."
"It is hard to know what to make of the Chinese EV market. There are, by some counts, over 100 EV companies in the country. About 400 EV companies failed between 2018 and this year. Consulting firm McKinsey expects that to drop to 50 in a few years. This is the primary reason for recent price wars. The financial cost of the fight for survival is often huge losses."
BYD leads the Chinese EV market, but Geely achieved notable gains and holds roughly 8.8% market share versus BYD's 26%. Geely reported third-quarter net income up 59% to $538 million, revenue up 27% to just over $12 billion, and unit sales rising 43% to 761,000, prompting a 2025 sales target of 3 million units. Geely's over‑the‑counter stock is up 16% year‑to‑date. The Chinese EV sector remains overcrowded, with around 100 firms and about 400 failures since 2018; McKinsey expects consolidation to roughly 50 players, fueling price wars and heavy losses. Export challenges and tariffs complicate global expansion.
Read at 24/7 Wall St.
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