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The Markets
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Manufacturing & engineering

China's Geely Automotive revs up profits 575%

China's Geely Automotive (OTCMKTS:GELYY), owner of Volvo, Polestar and Lotus in the West and regional brands such as Proton and Zeekr, announced a 575% increase in profits in the first half of the year.

Revenue of RMB 107.305 billion ($15 billion) was up 46.6% year on year, while net profit jumped to RMB 10.598 billion ($1.5 billion).

The gains come amid a recent rise in tariffs against Chinese EVs in the US and European Union, where governments are trying to protect local automakers from cheaper Chinese imports.

In the US, 100% import duties were imposed in May, while the EU followed in June by hiking its own tariff barriers.

Geely and rivals are responding with plans to shift more production inside the tariff zones, with Geely upping investment into Belgium and South Carolina.

In the first half of 2024, the Hangzhou-based group delivered 955,730 vehicles, up 41% on a year ago.

Sales outside of China reached 197,428 vehicles, year-on-year growth of over 67% to a new high for the company, which led the group to increase its annual export sales target from 330,000 to 380,000.

"Tesla has been struggling of late to generate significant profits from making EVs. No such issues for China’s Geely Automotive," said Steve Clayton, head of equity funds at Hargreaves Lansdown.

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