Geely Automobile reported a 28 per cent rise in net income to 4.8 billion yuan between July and September, as overseas growth helped the carmaker absorb a sharp retreat in its domestic sales. Third-quarter revenue rose 10 per cent to 99 billion yuan.
The result followed a marked shift in Geely’s sales mix during the first nine months of 2026. Its exports climbed 169 per cent year on year to 797,670 units, while domestic deliveries fell 23.3 per cent to 1.44 million vehicles.
Geely said sales had been driven by exports and a “greater contribution of high value products”.
The company said core net profit per vehicle rose 37% to RMB 6,664, while gross margin reached 18%. Nine-month core net profit attributable to owners of the parent rose 41% to a record RMB 14.9 billion. In the first nine months accumulated, profit advanced 7% to 1.874 billion euros (13.928 billion yuan).
The pressure at home extends across the industry. Chinese automotive groups sold 15.3 million cars domestically in the first nine months of 2026, a 21.7 per cent year-on-year decline.
Nick Lai, JPMorgan’s head of auto research for Asia-Pacific, said carmakers on the mainland were making only about 5,000 yuan per vehicle on average. He said overseas margins could reach 20,000 yuan, four times as much, because Chinese cars often sold at higher prices abroad.
“Sales outside China are offering them a cushion against a big downturn at home,” said Ivan Li, a researcher at Loyal Wealth Management in Shanghai.
Geely has also taken a step to expand its manufacturing footprint in Europe, announcing a joint venture with Ford in July to operate the Almussafes factory.
BYD’s figures point to the same divide between overseas growth and weakening mainland demand. It delivered 1.34 million units to overseas customers from January to September, up 92.7 per cent year on year, while its mainland sales fell 30.2 per cent to 1.79 million vehicles.
BYD posted net profit of 10 billion yuan (US$1.5 billion) in the three months ending September, 28 per cent higher than a year earlier. Its third-quarter revenue grew 13.6 per cent to 211.5 billion yuan.
The China Passenger Car Association estimated in September that Chinese carmakers would deliver 12 million units overseas in 2026, up 44 per cent from last year’s 8.3 million.
The export push comes with a harder test for smaller electric-vehicle makers. Stephen Dyer, Asia-Pacific leader of the automotive and industrial practice at AlixPartners, predicted in June that only seven of the 30 Chinese carmakers focused solely on EVs would be able to break even by 2030.
Comments (0)