Selling cars in China yields no profit… Geely Auto generates 93% of Q3 earnings from exports

*This content was translated by AI.View Original

As Geely Auto announced its operating results for the third quarter of 2026, it was revealed that finished vehicle sales in China's overheated domestic market, where intense price competition is unfolding, are generating virtually no profit.

Geely Auto officially stated that it recorded total revenue of 99 billion yuan (approximately 19.305 trillion won) and core net income attributable to shareholders of the parent company of 5.21 billion yuan (approximately 1.0159 trillion won) in the third quarter of 2026. During this period, total sales reached 812,500 units; however, a close examination of its financial structure revealed that the majority of operating profit was generated through overseas exports.

In fact, during the third quarter, Geely Auto's export volume reached 343,700 units, accounting for approximately 39.8% of total sales. However, the net income generated through these overseas exports was a substantial 4.84 billion yuan (approximately 943.8 billion won), approaching roughly 92.9% of the total net income of 5.21 billion yuan. Consequently, despite domestic sales in China accounting for more than 60% of the total volume, the contribution of domestic revenue was limited to just around 7%.

This extreme disparity in profitability stems from the severe cutthroat competition and price-cutting pressure prevalent within the Chinese automotive market. Geely, which is strengthening its overseas offensive by leveraging new energy vehicles (NEVs), has significantly raised its annual export target for this year from the previous 640,000 units to a scale of 920,000 units. Industry specialist media and analysts diagnose that the profitability limitations in the domestic market will persist until the excessive competitive structure in China is resolved and restructuring fully takes hold.

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*This content was translated by AI.View Original