Geely Is Now The Third Highest-Earning Manufacturer In China

Geely Automobile, parent company to Volvo, Lotus and more, has become the third highest-earning automaker in China, surpassing rivals like Nissan, Honda and Toyota.

The car maker reported a 54 percent increase in net income for the first six months of 2018, Bloomberg reports, saying that it will beat its target of 1.58 million units for this year. Geely currently trails Volkswagen and General Motors in China as far as sales are concerned.

Geely is seeking success on a global scale, focusing on new technologies like electrified powertrains and automation, but also keeps an eye on leadership in its home market.

Geely has been expanding with brands such as Lynk & Co, which offers models jointly developed with Volvo.

“In view of an even stronger new products pipeline ahead, the Group should be in a good position to secure higher market share in China’s passenger vehicle market in the near future,” Geely said in its filing.

The company’s mainland market share increased to 6.4 percent during the first half of the year, from 5 percent in 2017. Geely sold 766,630 vehicles during that period, beating Nissan’s 720,447. Geely sold a total of 1.25 million vehicles in 2017.

Li Shufu, the Chinese billionaire who controls Geely, has been expanding the company for some years now. After buying Volvo from Ford, he also acquired a controlling stake in Lotus and Proton. Li also bought a 9.7 percent stake in Daimler, making him the largest shareholder in the German manufacturer.

Geely plans to launch Lynk & Co in Europe soon, marking the start of its expansion plans. The plan is to sell their vehicles in the region by 2020.

The company’s performance comes at a time when the Chinese market slowed down for a second consecutive month in July, as a slowing economy and the trade dispute with the United States kept customers away from showrooms. The market dropped by 3.7 percent in June and by 5.4 percent in July.