Gasgoo Munich- China's auto market turned in a report card of "cold at home, hot abroad" for the first half of 2026. Data from the Ministry of Industry and Information Technology and the China Association of Automobile Manufacturers shows production and sales reached 14.993 million and 15.017 million units respectively, down 4% and 4.1% year-on-year. Retail sales of passenger vehicles totaled roughly 8.75 million, a slump of about 20%. Domestic pressure is mounting, yet exports emerged as the critical variable: overseas shipments jumped 65.3% to 5.096 million units in the first half, with new-energy vehicle exports soaring 2.2 times to 2.355 million.Against this backdrop, sales figures disclosed by Geely Holding Group on July 15 grabbed the market's attention. Total sales hit 1,934,842 units, a record high for the period. New-energy model sales climbed 10% to 1,100,893 units, pushing the NEV penetration rate to 56.9%. While the broader industry stumbled, Geely Holding managed to buck the trend — a performance driven by its aggressive moves in new-energy technology, overseas expansion, and brand consolidation.NEV Penetration Nears 57%Geely Holding's 56.9% penetration rate outpaces the industry average of 49.6%. For the listed Geely Auto — which encompasses the Geely, Lynk & Co, and ZEEKR brands — first-half NEV sales reached 799,454 units, representing a 56% penetration rate.Image source: Geely Holding GroupBreaking it down by sub-brand, ZEEKR delivered 178,000 units in the first half, surging 97% to lead growth among luxury new-energy brands. Lynk & Co sold 144,000 units, with NEVs accounting for 65% of the mix. Geely Galaxy moved 520,000 units, while Volvo Cars posted global sales of 325,000 units with a 50% NEV penetration rate.Behind the sales surge lies sustained investment in technology. In early 2026, Geely Holding unveiled its "One Geely, Fully Leading" 2030 strategy, aiming to boost competitiveness across seven core technical verticals: smart driving, smart cockpits, electronic architecture, vehicle architecture, batteries, electric drives, and super-hybrid systems. According to frontline staff in Geely's smart driving division, the implementation of the WAM model has tangibly improved iteration efficiency, with the company continuing to ramp up R&D spending.Image source: Geely GalaxyIn electric drivetrains, Geely introduced the "Thunder 16-in-1" smart electric drive, integrating 16 components including the motor, controller, and reducer. The Galaxy TT Ultra, equipped with this system, boasts a combined output of 425kW and accelerates from zero to 100 km/h in 3.8 seconds."We broke a world record," said Li Chuanhai, vice president of Geely Auto Group and president of the Geely Auto Research Institute, at a July 16 launch. The Geely Galaxy TT, fitted with the Thunder 16-in-1 drive, achieved an ultra-low consumption of 8.20 kWh/100km during a challenge around Qinghai Lake — setting a Guinness World Record for the lowest energy consumption by a mass-market pure electric sedan on the route.On the charging front, the Galaxy TT Ultra supports 6C charging rates, adding 400 kilometers of range in just 11 minutes. Public reports indicate Geely has integrated over 5,800 ultra-fast charging piles to support the 6C battery infrastructure.On the product front, the Geely Galaxy TT made its global debut in Shanghai on July 6, positioned as a C-segment AI pure electric sports sedan. Built on an 800V high-voltage platform, the model offers a CLTC range between 540 and 725 kilometers.Half-Year Exports Top Full-Year 2025 TotalOverseas markets have emerged as Geely's most powerful growth engine this half, with its global share expanding rapidly. Geely Auto exported 474,228 units in the first half — a 158% surge that eclipses its total exports for all of 2025 in just six months. Of that, NEV exports skyrocketed 585% to 277,189 units, making up 58% of the total.Image source: Geely AutoDriving this export boom is a strategic pivot. Geely is accelerating its "3+2" global market strategy covering Europe, Eastern Europe, ASEAN, Latin America and Africa, and the Middle East and Asia Pacific. By the end of 2026, the company plans to nearly double its overseas network to 2,200 outlets. Consequently, the full-year export target has been raised from 750,000 to 1 million units.At the full-year earnings briefing in March, Geely Auto Group CEO Gan Jiayue made it clear: in 2026, the group will prioritize resources for international business. The strategy focuses on "moving products out, integrating supply chains in, and lifting brands and technology up" to drive overseas expansion.Geely is also reducing its reliance on any single market. Public data shows that from January to April 2026, registrations for the main Geely brand surged 736.4% in ASEAN, 115.6% in Eastern Europe (excluding Russia), and 329.0% in Latin America. Growth in Europe was particularly sharp, nearly quadrupling in the first quarter.In terms of its export model, Geely favors asset-light partnerships. It is leveraging Proton's base for localized production in Southeast Asia, teaming up with Renault for new models in South America, and tapping Volvo's compliance expertise and channel resources in Europe. This multi-point approach spreads risk, ensuring Geely's overseas business isn't hostage to a single market."One Geely" Moves from Strategy to ExecutionBeyond the sales figures, Geely's organizational restructuring in the first half is equally noteworthy.Image source: Geely Holding GroupOn June 13 at the 2026 China Auto Chongqing Forum, Geely Holding Chairman Li Shufu announced plans to streamline or shut down redundant entities within Geely Auto Group, concentrating resources to strengthen the core listed platform. Li aims to transform "One Geely" from a strategic consensus into tangible advantages in systems, governance, and global survival capabilities.This stance aligns with the "One Geely, Fully Leading" 2030 strategy announced earlier this year. The plan calls for strengthened top-level coordination and global collaboration to create a unified "one board" strategic landscape, with a goal of exceeding 6.5 million in global sales by 2030 to crack the top five global automakers. Li Shufu also noted that the company has already begun an orderly succession process.First-half data suggests the brand matrix is starting to click. The integration of ZEEKR and Lynk & Co is progressing, with the Galaxy series under the Geely brand shouldering the NEV load while the China Star series holds the fort for internal combustion engines. Brand positioning is becoming clearer, avoiding the internal cannibalization of the past. Yet brand consolidation is a marathon, and the depth and efficiency of this synergy remain to be seen.From an industry perspective, Geely Holding's growth against a sluggish market is impressive, with its NEV penetration and export speed leading the pack among major automakers. However, the reality is that total sales for the first half are roughly flat compared to last year. The growth bottleneck in the domestic market remains a pressing challenge.The sharp rise in NEV penetration reflects a structural shift where the internal combustion engine base is contracting faster than new-energy growth can fill the gap. This isn't unique to Geely; it's a common growing pain for traditional automakers in transition.Meanwhile, explosive overseas growth provides a crucial buffer, though global operations bring their own uncertainties — shifting tariffs, currency volatility, and geopolitical headwinds are tests every Chinese exporter faces. Geely is mitigating these through localized production and diversified channels, but the actual effectiveness of these strategies will be tested in the second half.In the second half, market reaction to new models like the Galaxy TT, ZEEKR's shift from mere product exports to true brand building overseas, and the organizational execution of the "One Geely" integration will be key metrics for judging the depth of Geely's transformation. The pace and quality of these efforts will directly determine whether the company hits its full-year sales targets.
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