Geely is barometer of China’s auto sector
Anjani Trivedi | 24 Aug 2018 00:30
China, the world’s largest car market, is central to big automakers’ strategies. Now the market is slowing, and competitive pressures are mounting: Think of it as a superhighway being forced into a single lane.
After months of booming sales that beat expectations and compelled analysts to raise targets, volume growth is dwindling and price erosion is setting in.
The outlook for the nation’s biggest homegrown automaker, Geely Automobile Holdings Ltd – which shares a parent with Swedish carmaker Volvo – helps show where the market is headed.
Geely reported blowout earnings (again) on Aug 22, with a 50% increase in the first half, and said it’s on track for a sales target of two million units by 2020 or sooner. While profit rose, so did inventories – up almost 30% yearon- year.
Geely has outpaced much of the market by churning out a wide variety of models, especially the small SUVs and hybrids that are most in demand.
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