Geely Automobile Holdings Ltd

Chinese automakers are scouting locations for production bases in Europe after the EU signaled it will introduce local content requirements. Alfredo Altavilla, BYD's adviser for Europe, told Reuters at the opening ceremony of a Denza premium brand dealership in Turin, Italy, that companies are focusing their efforts on inspecting existing auto assembly plants, which can start production faster than building factories from scratch. The European Commission is drafting a "Made in Europe" policy that favors industrial parts and products made within the bloc, and is expected to set minimum local content thresholds for EVs sold in the region, possibly as early as next year. BYD aims to acquire existing plants, take full ownership and then retrofit them; its first European passenger car plant in Hungary is in the early stages of production, and the company is expected to select a second European site within the year. Altavilla said that to grow while meeting EU regulations, BYD will eventually need "three assembly plants and one battery plant" in Europe, adding that Spain and France offer "clearly simpler situations" and are the "most feasible" options. Italy is a "second-best" choice because Stellantis is reluctant to sell plants, he said. Chinese manufacturers have already begun partnerships to share production lines at underutilized European plants: Leapmotor is teaming up with Stellantis in Spain, Dongfeng Motor with Stellantis in France, Geely with Ford Motor in Spain, and Chery has bought a plant in Spain previously owned by Nissan.

Swedish automaker Volvo Cars said on the 17th that it plans to launch 13 new models by 2030. It will roll out six models for the Chinese market and seven for the European and American markets, expanding its lineup in an effort to revive sales. Through this, it aims to raise its EBIT margin from 3.5% in 2025 to above 8%, a long-standing target. The models for Europe and the United States will use Volvo's SPA2 and SPA3 vehicle platforms, while the models for China will be developed jointly with Geely Automobile, which is part of the same group. Chief Executive Officer Håkan Samuelsson said in a statement that this new model launch strategy is based on four distinctive strengths: regionally tailored product development, a leading position in electrification, synergies with Geely, and comprehensive customer services that go beyond the car itself.

Alphabet-backed robotaxi service Waymo has announced the expansion of its autonomous vehicles in Las Vegas, as well as a 2027 rollout of Waymo vehicles in Tokyo. In an official statement released on Monday, Waymo said it is rolling out its service in Las Vegas, where a majority of the fleet would comprise the Geely Automobile Holdings Ltd.-backed Zeekr's co-developed "Ojai" Robotaxis with Waymo's sixth-generation self-driving suite. Waymo says the service will be offered in an area spanning nearly 24 miles from Boulder Junction to Sahara Avenue and from Spring Valley to Winchester in Las Vegas, with plans to expand to other residents in the Clark County region. In a separate release, Waymo said it will be rolling out its unsupervised Robotaxis in Tokyo next year, contingent on securing regulatory approval from national and local authorities, as well as completing the ongoing validation of Waymo's technology. Waymo has partnered with taxi operator Nihon Kotsu as well as Japanese ride-hailing platform GO, and riders will be able to book rides in Tokyo via the Waymo app as well as the GO app once the service rolls out. Separately, Uber Technologies Inc. said it will expand and offer Robotaxis on its platform in Japan, with CEO Dara Khosrowshahi calling Japan a "terrific market" for the ride-hailing giant; Uber has signed an operational partnership with Japan's Hinomaru Kotsu Co. Ltd. to oversee fleet operations in Tokyo as the service eyes a late 2026 launch.

French auto giant Renault and Chinese peer Geely Automobile announced on the 15th that they will invest a further 319 million euros in Brazil through their joint venture, strengthening their partnership in that market. With this new investment, the two companies' total investment in Brazil from 2025 to 2027 will reach 899 million euros. According to Renault, the agreement will allow Geely to use Renault's existing plants and dealership network, while Renault will be able to raise utilization at its assembly plants and add large vehicles to its lineup. Under the new investment plan, Renault will begin producing its flex-fuel-capable four-wheel-drive hybrid system, Hybrid E-Tech, in Brazil starting in 2027. In Brazil, rival Chinese electric vehicle giant BYD is steadily building a foothold with affordable EVs and plug-in hybrids.

Volvo Cars has finalised an agreement with its parent company Geely Auto to become the exclusive distributor for the Lynk & Co new energy vehicle brand in Europe starting in January 2027. The deal follows a preliminary agreement signed at the end of March, and Volvo will take responsibility for Lynk & Co's commercial operations across Europe from the beginning of next year, using its own retailers and service network to distribute the vehicles. Volvo Cars said it will maintain clear brand differentiation with Lynk & Co while broadening its total consumer base and increasing sales and servicing business for its retail partners. Volvo Cars chief commercial officer Erik Severinson said the partnership combines Volvo's commercial infrastructure with Lynk & Co's brand and product proposition, while Lynk & Co International CEO Mo Wang said the two will work closely to turn the partnership into sustainable long-term growth. The business with Lynk & Co will be led by Martin Persson, reporting directly to Severinson, and Lynk & Co will continue to design, develop and certify its global product portfolio as part of the Geely Auto Group.

Geely Auto's Galaxy brand launched the Galaxy TT electric sedan in China on Sept. 10 at a limited-time starting price of 129,900 yuan, or roughly $19,170, according to CnEVPost. The entry version carries a 63.8-kWh lithium iron phosphate pack from CATL and delivers 640 km of range on the China Light-Duty Vehicle Test Cycle, with every trim in the lineup shipping an 800-volt architecture and 6C fast charging that moves the battery from 10% to 80% in about 11.8 minutes. The launch price landed 16,000 yuan below the August pre-sale figure, and the entry trim gained 100 km of range, while rear-drive models produce 245 kW, or 329 horsepower, and reach 100 km/h in 6.5 seconds. The sedan will not reach U.S. buyers: a China-built car faces a 2.5% base duty, the 100% Section 301 tariff imposed in 2024 and the 25% Section 232 tariff applied in 2025, landing a $19,170 sedan closer to $43,600 at the port, and the Commerce Department's Connected Vehicle Rule blocks cars with meaningful Chinese ownership or software ties starting with the 2027 model year. Geely-controlled Polestar said the Commerce Department declined its authorization covering new model variants from the 2027 model year onwards, while Volvo Cars, also controlled by Geely, was cleared in May after reworking how its vehicle data is governed and routed. Geely's exports rose 205% year over year in August to 110,094 vehicles, roughly 41% of total sales, while domestic volume fell about 25%, according to CnEVPost.

President Donald Trump said he would be open to Chinese automakers building vehicles in the United States with American workers, while pledging to maintain restrictions that have effectively shut Chinese-made cars out of the U.S. market. In a Fox News interview, Trump rejected reports that he could allow vehicles built in China to be imported, saying the domestic market could be "overrun" if existing restrictions were lifted, and drew a distinction between imports and Chinese companies manufacturing inside the U.S., comparing such investment with production by Japanese automakers. "If China wanted to come in, and open a plant to build their cars here, I'd be okay with it," Trump said, adding that Chinese manufacturers would need to hire American workers. The comments come ahead of a planned summit with Chinese President Xi Jinping in Washington, and follow similar remarks in January; Ford Chief Executive Jim Farley and Trump administration officials also held preliminary discussions earlier this year about a possible framework under which Chinese companies could manufacture cars in the U.S. with protections for domestic automakers, though no decisions were reached. The prospect remains politically contentious, with Senators Elissa Slotkin and Bernie Moreno introducing legislation backed by Ford, General Motors and the United Auto Workers that would restrict connected vehicles, software and hardware linked to China and other countries considered U.S. adversaries, and prohibit sales of connected vehicles from automakers more than 15% owned by Chinese entities.

BYD captured 35.4% of China's passenger new energy vehicle exports in August, while Tesla China fell to fourth place with 7.0%, according to China Passenger Car Association figures published by CnEVPost. BYD exported 183,746 passenger NEVs in August, up 130.8% from a year earlier and 5.8% from July, with its share climbing from July's 32.2%. Tesla China exported 36,119 vehicles, down 45.5% month over month, as its share fell from 12.3% in July and it dropped from third to fourth behind Geely and Chery. Through the first eight months of 2026, BYD shipped 1,126,797 NEVs abroad for a 33.9% share, against Tesla China's 331,443 and 10.0%. BYD now expects to sell more than 2.5 million vehicles overseas in 2027, a target disclosed in a Deutsche Bank research note after management's post-earnings call, and it lifted 2026 overseas guidance to between 1.9 million and 2.0 million vehicles from 1.3 million at the start of the year. Profit per vehicle sold overseas ran about 20,000 yuan, or roughly $2,950, in the first half despite currency headwinds, management said on the call.

China aims for 70% of new vehicles sold in the country to be electric or hybrid by 2030 under its latest five-year automotive industry plan, drafted by nine government agencies and published on Friday. The 15th Five-Year National Economic and Social Development Plan also targets 40% of new commercial vehicles sold by 2030 to be electric, while expecting several Chinese automakers to rise into the world's 10 largest carmakers and to play a bigger role in setting global automotive industry standards. Currently, BYD, SAIC Motor and Geely Automobile rank among the world's 10 largest automakers by sales last year, but still lag the top three of Toyota Motor, Volkswagen and Hyundai Motor Group. The previous plan in 2021 had targeted EVs and hybrids at 20% of new car sales by 2025, but China far exceeded that goal, with data from the China Passenger Car Association showing the share rose to 54% last year, and new energy vehicles most recently accounting for 65% of car sales in August. Although the plan sets no numerical target for autonomous driving cars, its emphasis on expanding the use of driverless vehicles is a positive signal for the industry, after China suspended approval of new Robotaxi permits for several months this year following system failures in Baidu's vehicles in Wuhan. China's domestic car market is facing challenges, with car sales in the first eight months of this year down 21%, while a prolonged price war erodes manufacturers' profit margins. Beijing has therefore issued more than half a dozen new standards and regulations, covering everything from door handles and driver-assistance technology to batteries, to raise safety levels, and said in the plan that it wants to push forward reform of automakers, encourage mergers and acquisitions, and open the way for inefficient manufacturers to exit the market to ease the industry's overcapacity problem. Battery technology and recycling are another key agenda item, with the plan calling for standards for new forms of battery cell technology such as solid-state batteries, as well as improving the recovery and reuse of key metals including lithium, cobalt and nickel.

Geely Auto Group announced the launch of the Geely TT under the Geely Auto brand in China, expanding its lineup with an electric sports sedan featuring 800V fast charging, standard LiDAR and an AI-powered cockpit. Alongside the standard trim, Geely launched the limited-edition TT Ultra, which delivers a combined maximum power of 425 kW and accelerates from 0 to 100 km/h in 3.8 seconds, with a chassis tuned by Lotus and a Handling by Lotus badge on each vehicle. Across the range, an 800V electrical architecture is paired with a CATL Shenxing TT battery supporting up to 6C fast charging, adding nearly 500 kilometers of driving range in 11 minutes. Built on Geely's GEA EVO electric architecture, the standard TT features rear-wheel drive, double-wishbone front suspension and five-link rear suspension, and it set a Guinness World Record with a continuous wet-road drift of more than 46 kilometers. All models come with LiDAR and the G-ASD advanced driver assistance system, while the Super Eva AI cockpit assistant supports multilingual interaction; at nearly five meters long with a 2,920 mm wheelbase, the TT offers a flat rear floor and a 23-speaker Flyme Sound system.

According to data released by the China Passenger Car Association (CPCA) on the 8th, August auto exports rose 77.5% year-on-year to 894,000 units. Although the growth rate slowed from July's 88.2%, BYD and Geely Automobile hit record highs. Meanwhile, domestic sales fell 23.7% to 1.55 million units, marking the 11th consecutive month of decline, with the rate of decline widening from July's 21.1%. Sales of electric vehicles (EVs) and plug-in hybrids (PHVs), which account for 64.7% of domestic sales, decreased by 10.1%, but exports in this segment accelerated with a 154.7% increase. Seres Group saw a sharp 44% drop due to intensifying competition in the domestic premium EV market and delays in overseas expansion. CPCA Secretary-General Cui Dongshu predicts that exports will reach 12 million units this year and increase to 18-20 million units annually by 2030.

Geely Riddara officially launched the right-hand-drive versions of its RD6 and RD6 ECON pickups at the Festival of Motoring in South Africa on August 28, marking the brand's entry into the Southern African market. Greg Maruszewski, Chief Operating Officer of Geely Auto South Africa, said the launch represents an opportunity to start a new conversation about what the South African bakkie can be. The vehicles impressed attendees with their off-road performance, and Riddara will next participate in a cross-border expedition from Johannesburg to Xai-Xai, Mozambique. Riddara has ranked No. 1 in China's new energy pickup market for four consecutive years since 2023, holding a 47.9% market share in July 2026, and also leads in new energy pickup sales in Thailand, Chile, and Uruguay. The RD6 offers 315 kW of power, 595 N·m of torque, and a payload capacity of 1,030 kg, with applications ranging from drone operations in China to mining in Chile.

Chinese automakers showcased a range of electric vehicles (EVs), hybrids, and pickup trucks at South Africa's biggest auto show, the WesBank Festival of Motoring, aiming to tap into growing demand for electric vehicles and challenge established rivals in the fiercely competitive pickup truck market. Changan Automobile and its partner Jameel Motors South Africa unveiled the extended-range EV Deepal S05 and the hybrid SUV Changan UNI-S. Dongfeng Motor's distributor E Auto Motor introduced the extended-range crossover Forthing Friday, the pure electric Friday, and the Chinese brand Kaiyi. BAIC unveiled its premium new energy vehicle ARCFOX, starting with the small electric SUV T1, which is set to go on sale in October. Meanwhile, Geely Automobile and Chery Automobile are entering the pickup truck market, where Toyota Motor, Ford Motor, and Isuzu Motors have long held sway, with Geely launching the BEV pickup truck Radar. Robert Gwengwe, CEO of WesBank, a unit of South African financial giant FirstRand Bank, said about 40% of the new cars financed by the bank last month were Chinese, a sharp rise from 0.01% in 2016.

Lotus Technology, the Geely-backed electric vehicle group, has finalized its acquisition of Lotus Advance Technologies, also known as Lotus UK, consolidating its UK sportscar production and engineering consultancy into a single entity. The deal was triggered by put options exercised by shareholders Geely International (Hong Kong) and Etika Automotive, who held 51% and 49% stakes respectively. Geely exercised its option in April 2025, and Etika followed in July 2025. Lotus UK, based in Hethel, Norfolk, includes the Hethel plant and Lotus Engineering, which provides consultancy services. CEO Qingfeng Feng said the move unifies the brand and supports the Focus 2030 strategy, with UK operations continuing as the company expands globally. This follows Geely's July export of Lotus-branded EVs to Canada under a new trade arrangement with China.

Jinbei Automobile disclosed its 2026 semi-annual report on the evening of August 26. In the first half of the year, it achieved operating revenue of 2.349 billion yuan, up 10.16% year-on-year; net profit attributable to shareholders of the listed company was 92.9128 million yuan, down 9.7% year-on-year; basic earnings per share were 0.07 yuan. The company plans to distribute a cash dividend of 0.1 yuan per 10 shares, tax included, to all shareholders. During the reporting period, the company's core holding enterprise obtained multiple nominations for seats, door panels, instrument panels and other components for models such as the BMW X7 and the mid-cycle refresh of the BMW 5 Series, with expected new orders generating full-lifecycle revenue of 3.085 billion yuan. At the same time, it entered Geely's supply chain, securing business for instrument panels, seats, air-conditioning assembly and other items, with expected new orders generating full-lifecycle revenue of 950 million yuan. In addition, Zhongtuo Technology obtained its first nomination for a CATL battery module component project, achieving a key breakthrough in the new energy business.

The 29th Chengdu International Automobile Exhibition was held from August 21 to 30 at the Western China International Expo City, reflecting the domestic auto industry's departure from years of price-driven involution and its full entry into a new cycle dominated by value competition, with technology popularization and scenario-based segmentation advancing in parallel. Leading independent brands such as BYD, Chery, and Great Wall Motor exhibited with full-brand, full-category product matrices occupying entire halls, while mainstream joint-venture brands including Lexus, Infiniti, Dongfeng Nissan, Yueda Kia, and Dongfeng Honda were collectively absent, and ultra-luxury brands like Rolls-Royce and Bentley also did not appear. Data from the China Passenger Car Association shows that in July 2026, the domestic retail penetration rate of new energy passenger vehicles climbed to 65.1 percent, breaking through the 60 percent threshold on a stable basis for the first time. At this year's show, core technologies previously reserved for million-yuan-level high-end models, such as 800-volt high-voltage fast charging, lidar-based intelligent driving, full-domain chassis control, and silicon carbide oil-cooled electric drive systems, were comprehensively extended to mainstream family models in the 200,000-yuan and 150,000-yuan classes. The new Lynk & Co 20 comes standard with an 800-volt high-voltage platform, 6C ultra-fast charging, a lidar intelligent driving system, and a new-generation 16-in-1 silicon carbide oil-cooled electric drive. Geely Auto launched the Xingrui L Plus and the Boyue L i-HEV lidar version, and SAIC Roewe's Jiayue 07 made its first public appearance. IM Motors officially released its new product strategy, NEXT 2028, built on three core proprietary technology pillars: the NEO three-electric architecture, an aviation-grade safety full-by-wire chassis, and the IM Claw intelligent agent. BYD's second-generation blade battery and full-domain God's Eye intelligent driving system achieved deployment in high-difficulty scenarios such as narrow-space parking and customized parking. Joint-venture brands showed insufficient new product momentum and a slowing transformation pace. The Freelander brand, jointly created by Chery and Jaguar Land Rover, made its debut, and a small number of joint-venture new products such as the Buick GL8 Lushang and SAIC Volkswagen's all-new ID.ERA appeared, but their overall presence and product strength struggled to compete with the intensive technology and product iterations of independent brands.

Geely Automobile Holdings delivered record half-year revenue and higher core profit, yet its stock still trades at a discount to fair value on Simply Wall St's valuation checks. The company's P/E of about 10.4x sits below the auto industry average of roughly 13.1x and well under the peer group average of about 34.4x, while a tailored Fair Ratio model suggests a fair P/E of about 11.8x. Despite a 111.2% share price gain over the past three years and a recent leadership reshuffle, the stock screens as undervalued in all six valuation tests. The key debate is whether Geely can sustain earnings to prompt a re-rating or whether execution concerns keep the discount in place.

Geely Automobile Holdings has entered a significant leadership transition, with a new CEO, chairman and vice chairman taking office alongside the resignation of its long-serving chairman. The change coincides with the latest half-year earnings release. The most followed narrative for Geely Automobile Holdings places fair value at HK$29.27 compared with the last close of HK$18.75, implying a sizeable valuation gap. Geely's strategy of launching 10 new NEV models in 2025 and continuing global expansion is likely to impact revenue positively, while integration of smart driving technologies is expected to enhance product offering and potentially lead to higher average selling prices and improved net margins. However, the company still faces pressure from intense NEV competition and execution risk around integrating Zeekr and Lynk & Co.

Alphabet's Waymo has built a custom application-specific integrated circuit for its robotaxis that is already in production in its latest generation, reducing its reliance on Nvidia and Advanced Micro Devices. The chip speeds up sensor data processing and the AI models its vehicles use to read and respond to their surroundings, and runs above 1,000 TOPS, putting it level with Nvidia's latest autonomous driving systems on that measure. It is made on Taiwan Semiconductor's 5-nanometer process. Waymo's fleet has largely been Jaguar vehicles retrofitted with autonomous technology, but the robotaxi it launched with Geely's Zeekr is now being fitted with the new chip. Waymo said the shift toward purpose-built vehicles may cut costs while giving riders more space.

Tesla's Model Y has lost its position as China's best-selling car model to Geely's Xingyuan electric hatchback. Geely's Xingyuan led the market with nearly 197,500 vehicles sold during the six months through July, while Tesla's Model Y ranked second with more than 180,000 sales. The Xingyuan starts below 100,000 yuan, or about $14,820, compared with the Model Y's price range of 263,500 yuan to 313,500 yuan. Despite the price gap, Tesla still outsold competing vehicles from Li Auto, Xiaomi and BYD. New-energy vehicles accounted for 65.1% of new passenger-car sales in July, up from 54% a year earlier.

Geely Automobile Holdings Limited reported total sales of 250,161 vehicles in July, a 5% year-on-year increase and its fifth consecutive month of both year-on-year and month-on-month growth. The Geely brand contributed 197,942 units, Lynk & Co delivered 16,382 units, and Zeekr added 35,837 units. Combined new energy vehicle sales across the three brands reached 160,165 units, a 23% increase from the same period last year. Sales outside Mainland China hit a new monthly high of 106,663 vehicles, with exports surging 202% year on year and new energy vehicle exports soaring 616% to 62,604 units, accounting for 59% of total exports in July.

Geely Auto has announced it has obtained China's first certification certificate for a combined driver assistance safety management system for automotive production organizations. This certification is a mandatory compliance requirement directly tied to market access. The certificate, numbered 001, was obtained at a critical juncture as the mandatory national standard for safety requirements of combined driver assistance systems for intelligent connected vehicles is about to be implemented. With just over half a year remaining before the full enforcement of the mandatory standard in January 2027, all vehicle models on sale across the industry must complete this system certification before they can be sold. As one of the core drafting units of this mandatory national standard, Geely Auto incorporated its vast amount of real-world testing data from complex domestic road conditions into the regulatory clauses, and completed internal process alignment during the standard framework development phase, thereby securing the first certification as soon as the standard took effect. Currently, the penetration rate of Level 2 driver assistance systems in new vehicles in China has exceeded 70 percent, and the installation rate of advanced navigation-assisted driving has surpassed 30 percent. This system certification is effectively a compliance permit for automakers' intelligent vehicle models, forcing the entire industry chain to address shortcomings in the full lifecycle management of intelligent driving safety.

CaoCao Inc. has officially launched Robotaxi testing without a safety driver behind the wheel in Hangzhou’s Binjiang District. The testing uses a station-triggered dispatch mechanism under real-world urban traffic conditions to validate driverless operations and service reliability on a limited and controlled scale. All vehicles are connected to the CaoCao Zhixing RAS Remote Safety Service Platform, which provides continuous safety monitoring, emergency call response, real-time remote assistance, and incident handling. CaoCao became the first company in Hangzhou approved for road testing of intelligent connected vehicles without onboard safety drivers in April this year and has deployed a fleet of around 100 Robotaxis in the city. The company is advancing autonomous driving services as the primary commercialization platform for Geely Holding Group’s RoboX strategy, using an end-to-end large model architecture and transitioning toward driverless operations ahead of the mass production of its purpose-built Eva Cab Robotaxi in 2027.

Ford Motor and Tesla reported their latest quarterly revenues, with Ford posting $43.3 billion for the first quarter of 2026 and Tesla reporting $28.2 billion for the second quarter of 2026. Ford's revenue for the quarter ended March 31, 2026, was $43.3 billion, while Tesla's revenue for the quarter ended June 30, 2026, reached $28.2 billion, representing a 26% year-over-year increase. Ford's first-quarter sales grew 6% year-over-year, but its electric vehicle segment generated only $1.2 billion in sales and remains unprofitable. Tesla commenced Cybercab production at Gigafactory Texas, though its free cash flow fell nearly 850% year-over-year due to artificial intelligence development costs. Ford announced plans for a manufacturing joint venture with Geely Auto in Spain and launched a Ford Energy division in May to provide battery storage solutions.

Geely Auto Group has officially launched the Lynk & Co 07GT, a new performance-oriented wagon available in four variants. The model features an EM-P intelligent hybrid system, with the all-wheel-drive version delivering up to 390 kW and 765 Nm of torque, and a 28.3 kWh Geely Short Blade Battery supporting a combined driving range of up to 1,422 kilometers. A rally-prepared version was also unveiled and will compete in an August rally event, expanding Lynk & Co's motorsport involvement beyond circuit racing. The 07GT includes an MRC magnetorheological suspension, a towing capacity of 1.6 tons, and up to 6 kW of external power discharge for outdoor activities.

Ford Motor and Geely announced a new joint venture to restart and repurpose Ford's Valencia plant for producing electric and multi-energy vehicles for the European market. The partnership turns the underutilized facility into a shared asset, allowing Ford to align with European demand for cleaner transport while sharing capital and model risk with Geely. The joint venture will produce a mix of Ford and Geely branded models, tying plant utilization to multiple product families. Investors are watching for details on capacity, capital spending, profit sharing, and which models will be prioritized, as well as how the cross-border structure navigates trade policy and tariff exposure.

China's Geely Auto and US automaker Ford Motor have announced a business alliance in Europe, under which Geely will produce two electric SUV models at a Ford plant in Spain, and the two companies will jointly develop new vehicles. A joint venture, 66% owned by Ford and 33% by Geely, will be established in Spain, with shipments of Geely's electric SUVs expected to begin at the Valencia plant in 2028. They also plan to jointly develop a crossover SUV equipped with different powertrains, including full EVs, plug-in hybrids, and extended-range EVs, with production starting in 2028. The Valencia plant has an annual production capacity of around 500,000 units, but its utilization rate stood at only 26% as of 2025, and Ford's European chief has set a goal of running the facility at full capacity. This will be Geely's first production base in Europe, highlighting a clear trend of Chinese manufacturers leveraging underutilized plants of established players to comply with European local sourcing rules.

New passenger car registrations in Europe rose 13.1% year-on-year in June to 1,407,332 units, according to the European Automobile Manufacturers' Association, with electric vehicles and Chinese brands driving growth. Battery electric vehicles surged 51%, plug-in hybrids rose 22.7%, and hybrids increased 17.1%, with these three categories accounting for over 80% of the total. In contrast, internal combustion engine vehicles struggled, with petrol car sales down 12.2% and diesel down 16.9%. Among Chinese brands, BYD, Chery Automobile, and Leapmotor saw increases of roughly three to six times, while SAIC Motor and Zhejiang Geely Holding Group rose over 50% and 11% respectively.