Xin Lang Cai Jing·2026-01-28 07:57Core Viewpoint - The competition between Geely and BYD in the Chinese electric vehicle market is intensifying, with Geely's sales growth contrasting sharply with its market valuation and profitability compared to BYD [1][2]. Group 1: Sales Performance - In 2025, Geely achieved annual sales of 3.02 million vehicles, a year-on-year increase of 39%, positioning itself as the second-largest domestic brand [1]. - Geely's Galaxy brand contributed significantly, with sales reaching 1.6878 million units, a 150% increase, making it a formidable competitor to BYD [2][3]. - Despite the sales growth, Geely's total sales in December 2025 fell to 236,817 units, a 23.7% decrease from November, indicating potential issues in sustaining momentum [1]. Group 2: Market Valuation and Profitability - BYD's market capitalization recently surpassed HKD 908.5 billion, while Geely's stood at approximately HKD 181 billion, widening the valuation gap to 5:1 [1]. - Geely's profitability is lagging behind BYD, with significant differences in per-vehicle profit and total profit margins [1]. Group 3: Strategic Positioning - Geely's strategy of closely following BYD's product offerings has led to a reactive approach, limiting its ability to innovate independently [2][3]. - The rapid rise of the Galaxy brand has not fully addressed Geely's challenges in high-end market positioning and global expansion [7][8]. Group 4: Technological Development - Geely's technological advancements are perceived as reactive, with a notable delay in responding to BYD's innovations, such as the introduction of advanced driver-assistance systems [3][4]. - The disparity in research and development investment is evident, with BYD's R&D expenditure significantly outpacing that of Geely, reflecting a deeper commitment to technological advancement [10][11]. Group 5: Global Expansion Challenges - Geely's export volume declined by 4% in 2025, contrasting with BYD's 132% growth in overseas sales, highlighting Geely's struggles in international markets [7][8]. - The company's approach to global markets has been criticized for being outdated, relying on transferring domestic models without adapting to local demands [7][8]. Group 6: Future Outlook - Geely aims to achieve a sales target of 6.5 million vehicles by 2030, but this ambition hinges on overcoming its technological and operational challenges [1][14]. - The competition between Geely and BYD is seen as a pivotal moment for the Chinese automotive industry, transitioning from scale-based competition to one focused on systemic and paradigm shifts [15].