Geely July Exports Surpass 106,000 Units: That Move in Valencia is the Real Masterstroke

That August 1st sales quick report, I read it over and over again. Geely's total July sales reached 250,161 units, nothing unexpected; what really made me pause in front of my computer was the overseas data: exports of 106,663 units, up 202% year-on-year, rising month-on-month and year-on-month for 7 consecutive months, and reaching the 100,000 unit mark for two consecutive months.

Working in this industry for so long, you develop a feel for numbers. Previously when we talked about exports, it was assumed we just pull domestic surplus inventory to the Middle East or Africa to get blood back. But of Geely's 106,000 units this month, new energy vehicles accounted for 62,604 units, a proportion as high as 59%. What does this show? It shows what Geely sends overseas is no longer "surplus stock", but the "elite forces" currently fighting the main battle domestically.

The logic behind this deserves to be broken down and discussed thoroughly.

I see many peers focusing on total sales volume. Actually, break it down by model dimension, you will find Geely's approach has changed. Previously relying on one car to rule the world, now it is rising simultaneously in various sub-segments.

Taking Star Wish (EX2) as an example, it took first place in Thailand's pure electric market in June, pushing BYD Atto 3 aside. This car looks unremarkable domestically, but in Southeast Asia's congested, high-temperature, cost-performance-focused markets, it is simply a dimensional strike. Even more incredibly, this car entered the top two in Brazil and Mexico. An A0-level small car can gain volume simultaneously in Southeast Asia and Latin America with completely different usage scenarios. This is definitely not luck, but right product definition.

Look at Starship 7 EM-i (EX5 EM-i), this car took C-level PHEV first place in Poland. Europeans are shrewd, high fuel prices, inconvenient charging, PHEV is indeed the optimal solution at this stage. Geely taking the domestic Thor Electric Hybrid technology over there, just cut right into the pain points.

Lynk & Co 08 and Zeekr need not be mentioned. Lynk & Co 08 entering the top three in premium plug-in hybrids in a place like Mexico, which is the "heartland of American cars", Zeekr pressing BBA down in right-hand drive markets like Australia, Malaysia. This is no longer explainable by "cost-performance", this is substantive breakthrough in brand elevation. Previously we said Chinese cars going overseas is "encircle the cities from the countryside", now it looks like Geely wants to directly enter "the city" to open stores.

To tell the truth, July sales volume is just the result, that big move Geely and Ford pulled off in Spain at the end of July is the key to deciding the pattern of the next three years.

Geely spent 221 million euros to buy 34% stake of Ford's Spanish Valencia factory. This money looks a lot, but in the background of building factories in Europe costing billions of euros, this is simply "rock-bottom price".

Why is this move so clever? We who work in industry all understand, the European market has always had a "glass door", that is that anti-subsidy tariff. Previously we made cars and sent them over, tariffs were so high it was shocking, price advantage instantly disappeared. Now Geely directly builds a joint venture factory in Spain, using Ford's idle capacity to make Geely cars. This trick of "borrowing a boat to go out", directly bypasses the tariff barriers.

More importantly, this factory was built in 1976, Ford has run it there for decades, supply chain, workers, union relations are all sorted out. Geely spending small money to do big things, not only gained capacity, but also gained the "ticket" to enter the EU market and "compliance credentials". Afterward, Europeans buying Geely cars, packaging might print "Made in Spain". This is not only a business victory, but survival wisdom under geopolitical games.

Having done auto reporting for so many years, I have seen too many companies fail miserably when going overseas. Previously many car manufacturers going overseas, just find an agent, send cars over, whether they sell well depends entirely on heaven. But Geely's current gameplay is "system overseas".

What is a system? It is "One Geely" strategic coordination. Geely, Lynk & Co, Zeekr three brands, positioning clearly divided, fighting each other not at all. Geely focuses on volume, Lynk & Co on quality, Zeekr on high-end. This multi-brand synergy is even more important overseas than domestically, because overseas dealers fear OEM left-right mutual fighting.

Looking deeper, it is technical foundation sharing. CMA, SEA these architectures, plus Thor Electric Hybrid, Shield Battery, all globally universal. This is like building blocks, base is universal, above can according to different country regulations, road conditions, consumer habits change shells. This development efficiency is what those still "one car one car redesign" competitors cannot compare with.

Past decade smashed in 250 billion R&D fees, now look, time for harvest has arrived.

Of course, we also must be calm. Although Geely's momentum is fierce, challenges are still ahead. Before Valencia factory first car rolls out in 2028, union negotiations, production line renovation, EU certification, every gate is not easy. Moreover, Lynk & Co and Zeekr really entering Western Europe, facing Mercedes, BMW, Tesla these "local heavyweights", hard battles are still ahead.

But for us spectators, Geely's July 106,000 units, signal meaning already very clear. Chinese cars going overseas, already passed that "selling cars out is enough" untamed era, entered "manufacture locally, sell locally, service locally" system competition stage.

Later you see Zeekr on Sydney streets, or Starship 7 in Warsaw, likely not from Ningbo Port crossing ocean transported over, but European local factory roll-out products. This is true globalization, also Geely this wave operation most makes me feel "sophisticated" place.

This game of chess, Geely has only just started placing stones.