1、Insights on Geely Auto(2024)Yiche Research InstituteThe Key to Geelys Battle with BYD:Ditch“Go Young”AuthorsDirector/Chief ALijun ZhouIndustry AYing GaoIndustry ABenya ShiVisual DQiang ZhangInternYubo MaoAs of the end of July 2024,Geely Autos product portfolioremained centered and over reliant on co

2、mpact ICEVs(includingenergy saving vehicles),a segment that has been shrinkingFrom 2014 to 2018,Geely launched a slew of compact ICEVs such as the New Emgrand,Emgrand GS,Emgrand L,Boyue and Vision SUV.These models based on Geelys product 3.0 era took Chinas car market by storm thanks to their superb

3、 styling,quality and bang for the buck,effectively attracting young car buyers especially the post-85s generation which had a huge population,flocked to the car market and were sensitive to pricing,helping to boost Geelys annual vehicle vehicle sales from just over 400,000 units to more than 1.5 mil

4、lion units.Based on these models specifically catered to young buyers,Geely quickly became a new force in Chinas car market and a new leading Chinese car brand.But starting from 2018,as the post-90s with a much smaller population became the new dominant buying force in the youth car market,the share

5、 of compact cars fell from nearly 60%then to 47.54%in 2023.Carmakers that primarily sold compact models experienced a sharp fall in sales during this period.Though Geely was able to improve its car making prowess through the absorption of Volvo technology and maintained annual sales of around 1 mill

6、ion vehicles in China,its“go young”model portfolio lost steam;Bogged down with this scenario while trying to maintain annual sales of 1 million vehicles and profitability,Geely had to adopt a more conservative approach by delaying the roll out of some more adventurous and high-cost tactics,such as h