Geely has promised cars on the platform developed with its Volvo Cars unit [the Compact Modular Architecture (CMA) which will underpin Volvo’s smaller 40 series cars currently under development and also Lynk models] later this year and announced healthy first half profits.
First half profit more than doubled on stronger than expected demand, according to Bloomberg.
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Citing a filing to the Hong Kong stock exchange, the report said net income climbed 128% to CNY4.34bn (US$650m) in the first six months, beating the average analyst estimate. Vehicle sales rose 89% to 530,627 units.
The company last month increased its full year delivery target by 10% to 1.1m units, Bloomberg noted.
“So far in 2017, the group’s performance has exceeded management’s original expectations despite a generally weaker market in China during the same period,” the company said in its filing. “This, together with a strong new products pipeline ahead should put the group in a good position to secure higher market share in the China market.”
Bloomberg said Geely’s shares have increased 157% this year to $21.8bn, giving the automaker a bigger market valuation than Fiat Chrysler Automobiles and Peugeot.
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By GlobalDataThe automaker’s dependence on sedan sales declined from 69% in 2016 to 55% in the first half of 2017.
According to Bloomberg, Geely said more new SUV models are scheduled to go on sale later this year which will enable the company to tap into the faster growth rate in SUV demand in China.
