Zhejiang Geely Holding Group has made history by becoming the first Chinese automaker to break into the global top 10 in auto sales for a quarter.
In the January-March period of 2024, Geely sold an impressive 730,000 vehicles, surpassing renowned German manufacturers Mercedes-Benz Group and BMW. This marked a significant leap from its 12th place position in the first quarter of 2023, with sales volume climbing 27% year-on-year.
Fellow Chinese automakers BYD, Changan Automobile, Chery Automobile, and SAIC Motor also performed well, ranking within the top 20 globally. The rankings were compiled from company disclosures and data from the survey firm MarkLines.
Despite the extended Lunar New Year holiday, which typically results in fewer sales days, Chinese carmakers excelled in the first quarter of 2024. Combined sales volume for the five Chinese
companies in the top 20 surged more than 20%, compared to an overall growth of 2% for the top 20 carmakers.
Geely’s success was fueled by its strong performance in the electric vehicle (EV) sector, with its core EV brand Zeekr seeing a significant rise in sales. Sales of new energy vehicles more than doubled, while Volvo Car, also under the Geely umbrella, saw a 12% increase in sales.
BYD followed closely, selling 620,000 vehicles in the first quarter, a 13% increase from the previous year. EVs made up nearly half of BYD’s sales, with 300,000 units sold, trailing only Tesla’s 380,000 units.
Exports played a crucial role in the sales growth for Chinese automakers. Geely’s overseas sales soared by 43%, while BYD’s exports to Europe and Southeast Asia surged 150% to 98,000 vehicles.
China’s EV market is experiencing intense competition, leading to a series of price cuts initiated by BYD and followed by Changan and others. As a result, EV prices are nearing those of conventional gasoline-engine vehicles. However, the market is also showing signs of a supply glut, with projected production capacity far exceeding anticipated sales.
To address this, Chinese automakers are increasingly looking to overseas markets. New energy vehicle exports grew 78% to 1.2 million vehicles in 2023 and are expected to rise to 3.5 million by 2025. However, this has raised concerns in the U.S. and Europe over unfair competition and potential job losses, prompting the U.S. to announce plans to quadruple tariffs on China-made EVs to 100%.
Despite these challenges, Chinese automakers are expanding their reach, with Russia, Mexico, and the Middle East becoming key export destinations. The China Association of Automobile Manufacturers reported that Russia was the top export destination for assembled vehicles in the January-March quarter, followed by Mexico.
In the global market, Toyota Motor remained the leader, selling 2.52 million vehicles in the first quarter, despite a 5% decline. Volkswagen Group ranked second with 2.1 million vehicles, a 3% increase, while Hyundai Motor Group, including Kia, placed third with 1.76 million vehicles, a 2% decrease.
Geely’s remarkable performance highlights the growing influence of Chinese automakers in the global market, driven by robust EV sales and strategic export initiatives.
