Geely Group is reportedly consolidating its Lynk & Co. and Zeekr brands to focus on the new energy vehicle (NEV) market. According to sources cited by the state-run Economic Daily, Zeekr will take a controlling stake in Lynk & Co., with a formal announcement expected soon. This consolidation follows Geelyโs shift from broad expansion to a more focused approach, outlined in the Taizhou Declaration on September 1, 2024. It is part of an ongoing effort to integrate its core businesses.
Zeekr, launched in 2021, has become a significant player in the electric vehicle (EV) market, while Lynk & Co., a joint venture between Geely and Volvo since 2017, has faced challenges in keeping up with the rapid rise of EVs. Despite reaching one million sales in six years, Lynk & Co. only introduced its first battery electric vehicle, Z10 (see specs), in 2024. As part of the integration, Lynk & Co. will retain its brand, but its team and strategy will align more closely with Zeekr, particularly in financial and procurement functions.
The consolidation aims to reduce internal competition and optimize resources to improve Geelyโs competitiveness in the NEV sector. The integration is set to address the evolving dynamics in Chinaโs automotive market, where competition is fierce, and consumer demands are changing rapidly.
Geelyโs sales figures emphasize the need for this strategy. In October 2024, the group sold 226,686 vehicles, a 28% increase from the previous year. Fully electric vehicle (BEV) sales grew by 132%, reaching 78,858 units. Lynk & Co. and Zeekr combined accounted for nearly 30% of Geelyโs total sales in the first three quarters of 2024.
Zeekrโs market share continues to grow, with a 92% increase in sales in October, reaching 25,049 units. Lynk & Co. experienced a 26% increase, selling 31,074 units in the same month. For the year, Geely has sold 1.32 million vehicles, up 26% from 2023, including 408,000 BEVs, a 66% increase.
This consolidation reflects a broader trend in the Chinese automotive industry, with other brands like Polestar also considering similar integrations. Zeekrโs chairman, Andy An, is also set to become chairman of Polestar, suggesting further integration between these brands. Geelyโs new strategic focus aims to streamline operations and enhance its position in the competitive NEV market.
Source: Economic Daily
