China's Geely struggles to lift profits as price war rages

Transition to electric vehicles and sluggish domestic economy hit automaker

Lynk & Co, Geely's medium-to-high market brand, is struggling in its transition to electric vehicles. © Reuters

CK TAN and KENJI KAWASE, Nikkei staff writers

August 22, 2023 23:01 JST

SHANGHAI/HONG KONG -- China's Geely Automobile Holdings reported a virtually flat net profit for the first half of the year on Tuesday, as the automaker struggles to shift to electrified vehicles amid a sluggish economic recovery and severe price competition at home.

Though revenue for the group based in Zhejiang province grew by 26% on the year to 73.18 billion yuan ($10.1 billion) in the six months through June, net profit edged up by 1% to 1.57 billion yuan.