Author | Shen Tianxiang
Editor | Li Guozheng
On January 5, Geely Automobile’s Galaxy series pure electric flagship car – Galaxy E8 was listed in Hangzhou, launching an impact on the medium and large car market at a price of 175,800 to 228,800 yuan.
This is the third model of Geely Galaxy.
Galaxy was born in February 2023 and is positioned in the high-end new energy of the Geely brand. From the launch of the Galaxy brand, the debut of the first car, to the launch of the third car, Geely Automobile only took 316 days – less than a year, this speed, it seems that there is no one in the industry to surpass.
The unique "Galaxy speed" is also reflected in sales and channel construction. From the launch of the first car L7 in 2023 to the end of the year, Galaxy only took 7 months to break through 83,000 vehicles, and the average price exceeded 160,000 yuan. In terms of channels, the first store opened in early June 2023. By the end of that year, the number of Galaxy stores had reached 650.
To some extent, "Galaxy Speed" symbolizes Geely’s speed, especially the speed of Geely’s transformation into new energy.
Including Galaxy, in 2023, Geely Automobile Group exceeded its sales target – annual sales of 1.687 million vehicles, an increase of about 18% year-on-year. Among them, new energy vehicles were 487,000 vehicles, an increase of more than 48% year-on-year. In the popular plug-in and pure electric fields of the industry, both increased significantly.
The gold content is not only reflected in quantity, but also in quality. Many brands of Geely Automobile Group have made new breakthroughs from different dimensions, brand perception has been continuously upgraded, and international influence has continued to increase. Last year, the group exported 274,000 vehicles, an increase of 38% year-on-year.
Each enterprise has its own development model, and Geely Automobile is moving forward steadily and solidly. In 2023, it originally planned to sell 1.65 million vehicles, but finally exceeded the completion. This is actually within Geely’s expectations, based on its relevant layout in the past few years.
Looking forward to 2024, Geely Automobile will continue to transform into a new vehicle, and has set a sales target of 1.90 million vehicles internally. From 1.687 million to 1.90 million vehicles, the growth rate is about 12.6%. Generally speaking, this goal is not radical, but the pace of new energy transformation will be accelerated. Geely hopes to increase sales of new energy vehicles by more than 66% this year.
In line with the playing style in 2023, Geely will not simply focus on price and marketing this year, but on high value, including safety, technology, service, intelligence, etc., so as to further high-quality transformation, just like the climbers step on every step.
Breaking the New Energy with Technology
On the night of the launch of Galaxy E8, Gan Jiayu, CEO of Geely Automobile Group, revealed a set of data to the media – in 2020, Geely Automobile’s new energy penetration rate was only 2.3%, slightly increased to 6.2% in 2021, increased to 22.9% in 2022, and by the fourth quarter of 2023, this data exceeded 40%.
From the perspective of specific products, Geely Automobile started a new round of strong product cycle last year, and new energy products blossomed in an all-round way, including the first L7 and L6 "ultra-hybrid CP" of the Galaxy series, as well as the Lynk & Co 08 EM-P, Extreme Krypton X, Geometric Panda series, etc., all of which were popular in the new energy field.
The foundation of these trends is Geely Automobile’s technological breakthroughs in the field of new energy.
Geely Automobile is the first of a number of Chinese brands to build open-frame vehicles. In 2013, Geely and Volvo jointly established the China-Europe R & D center, and then launched the compact modular architecture CMA. This architecture not only brings about changes in the intelligent manufacturing system, but also makes the product competitiveness leap. It is based on this architecture that the Lynk & Co brand was born.
By 2020, Geely Automobile put forward the concept of CMA Super Matrix, which will continuously empower the brands of Geely Holding Group to continuously create high-end, high-value and high-performance products, and at the same time open "Technology Geely 4.0", entering the era of comprehensive architecture car manufacturing.
In the transition to new energy, Geely Automobile is still involved.
The first is to derive two intelligent new energy architectures, CMA Evo and e-CMA, under the CMA super matrix. This derivation is not "oil to electricity", but a systematic upgrade and evolution of the three-power system, electrification architecture, and global intelligent safety under the concept of CMA’s original safety design.
The two architectures mainly focus on hybrid, but the specific technical routes are different. Among them, the CMA Evo architecture focuses on plug-in and hybrid, representing the Lynk & Co 08 EM-P; the e-CMA architecture currently focuses on intelligent electric hybrid, representing the Galaxy L7 and L6.
A more forward-looking layout is that almost as soon as the CMA architecture was released in 2016, Geely began to prepare to develop a pure electric architecture. In November of that year, three months after the launch of the Lynk & Co brand, Geely established the SEA vast architecture project team. In later years, when other car companies were still "oil to electricity", Geely already had pure electric architecture reserves.
In September 2020, the SEA vast architecture, which lasted 4 years and invested more than 18 billion yuan, was released. At that time, some industry experts commented that it was an efficient intelligent electric vehicle solution, redefining the research and development cycle of software vehicles, marking Geely’s entry into the intelligent electric vehicle system advancement stage.
The Extreme Krypton brand is based on this architecture.
Now, SEA’s vast architecture not only empowers Extreme Krypton, but also more than 10 brands such as Lotus, Volvo, Polaris, Smart, Extreme Yue, Geely, etc. Galaxy E8 is also built based on this architecture, bringing high-value smart electric vehicles to users in one step.
It is with these structures as the foundation that Geely has products or brands that stand out in every segment of new energy vehicles, especially at the mid-to-high end.
For example, in terms of plug-in, there is Lynk & Co. Data show that the monthly sales of Lynk & Co 08 EM-P continue to break 10,000, and the month-on-month growth continues to be positive. After the listing on September 8 last year, it will break 10,000 vehicles in 10 days, 35 days of mass production, and 70 days of delivery more than 16,000 vehicles, setting a record of more than 30,000 delivered in more than 3 months.
In just a few months, under the E-MP super-range electric solution, Lynk & Co has completed three major product layouts in the SUV market, namely the 08 E-MP, the new 09 E-MP and the 06 E-MP. This year, Lynk & Co’s first mid-size sedan, the 07 E-MP, will be launched.
On the pure electric side, it is represented by Extreme Krypton. By the end of 2023, the cumulative delivery of Extreme Krypton exceeded 190,000 vehicles. A few days later, until January 8 this year, it broke the 200,000 vehicle mark in one fell swoop and maintained the "zero spontaneous combustion" record. The brand demonstrates the super flexibility and expansion of SEA’s vast architecture, and now covers four differentiated markets such as hunting coupe, SUV, MPV and sedan.
What makes its peers admire is that in the field of new energy technology, Geely Automobile has achieved a full-stack self-developed ecological layout. In 2023, it released the world’s first mass-produced 800V lithium iron phosphate ultra-fast charging "BRIC battery". So far, it has completed the complete puzzle of 800V electric drive, electronic control and battery.
Geely’s self-developed new energy technologies include a high-performance silicon carbide four-motor drive system, a new generation of V3 charging technology with the highest single-gun charging power, as well as a new generation of Raytheon hybrid technology, Aegis battery safety system, EM-P super extended-range electric solutions, and green methanol-powered vehicles.
On this basis, in 2024, Geely will launch new pure electric architecture, new electric drive, CTB chassis, self-developed batteries and other new energy technologies and application achievements, providing more technical support for its new energy vehicle sales growth of 66%.
A more technical auspiciousness is slowly unfolding before people’s eyes.
The explosion of intelligent achievements
The competition for new cars has not only focused on new energy technologies represented by Sandian, but also includes intelligence. Especially in the era of new energy vehicles 2.0, electrification and intelligence have been integrated, just as Geely Automobile’s slogan has changed from "build everyone’s boutique car" to "build everyone’s intelligent boutique car".
In October 2021, the "Intelligent Geely 2025" strategy was released, which mentioned the need to build "one network and three systems", that is, a "Intelligent Geely Technology Ecological Network", as well as three major systems composed of intelligent energy, intelligent manufacturing, and intelligent services.
A few days before that conference, Gan Jiayue received a surprise: a small smart cockpit chip, the SE1000, was delivered to his office.
The chip is self-developed by Xinqing Technology, using a car-grade 7-nanometer process, multi-core heterogeneous, and advanced manufacturing process. It is China’s first car-grade SOC chip with a 7-nanometer process. "Although the chip is small, only it can support the intelligent technology ecological network," said Gan Jiayue. The chip is called "Eagle No. 1", and it is equipped with the Lynk & Co 08 EM-P, which was launched in September 2023, after its first mass production.
At that time, Geely Automobile expected to launch 5-nanometer in-vehicle integrated supercomputing platform chips and high-computing-power autonomous driving chips from 2024 to 2025, with a computing power of 256 TOPS.
Now that the time train has entered 2024, I believe it won’t be long until that day.
The newly launched Galaxy E8 has also benefited from a breakthrough technology in intelligence by Geely. In June 2023, the "Geely Future Travel Constellation" 01 group was successfully launched with one shot and nine stars. In February this year, Geely will launch 02 groups of 11 satellites, including "Geely Galaxy" and "Long-range Stargazing". The Galaxy E8 is a direct beneficiary of Geely’s satellite matrix – it will support two-way satellite communication.
Don’t underestimate this technology. It can be more accurate and delay-free positioning, which will bring great help to the future of high-end intelligent driving – from November 2023, our country will gradually issue L3 autonomous driving test licenses, and the industry agrees that L3 autonomous driving is just around the corner.
Geely has also built a computing power base that integrates "car, road, cloud, network, and graph" – Geely Intelligent Computing Center, which will be launched in early 2023. The project has a large-scale AI computing platform and agile and efficient soft and hard collaborative system design, which can support AI large-scale model technology innovation and application. This will help Geely to further open up its technological generational advantages in the fields of intelligent driving, intelligent cockpit, and new energy power management.
The most intuitive thing is that industry-leading handcar integration solutions such as Galaxy NOS and LYNK Flyme Auto have been applied to Geely Galaxy series, Lynk & Co and other models, enhancing the smart cockpit experience; Extreme Krypton high-speed NZP has been launched, and Geely NOA high-end intelligent driving pilot system has been applied to Boyue L and has been put on the market.
Geely hopes to seize the intelligent first opportunity in the second half of the new car, and realize the application of intelligent driving, intelligent cockpit and artificial intelligence in the future.
Under the above intelligent layout, Geely will bring new trends and trends to the automotive industry.
In early 2021, Geely launched "two blue action plans", focusing on intelligent energy-saving and new energy vehicles on the one hand, and intelligent pure electric new energy vehicles on the other hand. There are both similarities and differences between the two.
In both plans, intelligence is included. In recent years, Geely has completed relevant capital investment in the entire ecosystem, and has deeply deployed operating systems, intelligent cockpits, in-vehicle chips, autonomous driving, car network connectivity, low-orbit satellites, and intelligent computing centers.
In terms of intelligence, some traditional car companies do not use various gimmicks to attract users and predict in advance like new powers. On the contrary, they usually do more and say less.
In fact, Geely has a lot of reserves, such as high-speed and urban NOA capabilities, which are being internally verified. Banning Studio learned that in 2024, Geely will hold a technology conference, where more intelligent technologies from Geely can be seen on board, including in AI smart cockpits, urban commuter NOA, satellites, and other fields.
Developing the core is of high value
Whether it is Krypton, Lynk & Co, or Geely Galaxy, Geely Automobile is leading the market with high quality and setting a model of high-end Chinese brands – not piling up painless configurations, nor blindly pursuing high prices, but ensuring that users can buy high-value products at the right price.
1.687 million vehicles, an increase of about 18% – this set of data is not as amazing as some car companies, but the gold content is very high, among which the "gold" is the collective strength of each brand, continuous growth, and anchoring the rapid transformation of new energy and intelligence.
In terms of internationalization, Geely Automobile also performed well. Among them, the Geely brand completed the listing of 10 high-value products in 43 countries around the world; established a fourth subsidiary in the Mexican market to develop the Latin America market with systematic strength.
Lynk & Co has opened 11 offline experience stores in six European countries. The 03 performance family and the flagship model 09 will be launched in the Asia-Pacific market in 2023, enriching Lynk & Co’s overseas product matrix. Next, Lynk & Co will continue to deepen its European strategy and Asia-Pacific strategy, and accelerate the development of South East Asia markets such as Vietnam and the Philippines.
Extreme Krypton has landed in 12 international mainstream markets. Extreme Krypton X and Extreme Krypton 001 have been delivered overseas one after another, and 2 Extreme Krypton centers have been completed in Europe. Extreme Krypton 001 and Extreme Krypton X have been sold in Kazakhstan. Extreme Krypton will open 2 stores in Kazakhstan and expand to 11 stores in 8 cities around the world in 2024.
In addition to products going overseas, technology going overseas is also accelerating. In the first half of 2023, Geely Automobile’s technology licensing revenue was 2.71 billion yuan, an increase of 5.5% year-on-year. In 2022, this data was 1.66 billion yuan.
In addition, Geely and Renault jointly established a powertrain company with an annual production capacity of over 5 million sets of engines and transmissions. Geely also exports a variety of products, engine technology, management and human resources to help Proton turn losses into profits.
More importantly, it is to enhance its international influence. In 2021, Geely became the first Asian member in the history of the IATF, and in November 2023, the IATF awarded Geely a license. So far, Geely has led the development of 407 international, national, industry, local and group standards, and completed the release of 254 standards.
These achievements are due to Geely Automobile’s insistence on technology and quality. They often talk about a saying internally: products are boats, marketing is sails, and word-of-mouth is wind. Meaning, if the marketing power is strong but the product power is not strong, it can only be a temporary phenomenon, and the boat may be subverted at any time; user word-of-mouth is also very important, water can carry a boat and capsize it.
Building high-value products has always been at the heart of Geely Automobile’s development.
While transitioning to new energy, Geely has not given up on the fuel vehicle market. The Geely brand China Star series continuously reshapes the fuel vehicle value benchmark with more advanced gasoline-electric hybrid technology, smarter technological safety, more luxurious vehicle quality, driving control power that takes into account performance and energy saving, and smart cabin smart driving.
At the launch event of the Galaxy E8, Mr. Gan said: "Dancing and spinning will not really bring high value to users. Only by adhering to the true colors of car makers and constantly subverting users in safety, design and experience can we create high value for users."
Previously, when he released the "Smart Geely 2025" strategy, he said that the strategy has three goals – to create a smart travel experience that exceeds users’ expectations, to build a technology-led global car company, and to become the most competitive and respected Chinese car brand.
These three goals are very simple, not to mention to become the top few in global sales, not to mention how high the price is sold, and not to mention how much profit is achieved.
In an interview with Lin Jie, senior vice president of Geely Automobile Group and general manager of Lynk & Co Automotive Sales Company, Bangning Studio once asked a question: What kind of brand will Lynk & Co eventually become?
Lin Jie replied: "To become a brand that Chinese people are proud of, this is our vision. This vision is more fulfilling, more valuable and more meaningful than how much money you earn."
This is the value and consensus of Geely Automobile, and they want to fight for the value of the Chinese brand.
