In 2022, BYD made headlines when it officially ceased production of fossil fuel vehicles, shifting its focus entirely to electric and renewable energy sourcesThis decision turned out to be a pivotal moment as the company capitalized on the prevailing trends in the automotive market, resulting in an impressive surge in salesCoincidentally, this was also the year when Geely, a prominent Chinese automobile manufacturer, faced significant challenges during its transition towards new energy vehicles, eventually surrendering its long-held title as the leading Chinese national brandOver the subsequent two years, the rivalry between Geely and BYD intensified, with Geely’s executives frequently expressing their ambitions to reclaim the top position among domestic brands.

This year, executives from both companies engaged in a face-to-face debate, dissecting various aspects of the automotive landscape, including market conditions, breakthroughs in technology, and the rapid expansion of their product offerings

These discussions have only heightened the competitive atmosphere as both brands strategize to overcome their respective challenges and seize market share.

Currently, Geely finds itself in a daunting position, facing off against BYD, which has consistently achieved monthly sales exceeding 500,000 unitsTo surmount this formidable obstacle, Geely has initiated a series of targeted policies, particularly within its product lineup, aiming to penetrate the heart of BYD’s territory.

Geely's Pursuit of Redemption

October saw the launch of Geely’s Star Wish, which quickly surpassed monthly sales of 20,000 units, securing its place as the third best-selling compact car in the 60,000 to 100,000 RMB price segment for that month, overtaking BYD’s Dolphin model.

However, Geely was not ready to rest on its laurels

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In December, it introduced the Geely Starship 7 EM-i SUV, with an attractive starting price of under 100,000 RMB, targeting the compact SUV market segment priced from 100,000 to 150,000 RMB.

Data from November revealed a competitive landscape in the compact SUV market, priced between 100,000 and 150,000 RMBBYD secured four positions in the top ten sales, with the Yuan PLUS leading at 26,400 units sold, while models such as the Song PLUS DM-i, Song Pro DM-i, and Song PLUS EV captured fourth, fifth, and eighth places respectivelyGeely managed to secure only two spots, with the Xingyue L selling 24,700 units, placing second, and the Galaxy E5 ranking seventh with 19,000 units sold.

The newly launched Geely Starship 7 EM-i comes with clear intentions; it is the first vehicle to feature Geely’s self-developed Thor EM-i Super Electric Hybrid system designed to help the company regain its standing after losing face just six months prior.

Back in May, BYD announced that its fifth-generation DM-i technology achieved an astounding thermal efficiency of 46.06%, the highest in the world

At that time, although Geely boasted a slightly higher thermal efficiency rating, it attracted ridicule for not achieving mass productionNow, with a new engine featuring a thermal efficiency of 46.5%, Geely aims to reclaim its credibility.

Currently, the Starship 7 EM-i ranks fourth in popularity nationwide, with an average daily interest of 1.0915 millionIts favorable reception can be attributed to its overall performance, reflecting a mature consumer base that can discern the quality of new vehicles in a highly competitive automotive market.

The Starship 7 EM-i stands out particularly in terms of its space managementThe design optimizes engine compartment space, substantially expanding rear legroomAdditionally, the vehicle features a 100L hidden storage area in the trunk, enhancing convenience and overall space utilization, which has been well received by consumers.

In terms of configuration, the Starship 7 EM-i employs a new type of "Shield Short Blade Battery", which bears similarities to BYD’s blade battery technology and utilizes lithium iron phosphate materials

The vehicle's extended-range option can rapidly charge with a peak DC charging power of 36kW, allowing it to recharge from 30% to 80% in approximately 20 minutesIn contrast, the BYD Song Pro DM-i’s charging power is limited to 16kW, while the Song PLUS DM-i version offers a lower power of 26kW for its 112 km range.

Furthermore, during the launch event of the new vehicle, Geely did not shy away from comparisons, stating, “Long blades are not the optimal solution; short blades represent the new generation,” emphasizing their unique patents to ensure EV efficacy.

Notably, BYD has chosen not to retaliate regarding the thermal efficiency claims or the remarks made during the press conferenceThis indicates a rare period of tranquility in a competitive landscape previously marked by sharp exchanges between the two companies.

Targeted Product Launches

For Geely, regaining the title of the leading national brand is an urgent aspiration shared by its leadership.

Founded in 1997 by Li Shufu, Geely embarked on its journey by establishing its first automobile production base in Linhai, Zhejiang

The same year marked the roll-out of the company’s first complete vehicleOver the years, Geely expanded through a series of acquisitions and mergers, which contributed to its growth.

BYD, on the other hand, began its automotive manufacturing journey after acquiring Qinchuan Automobile in January 2003, making its entrance into the market distinctly later than Geely.

During the era of gasoline-powered vehicles, Geely achieved remarkable success with popular models like the Emgrand, Binyue, and Boyue, experiencing peak annual sales of 1.501 million vehicles in 2018, holding onto its position as the national brand leader until 2021. However, as the company transitioned to electric vehicles, it encountered pitfalls, leading to a heavy price as it lagged behind BYD’s rapid growth in 2022.

Geely, perhaps begrudgingly, has voiced skepticism regarding BYD's current achievements

During a live stream featuring the Galaxy E8, Li Shufu addressed the camera, remarking, “After all, we are the masters, and he is the apprenticeNow, the apprentice has played a clever trickThe master must showcase his skills to push the apprentice back into line.”

While he did not mention BYD explicitly, industry insiders interpreted his comments as a pointed reference to the rising competitor.

In the past two years, the competition between Geely and BYD has become a strategic chess game, with both companies making meticulous moves.

At the beginning of the year, BYD boldly announced that “electric is cheaper than oil”, introducing the Song Pro DM-i Glory Version and the Yuan PLUS Glory Version, which collectively saw price drops of around 20,000 RMB relative to previous models, effectively igniting a “price war” across the automotive landscape

Nonetheless, BYD also aimed to elevate its brand status by launching higher-priced models like the Yangwang U7 and Equation Leopard Leopard 8, while the bulk of its sales continued to come from its Dynasty and Ocean series.

Conversely, Geely has steadily ramped up its new product releasesAmong these, the Galaxy series, established in 2023, serves as Geely's strategic penetration into BYD’s territory, with each available model directly targeting BYD’s offerings.

Specifically, 2023 witnessed the debut of the Galaxy L7, which competes with the Song PLUS DM-i; the Galaxy L6, which takes on the Qin PLUS DM-i; and the Galaxy E8, which targets the Han EVMeanwhile, the Galaxy E5 aims to attract customers from the Yuan family, while models like Star Wish and Starship 7 directly challenge the Song Pro DM-i.

Though Geely's Galaxy series consists of merely six models, each has been strategically aligned with BYD's high-performing vehicles in the Dynasty and Ocean series.

It's noteworthy that some models in the Galaxy series are priced slightly lower than their BYD competitors

Industry experts suggest that in today’s hyper-competitive landscape, such a pricing strategy can captivate consumers, as lowering prices remains one of the most straightforward approaches to attracting buyers.

Surging Demand within Niche Markets

On the sales front, Geely's strategic razor appears to be yielding results.

Official data indicates that the Galaxy L7 exceeded 10,000 units in its first month on the market, while surpassing 100,000 units in sales within a mere 13 monthsThe Galaxy E5, launched only 119 days prior, has achieved cumulative deliveries exceeding 60,000 unitsAdditionally, Geely’s Star Wish surpassed 30,000 units in deliveries within 45 days of its launch

Over the first eleven months of the year, the Galaxy series has accumulated 425,000 deliveries, garnering market recognition for its rapid growth rate.

Thanks to the swift performance of the Galaxy series, Geely's cumulative sales reached an impressive 1.9665 million units over the first eleven months, marking a historical recordHowever, despite this progress, Geely still trails BYD in overall sales numbers.

In November alone, BYD’s Qin series achieved sales of 87,000 units, the Song series reached 64,000 units, and the Yuan series recorded 56,500 units, culminating in monthly sales that exceeded 500,000 units, with a total of 3.74 million units sold in the first eleven months.

As the current global leader in renewable energy, BYD does face its own set of challenges

The existence of the Dynasty series and the Ocean series has been critical to BYD's rise as a global frontrunner in new energy vehiclesHowever, in recent years, BYD has ventured into developing more upscale sub-brands in an effort to elevate its brand influence.

Nevertheless, the performance of these newer sub-brands has yet to match that of established luxury brandsData from Pacific Automotive reveals that, in the first eleven months, the Equation Leopard series recorded cumulative sales of 45,000 units; Yangwang achieved 5,491 units; and Tengshi totaled 110,800 units.

In contrast, Geely's luxury electric sub-brand, ZEEKR, is experiencing a robust trajectory, with cumulative sales of 194,900 units within the same period, surpassing the combined totals of Tengshi, Yangwang, and the Equation Leopard series