Geely Chief Condemns Low-Cost Production Approach

Chinese automotive manufacturer Geely has condemned the low-cost production approach, which it considers solely oriented towards short-term profit. Geely Holding Group Chairman Li Shufu also called for the importance of innovation and quality in the sustainability of the automotive industry, as he urged at the 2026 China Chongqing Automotive Forum. In the forum, he explained that vehicles are high-value products requiring long-term development and testing processes. According to him, a manufacturing approach that prioritises cheap costs and excessively fast product cycles potentially poses risks to vehicle quality and safety. He also assessed that vehicle safety is directly linked to human safety, so the engineering and development process must be carried out transparently and accountably. The statement emerged as Geely is undertaking an internal consolidation through a framework known as the Taizhou Declaration. This step includes the closure of several manufacturing entities considered redundant and the centralisation of resources under Geely Automobile Holdings Limited. According to Li, the restructuring was designed several years ago to create a simpler and more efficient corporate structure. In addition to strengthening corporate governance, Geely also places regulatory compliance and intellectual property rights protection as key parts of the company’s main strategy. Amid this reorganisation process, Geely’s sales performance in May 2026 showed positive results. Based on China EV DataTracker data, the Geome Xingyuan model became the largest contributor with sales reaching 38,751 units, or approximately 43.4 per cent of the brand’s total volume. The Atlas L model was in the next position with 13,395 units, followed by the Coolray which contributed around 14.4 per cent of total sales. Meanwhile, the premium SUV Monjaro recorded 11,099 units and the Preface sedan posted sales of 8,592 units. Conversely, a number of lower-volume models such as the Panda Mini, Okavango L, Icon, Binrui, and Boyue REV only provided limited contributions to the group’s overall sales.