Eliza Wong
The Three Kingdoms of Chinese Automotive: BYD, Geely, and Great Wall
The Chinese automotive market continues to be a battleground where three major players—BYD, Geely, and Great Wall Motors—compete for dominance. The first half of 2025 has revealed fascinating dynamics among these Chinese automotive giants, with each company pursuing different strategies in sales growth, profitability, and global expansion. While BYD leads in sheer volume, Great Wall maintains superior profitability per vehicle, and Geely shows impressive growth despite margin pressures. This analysis delves into the performance metrics, strategic approaches, and future outlook for these three automotive powerhouses shaping China’s auto industry.
Revenue Growth Versus Profitability Challenges
The first half of 2025 presented a complex picture for China’s automotive leaders. All three companies showed revenue growth, but profitability told a different story. BYD reported approximately 371.28 billion yuan in revenue, representing a 23.3% year-over-year increase, with net profit reaching 15.51 billion yuan, up 13.79%. Their automotive segment specifically generated about 302.51 billion yuan, growing 32.49% and accounting for 81.48% of total revenue.
Geely Automotive posted strong revenue growth of 27%, reaching 150.3 billion yuan, but experienced a 14% decline in net profit to 9.29 billion yuan. Great Wall Motors showed minimal revenue growth at 0.99%, reaching 92.335 billion yuan, with net profit declining 10.21% to 6.337 billion yuan.
The Profitability Paradox
This divergence between revenue growth and profitability highlights the intense competitive pressure in China’s auto market. Yang Hongsong, Director of Innovation Development at China Automotive Engineering Research Institute, explained: ‘China’s automotive market competition is fierce. To maintain market share, automakers continuously reduce vehicle prices while simultaneously launching new models. Under current market conditions, company investments are increasing, but per-vehicle profits are not increasing and may even be declining.’
Great Wall Motors acknowledged these challenges in their financial report, stating that they’ve entered a new product cycle, increased sales and revenue, while simultaneously building new direct-to-consumer channel models and increasing investment in new model launches and technological advancements—all contributing to profit volatility.
Sales Surge Versus Profit Per Vehicle
According to China Association of Automobile Manufacturers data, the first half of 2025 saw record production and sales of 15.621 million and 15.653 million vehicles respectively, representing growth of 12.5% and 11.4%. New energy vehicles showed particularly strong performance with production and sales reaching 6.968 million and 6.937 million units, growing 41.4% and 40.3% respectively.
Among our three Chinese automotive giants, BYD led with 2.146 million vehicles sold, representing 33.04% growth. Geely followed with 1.4092 million total vehicles sold, up 47%, while Great Wall moved 568,900 units, a modest 2.52% increase.
The Profitability Reversal
Despite trailing in sales volume, Great Wall achieved the highest profit per vehicle at 11,100 yuan, though this represented a 12.4% decline. BYD’s profit per vehicle stood at 7,200 yuan (down 14.5%), while Geely’s reached 6,600 yuan (down 41.6%). This paradox—where the sales leader doesn’t lead in profitability—reveals important strategic differences among these Chinese automotive giants.
Interestingly, the overall automotive industry actually saw improved profit per vehicle, increasing from 15,000 yuan in first-half 2024 to 16,000 yuan in first-half 2025 according to Cui Dongshu, Secretary General of the China Passenger Car Association. He noted that despite policy support for new energy vehicles creating pricing advantages, mainstream automakers still face significant profit pressure. However, China’s anti-involution efforts are beginning to show positive effects on industry profitability.
Yang Hongsong added perspective: ‘Each company has different strategies. Some companies entering the industry focus primarily on market penetration, others prioritize market share over short-term profits, while some focus on products with higher profit margins.’
Global Expansion: The New Battleground
China’s automotive export performance continues to impress, with first-half 2025 exports reaching 3.083 million vehicles, up 10.4% year-over-year. New energy vehicle exports showed particularly strong growth at 1.06 million units, increasing 75.2%.
The three Chinese automotive giants are pursuing aggressive global strategies with varying results. BYD led overseas sales with over 470,000 vehicles, growing 132%. Great Wall exported 198,700 vehicles (down 0.58%), while Geely exported 184,100 vehicles (down 8%), though their new energy vehicle exports grew 146% to 40,500 units.
Global Manufacturing Footprint
BYD appears to have the strongest global position currently. The company confirmed to China Business Times that their factories in Thailand and Uzbekistan have commenced operations, with their Hungary production base scheduled for future operation.
According to a report from Zhongyan Puhua Industry Research Institute titled ‘2025-2030 China Automotive Going Global Panoramic Research and Market Forecast Report,’ China’s automotive exports will show three major trends over the next five years:
– New energy vehicle export proportion will continue increasing, expected to exceed 50% by 2027
– Africa and the Middle East will become new growth poles, with demographic dividends and policy windows providing expansive opportunities
– Chinese automakers will transition from ‘product export’ to ‘brand export’ and ‘industry export’ through technology transfer, localized cooperation, and ecosystem development, reshaping the global automotive industry landscape
Future Outlook and Strategic Implications
Looking toward the second half of 2025, challenges and opportunities coexist. The international environment remains complex and variable, with automotive markets facing pressure from domestic ‘involution-style’ competition and uncertain foreign tariffs. However, the China Passenger Car Association predicts 2025 passenger vehicle exports will reach 5.46 million units, growing 14%, with their forecast increased by 160,000 units from beginning-of-year projections.
Cui Dongshu analysis suggests that China’s passenger vehicle exports should perform relatively well in 2025. From a sequential perspective, European Union impacts have diminished, and Russia’s market downturn was fully reflected in the first half. Therefore, second-half export trends should be stronger.
The competitive dynamics among these Chinese automotive giants will likely continue evolving as each company leverages its distinctive strengths. BYD’s volume leadership, Great Wall’s profitability focus, and Geely’s growth trajectory despite margin compression demonstrate the varied approaches possible within China’s automotive landscape.
The Road Ahead for China’s Automotive Titans
The first half of 2025 has revealed fascinating strategic differences among China’s three automotive giants. BYD continues to dominate in sales volume and has established early leadership in global markets. Great Wall demonstrates that profitability per vehicle remains achievable even without market leadership in volume. Geely shows impressive growth momentum despite profitability challenges, particularly in the new energy vehicle segment.
These Chinese automotive giants are navigating complex domestic and international landscapes while shaping the future of mobility. Their continued evolution from domestic champions to global contenders will undoubtedly influence the worldwide automotive industry for years to come. As they expand globally, transition to new energy vehicles, and develop increasingly sophisticated technologies, watching how these three automotive giants adapt and compete remains one of the most fascinating stories in today’s automotive industry.
For investors, industry observers, and automotive enthusiasts, tracking the performance and strategies of these Chinese automotive giants provides valuable insights into the future of transportation. As they continue to innovate and expand their global footprint, their impact on the worldwide automotive landscape will only grow more significant in the coming years.
