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China’s Geely Auto to slash excess capacity amid overhaul to boost carmaker’s global edge

Company chairman eyes plant mergers and a formal succession road map as the firm rejects price wars to focus on international growth in rivalry with BYD....

News Desk

Staff Writer

Published

Jun 14, 2026

Source

South China Morning Post

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China’s Geely Auto to slash excess capacity amid overhaul to boost carmaker’s global edge

AI Insight:This move highlights Geely's strategic shift from competing on price to focusing on international growth and innovation.

China's Geely Auto, the parent company of Volvo Cars, is planning to reduce its excess production capacity as part of a major overhaul aimed at boosting its global competitiveness. The move is seen as a strategic shift for the company, which is focusing on international growth and innovation rather than engaging in price wars with rival BYD. According to Geely's chairman, the company is exploring plant mergers and a formal succession plan to streamline operations and ensure a smooth transition of leadership. By cutting excess capacity and prioritizing global expansion, Geely aims to strengthen its position in the highly competitive automotive market and establish itself as a major player in the industry.