Geely Holding Group Chairman Li Shufu reaffirmed the company’s commitment to traditional internal combustion engine (ICE) vehicles while continuing to invest in electrification, emphasising that Geely will not engage in price wars but instead focus on technological and quality-driven competition.

In a recently released internal video address, Li Shufu stated that the company will maintain a “two-legged strategy”—advancing smart electric vehicles while continuing to develop and manufacture traditional ICE and hybrid cars.

There is no retreat from traditional gas engines

Li stressed that Geely will not abandon ICE technology, insisting on sustained R&D investment to maintain leadership in the sector. “We must persist in walking on two legs,” he said. “While accelerating smart electrification, we will continue to lead in traditional and hybrid powertrains.”

Global acquisitions for core competence

Addressing Geely’s global expansion—including acquisitions of Volvo and Lotus and stakes in Mercedes-Benz and Aston Martin—Li clarified that the goal is not financial speculation but mastering advanced automotive expertise.

“These established automakers are our foundation,” he said. “A rootless car company has little chance of success.” He cited Volvo for safety, Mercedes for luxury, Lotus for aerodynamics, and Aston Martin for high-end brand management as key learning opportunities.

Rejecting price wars

Li reiterated Geely’s opposition to “cutthroat price competition” (or “involution” in Chinese business terms), advocating instead for “technology, quality, service, brand, and ethical battles.”

“We don’t fight with price cuts but with long-term value,” he said, echoing his 2025 New Year’s message where he vowed to “oppose vicious, zero-sum competition.”

Talents within the company

Li highlighted Geely’s “Talent Forest” strategy, promoting meritocracy over family control. “Every Geely employee should have opportunities to grow and excel,” he said, underscoring open, fair competition within the company.

Editor’s comments

Geely’s stance stands out as Chinese automakers face intense price wars—led by BYD and Tesla. While rivals slash prices, Li’s focus on core technology and premium branding signals a long-game approach, leveraging Geely’s hybrid expertise and global partnerships.

Source: IT-Home