Geely Auto Emerging From China's Auto Downturn In Better Shape

“Chaos isn’t a pit. Chaos is a ladder.” David Benioff & D.B. Weiss through Petyr Baelish, Game of Thrones

The last year and a half has been tough for Chinese automakers, as the Chinese auto market goes through its first real downturn since the market really became a major opportunity for both global and local producers. Amid the chaos, though, I believe Geely Auto (OTCPK:GELYY) (0175.HK) has continued to perform well and distinguish itself a bit further from the pack of domestic OEMs. With improving results in its new vehicle lineup, particularly SUVs, and a strong platform of electrified models, I think management’s goals of becoming the #2 domestic automaker in China and holding 10% market share within five years are no worse than plausible.

Up more than 25% from my last article, the market has responded favorably to Geely returning to volume growth ahead of the broader market. While the potential returns are not quite exciting at this level, the risk isn’t as high and I believe the stock remains a decent idea for investors who want to play the growth in China’s auto industry.

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Geely Auto Emerging From China's Auto Downturn In Better Shape