As 2024 draws to a close, according to figures released by the China Passenger Car Association, BYD sold 3,315,206 vehicles in the first eleven months of this year, securing the top spot among domestic passenger vehicle enterprises with a 37.8% year-on-year increase. Geely, with 1,587,723 vehicles sold, placed second, marking a 26.1% year-on-year growth, also an impressive feat.

Before 2022, Geely had dominated sales among independent brands for five consecutive years. However, when BYD officially ceased gasoline vehicle production in 2022 to fully embrace electrification, the sales crown shifted hands.

Compared to Geely, which began manufacturing vehicles in 1997, BYD, which entered the automotive industry in 2003, was a relative newcomer and less prominent during the gasoline vehicle era. From 2017 to 2022, Geely consecutively held the sales crown among independent brands until 2022, when BYD announced the cessation of gasoline vehicle production and full electrification, taking away Geely's title as the "top independent brand."

Dissatisfied with this outcome, Geely is determined to surpass BYD in its strongest areas and reclaim its championship honor. "Close-quarters combat" has become a defining theme for Geely and BYD throughout 2024.

01 The Battle for Supremacy

In May this year, BYD officially launched its fifth-generation DM technology, with a "globally optimal" engine thermal efficiency of 46.06%, becoming BYD's most eye-catching technological hallmark. Unwilling to be outdone, Geely produced a certificate showing a thermal efficiency of 46.1% achieved in 2023, claiming global leadership.

This sparked a war of words, with BYD questioning Geely's 46.1% figure as "non-production, non-commercial," setting the stage for future debates between industry leaders.

On June 7 at the China Auto Chongqing Forum, Li Shufu and Wang Chuanfu engaged in a "dual fortune" debate from afar. Li Shufu emphasized that internal competition and price wars would only lead to disorderly competition, while Wang Chuanfu argued that competition is a natural law and the essence of progress, stating that only competition can bring prosperity.

At another forum in July, the top PR representatives from both companies again engaged in a verbal sparring match over internal competition. Li Yunfei from BYD advocated that "the more competitive, the better; BYD will always play its cards, and those who can't keep up can drop out." Yang Xueliang from Geely believed that "competition is like quenching thirst with poison; unruly players should be punished."

However, compared to the verbal sparring between industry leaders, the real excitement lies in Geely's two strategic moves in the field of new energy technology, each aimed directly at BYD's weaknesses.

BYD had earlier revealed that the second-generation Blade Battery was expected to debut in August. However, at the end of June, Geely officially launched the "Shendun" knife-edge battery, dropping a bombshell into the power battery market before the second-generation Blade Battery and preemptively entering the "knife-edge" race ahead of BYD.

The Shendun knife-edge battery, which also uses a lithium iron phosphate system, boasts a cell energy density of 192Wh/kg and a length of only 58cm, significantly shorter than BYD's long-blade battery at 96cm. Its smaller size allows for more flexible arrangement options, and its fast-charging speed is 1.5 times faster than the long-blade battery. Moreover, while BYD's Blade Battery set a safety benchmark with its "needle penetration without ignition" test four years ago, the Shendun knife-edge battery goes one step further with the "eight-needle simultaneous penetration" test, a powerful punch.

The knife-edge battery is just Geely's first card. The arrival of the Thunder Power EM-i super hybrid on October 30 is Geely's second sword aimed at BYD's fifth-generation DM technology. At this point, Geely's Thunder Power EM super hybrid also boasts two major technological systems: Thunder Power EM-P, benchmarked against BYD's DM-P, and Thunder Power EM-i, benchmarked against BYD's DM-i. P stands for performance, and i stands for energy efficiency, saving Geely the need to educate users.

Since BYD has already captured the hearts and minds of users with its DM technology, giving it a first-mover advantage, Geely, as a latecomer with Thunder Power EM, must focus on technological innovation and challenge the leader with more impressive data.

BYD's fifth-generation DM-i has a combined range of up to 2,100 kilometers and a fuel consumption of 2.9 liters per 100 kilometers when the battery is low. In contrast, the test vehicle equipped with Thunder Power EM-i super hybrid boasts an extreme range of up to 2,390.5 kilometers and an average fuel consumption of 2.62 liters per 100 kilometers. Moreover, this time, Geely's mass-produced gasoline engine has achieved a thermal efficiency of 46.5%, truly the highest in the world.

02 Comprehensive Product Benchmarking

The Galaxy series launched in 2023 can be seen as Geely's comprehensive benchmarking of BYD's Dynasty and Ocean models in the mainstream new energy market. The previous three models, L7, E8, and L6, received positive market feedback but fell short of becoming true blockbuster products.

The Galaxy E5 and Xingyuan, which were successively launched in the second half of this year, ushered in a major breakthrough for the Galaxy series. The Galaxy E5 achieved sales of 40,000 units in 85 days, while Geely Xingyuan completed the delivery of over 11,500 new vehicles within 16 days. Both models can be considered blockbusters.

The Geely Galaxy E5, launched on August 3, targets the 200,000-yuan new energy SUV market segment dominated by BYD's Yuan PLUS, with a limited-time offer price of 109,800-145,800 yuan. The 2024 BYD Yuan PLUS is priced at 119,800-147,800 yuan, giving Geely a pricing advantage.

Taking the 2024 BYD Yuan PLUS Honor Edition 510KM Surpass variant priced at 139,800 yuan and the Geely Galaxy E5 2024 530km Explore+ variant priced at 135,800 yuan as examples, the E5 is 4,000 yuan cheaper, offers 20km more range, is larger in size with a 30mm longer wheelbase, has 14 more horsepower, 10 more Nm of peak torque, is 0.4 seconds faster in 0-100km/h acceleration, and consumes 0.4kWh less electricity per 100 kilometers.

With superior core data and a price that is a few thousand yuan lower, the Geely Galaxy E5 stands out for its comprehensive cost-effectiveness. High cost-effectiveness was originally BYD's strength, so the Geely Galaxy E5 is using BYD's tactics to counterattack its rival.

The Geely Xingyuan, launched on October 9, continues this strategic approach. Positioned as a pure electric compact car, the five models have a limited-time price range of 69,800-98,800 yuan. In this market segment, the 2025 BYD Seagull is priced at 69,800-85,800 yuan, and the Dolphin at 99,800-129,800 yuan.

The Geely Xingyuan is essentially the same as the BYD Seagull in terms of positioning and pricing. The two range versions, 310km and 410km, are exactly 5km more than the Seagull's respective versions, with slightly higher performance parameters. The spatial dimensions reach the level of the BYD Dolphin, and the entire series comes standard with Flyme Auto intelligent cockpit, providing a more obvious advantage in intelligence.

After the launch of Thunder Power EM-i super hybrid technology, Geely's siege on BYD intensified. On December 6, the Galaxy Starship 7 EM-i, which benchmarks BYD's Song PLUS DM-i and Song Pro DM-i, was launched, with a starting price of 99,800 yuan, still 10,000 yuan lower than the lowest starting price of the "dual Songs." It slightly surpasses in range, fuel economy, space, and configuration.

The Song Pro equipped with the fifth-generation DM-i technology has a combined range of 1,400 kilometers and a fuel consumption of 3.79 liters per 100 kilometers when the battery is low. In contrast, the Galaxy Starship 7 EM-i achieves a combined range of 1,420 kilometers and a fuel consumption of 3.75 liters per 100 kilometers when the battery is low. In terms of power, the Song Pro DM-i's engine has a maximum power of 74kW, peak torque of 126N·m, motor power of 120kW, and motor torque of 210N·m. The Starship 7 EM-i's specifications are 82kW, 136N·m, 160kW, and 262N·m, respectively, again achieving "overall leadership."

In terms of vehicle dimensions, the Starship 7 EM-i is slightly higher than the Song Pro DM-i and aligns with the Song PLUS DM-i. Additionally, the Starship 7 EM-i comes standard with a 14.6-inch central control screen and Flyme Auto infotainment system. At the same price point, the "dual Songs" can only offer a 12.8-inch version, making the Starship 7 EM-i's intelligent cockpit slightly superior in overall appearance and experience.

This time, BYD did not hold back either. Immediately after the launch of Starship 7 EM-i, BYD announced a price reduction for the Song Pro DM-i, with the starting price also dropping to 99,800 yuan, closely following its rival.

03 The Best is Yet to Come

In summary, Geely Galaxy's approach in the mainstream new energy market is to closely follow BYD, providing superior product capabilities through technological upgrades and pricing advantages. In other words, whenever BYD releases a popular model, Geely immediately launches a more cost-effective benchmarking model.

In terms of sales channels, similar to BYD's dual-network strategy of the Ocean Network and Dynasty Network, after integrating Geometry into Galaxy, Geely Galaxy has also introduced AB networks. The Galaxy E8, Galaxy E5, Galaxy L7, and Galaxy L6 are classified under Network A, while the Geometry series, Geely Xingyuan, and Starship series are classified under Network B. By the end of next year, the combined scale of the dual networks will exceed 1,000 locations to accommodate higher sales targets.

Of course, given BYD's current momentum, it will be extremely difficult to achieve a short-term overtake. In the first eleven months of this year, BYD sold over 3.75 million vehicles, while the Geely Holding Group, including brands like Volvo and Proton, sold a cumulative total of 3.007 million vehicles, with a significant gap.

However, Geely's strength lies in its comprehensive business. Even though the penetration rate of new energy vehicles in China has exceeded 50%, gasoline vehicles still account for more than 40% of the market share, and Geely has a clear advantage in the gasoline vehicle sector with popular models across five series: Xing, Bo, Bin, and Hao.

In the mid-to-high-end market, the three sub-brands Tengshi, Fangchengbao, and Yangwang collectively sold 163,100 units in the first eleven months of this year, while Zeekr and Lynk & Co. sold 454,400 units. Additionally, Geely owns high-end brands such as Lotus, Volvo, and Polestar. Therefore, Geely has advantages in both the gasoline vehicle market and the mid-to-high-end market.

It is foreseeable that the competition for the "top spot" between Geely and BYD will intensify further in 2025. However, the Chinese market is large enough to accommodate multiple players. Regardless of which of the two independent brands emerges victorious, as long as the competition remains positive, consumers will ultimately benefit.