Geely Automobile Holdings recorded a net income of 1.54 billion yuan or $244 million for 2011, a 13% increase from the 1.37 billion yuan it achieved a year before. The 2011 profit figure surpassed the 21 analysts' average forecast of 1.47 billion yuan as surveyed by Bloomberg. The demand for new automobiles in China has been identified as a contributing factor to the increase in profit.
The country has increased efforts to assist Geely, which is the sibling company of Volvo Cars, as well as other local vehicle manufacturers competing against foreign automakers like Volkswagen Group and General Motors Co.
Nineteen Geely models have been included by the industry regulator on its list of automobiles that government agencies can purchase, shutting out foreign rivals. Last year, the local-brand vehicles' share of the market -- not including SUVs, minivans and multipurpose automobiles -- dropped 1.78 percentage points to 29.11%, the China Association of Automobile Manufacturers revealed. Automobile sales of Geely increased 1% to 421,611 units last year, trailing behind the 5.2% increase experienced by the passenger vehicle market in China.
It previously disclosed in January that it is aiming for a 9% boost in sales to 460,000 automobiles this year. Zhejiang Geely Holding Group Co., which is Geely's parent company, inked a memorandum of understanding in March with Volvo to shift vehicle technology to set up a new brand and strengthen competitiveness.