Chinese carmaker Geely’s shares plunge 11.6pc after annual sales fall short of target, warns of dismal year ahead
- Geely Auto Group controlled by Chinese billionaire Li Shufu said that it had only hit 95 per cent of its 1.58 million sales target for 2018
- Sales in December alone fell 44 per cent
The Hong Kong-listed unit of Geely Auto Group controlled by Chinese billionaire Li Shufu said in a filing to the stock exchange on Monday evening that it had achieved 95 per cent of the targeted sales of 1.58 million units in 2018, following a 44 per cent year on year sales drop in December alone.
The Hangzhou-based company, viewed as one of the mainland’s most successful car companies, also said that it aimed to sell 1.51 million units this year, nearly unchanged from 2018.
The shares eventually closed the day 11.1 per cent lower at HK$10.24.
Geely’s lacklustre performance, which owns Volvo Cars and a stake in German carmaker Daimler, added to evidence that China’s once buoyant car market had hit a bump after more than two decades of growth in tandem with an economic slowdown and the US-China trade war.
Li warned in a new year’s address posted on social media that 2019 would be pivotal for Geely as it might face a dismal period because of weak market conditions.