Core Summary
Geely Galaxy was once the "dark horse" in the new energy sector, breaking through one million sales in just 25 months and setting a new industry record with 1.235 million units sold in 2025, representing a growth rate of 150%. However, since 2026, its sales have declined for five consecutive months, with the biggest drop in May (20%) and a year-on-year decrease of 10% in the first five months. The issues stem from its reliance on a single model, difficulties in transitioning between old and new products, and a shift in the market landscape from one focused on gaining share to one where competitors are competing fiercely for existing demand. As a result, Galaxy is far from meeting its annual sales target of 1.55 million units.
From "Fastest to Break One Million" to "Consecutive Declines": The Twists and Turns of Geely Galaxy's Success
Geely Galaxy's trajectory started incredibly well: its first model was launched in May 2023, and it sold one million units in just 25 months, outpacing many brands by several years. In 2025, it achieved another impressive milestone with 1.235 million units sold, a growth rate of 150%, truly demonstrating its strength as a top performer. But the situation took a dramatic turn in 2026, with monthly sales declining from 11% to 20%, and the total sales for the first five months falling from 458,000 units in the same period last year to 412,000 units. This sudden turnaround is quite surprising, as it's like going from being the top student in the class to barely meeting the passing grade.
Product Dependence and Transition Challenges
Galaxy's sales have largely relied on two main models, both of which are now facing problems:
1. Xingyuan: Over-reliance on a single model and obsolescence
The Xingyuan was the backbone of Galaxy's success, accounting for 55% of total sales in April (35,000 units out of a total of 62,900). It was once the leading seller in the small electric vehicle segment, with monthly sales reaching up to 48,000 units last year. However, as this model enters its end-of-life cycle (similar to a phone that loses its competitiveness after two years), its sales declined in January and March. Although it was updated at the end of May with a price cut of 4,000 yuan and improvements in battery technology and assisted driving features, whether it can regain its former prominence is uncertain.
2. M9: The diminishing advantage of being a pioneer
The M9 was designed to elevate Galaxy's product range (moving from the lower-end to the mid-range segment). It sold over 10,000 units in September last year, but with the launch of similar models from other brands in the same category in 2026, competition has intensified, leading to a significant drop in sales in April (3,103 units). This situation is akin to opening an internet-famous store only to find many competitors in the vicinity, reducing customer traffic.
Overall, Galaxy's main selling models are either outdated or being outperformed by rivals, while new models have not yet taken over as a driving force for growth. This represents the challenges associated with transitioning between old and new products.
Changing Market Conditions
The new energy market has transformed:
1. Shift from Growth to Competition for Existing Demand
In early 2023, the penetration rate of new energy vehicles was only 36%, but by April 2026, it had risen to 61.4%. The market is growing more slowly, meaning that increased sales by one company mean fewer sales for others.
2. Falling Subsidies and Reduced Profitability
Subsidies for purchasing new energy vehicles have decreased, forcing companies to either lower prices to attract customers (reducing profits) or maintain their prices (resulting in slower sales).
3. Intense Competition
Galaxy's main market segment is below 200,000 yuan, where competitors are becoming increasingly strong. For example, Leapmotor sold 81,600 units in May, just 158 units behind Galaxy; Chery's new energy vehicles saw a year-on-year increase of 58.8%, and models from Changan and Dongfeng are also growing rapidly. This means that what used to be a competitive advantage is now being challenged by more formidable rivals.
The 1.55 Million Unit Target Is in Doubt
Meeting Galaxy's annual target of 1.55 million units (a 25% increase) seems increasingly difficult, with only 412,000 units sold in the first five months, leaving a gap of 1.138 million units to cover. To achieve this goal, it would need to sell an average of 160,000 units per month for the remaining seven months. However, the highest monthly sales so far this year were only 81,700 units (in May), and even the Xingyuan's best performance was 48,000 units. It's like being told to earn an additional 16,000 yuan per month from a monthly salary of 5,000.
Conclusion
Galaxy's challenges are not isolated: its reliance on a single model, slow product updates, and the changing market environment all contribute to its current struggles. To meet its targets, it will either need to launch a blockbuster new model or significantly reduce prices to gain market share. Either approach comes with significant risks and costs. It remains to be seen whether Galaxy can come up with effective solutions in the coming months.