Chinese auto maker Geely warned of a possible short-term drop in performance due to the global chip shortage and the resurgence of Covid-19 cases, reports Reuters. Despite the warning, the company maintained its annual sales target, betting on new product launches.
The company’s upbeat forecast and a strong first-half revenue growth helped send shares of the Hangzhou-based car maker up nearly 4%.
Geely posted a 22% rise in six-month revenue to end-June of RMB 45 billion ($6.94 billion), driven by an improved product mix. Its total vehicle sales rose 19% to 630,237 cars, underperforming a 27% growth in China’s overall passenger vehicle sales.
