In 2024, competition in China's passenger car market became increasingly fierce, and the price war put the profit margins of automakers to a severe test. From January to September 2024, the overall profit margin of automakers was only 4.6%, and it even dropped to 3.4% in September. The fierce competition has further increased the difficulty of survival for traditional automakers, and has also prompted automakers to begin to deeply examine the deep-seated reasons behind the price war.
With the rapid development of new energy vehicles and intelligent technology, automakers have to frequently adjust their marketing and pricing strategies to adapt to the rapid changes in the market terminals. The main factors driving the changes in the terminal market are the diversified demands, changing consumption behaviors, diversified expectations of brands and more personalized value propositions of the new generation of consumers in the Chinese market.
Therefore, how to more accurately grasp market dynamics, quickly respond to market changes, and meet the evolving value propositions of new Chinese consumers and launch corresponding cutting-edge technologies have become the key for automakers to regain their competitive advantage. The so-called "precise control" does not lie in the temporary trend, but in the insight into trends from a long-term perspective.
Adhering to the concept of "car manufacturing is a marathon", Lynk & Co has made sufficient technical reserves for current mainstream technological trends such as hybrid, smart driving/smart cabin, etc., and with a long-term vision of sustainable and stable operation, it continues to improve in various operational aspects such as quality, users, and global layout. It can be said that Lynk & Co has delivered an excellent answer in 2024.
Sales hit a record high, with both oil and electric vehicles growing
Sales volume is not the only criterion for measuring the success of a company, but it is one of the most intuitive and important factors. According to the production and sales data released by the China Association of Automobile Manufacturers, China's passenger car sales in 2024 increased by 3.7% year-on-year; in contrast, in 2024, the total sales volume of the Lynk & Co brand reached 285,441 units, an increase of nearly 30% year-on-year. Among them, in December 2024, the sales volume of the entire Lynk & Co brand was 26,085 units.
From the start of delivery in 2017 to the end of 2024, Lynk & Co's cumulative sales have exceeded 1.33 million vehicles, forming a scale effect. Among them, Lynk & Co has not only grown rapidly in the field of new energy; in the field of fuel vehicles, its volume and price have surpassed the joint venture brands of the same level. It can be said that it contains a high amount of "newness" and gold content.
In 2024, Lynk & Co's new energy vehicle models accounted for more than 58%, and EM-P hybrid models became the main force in sales growth, which is in line with market trends. According to the data from the China Association of Automobile Manufacturers, from January to November 2024, the sales of plug-in hybrid models increased by 85.2% year-on-year. The growth of the hybrid vehicle market has promoted the overall development of the new energy vehicle market.
It is worth noting that the monthly sales of Lynk & Co EM-P twins 07 and 08 have exceeded 10,000 units for seven consecutive months, with cumulative sales exceeding 150,000 units; the cumulative sales of the entire EM-P family exceeded 260,000 units, with a weighted transaction price of more than 220,000, ranking among the top 3 in the high-end plug-in hybrid market.
It is not difficult to find that with the characteristics of "energy saving and better performance, easy to drive anywhere", the EM-P model has become the mainstream choice for users' diversified travel.
In terms of pure electric models, Lynk & Co Z20 produced more than 10,000 units within 10 days of its launch. Undoubtedly, Lynk & Co has high hopes and confidence in this car, and has made sufficient production capacity preparations. According to data, the proportion of small orders for Z20 turning into large orders reached 75%, and the proportion of choosing high-end configurations exceeded 65%. Although the growth rate of the pure electric market has slowed down, Z20 still has strong appeal due to its technological advantages and Lynk & Co brand recognition.
When more and more car companies gave up the fuel vehicle track, Lynk & Co did not follow the trend, but chose a multi-line layout strategy. In 2024, Lynk & Co brand fuel vehicle sales exceeded 110,000 units, and the market share of Lynk & Co 09 fuel version increased month-on-month for seven consecutive months, from 0.41% to 6.47%.
Lynk & Co's high-end brand is also continuing to advance, with the average transaction price of a single vehicle exceeding 170,000 yuan in 2024. According to public data, the average transaction price of current mainstream joint venture brands is between 90,000 and 150,000 yuan.
In addition, Lynk & Co also ranks among the top in terms of the value retention rate, which reflects a brand's recognition and reputation in the market. According to data, in the first half of 2024, the three-year value retention rate of the Lynk & Co brand reached 59.53%, with a total of 6 models entering the top 10 of the overall list. The three-year value retention rate of Lynk & Co 09 is 66.30%, leading the competition in the list of medium and large SUVs of domestic brands.
These data are sufficient to show that it has not only achieved balanced development of product categories, but is also moving more steadily on the upward path.
A breakthrough year, with multipath technology in full bloom
In 2024, Lynk & Co released three new models - Lynk & Co 07 EM-P, Z10 and Z20, which further improved Lynk & Co's fuel, plug-in hybrid and pure electric product matrix. At present, Lynk & Co is a rare high-end new energy brand in the industry that has three power product matrices covering all scenarios. In terms of EM-P technology, Lynk & Co fully grasps market demand and achieves rapid growth in the current market stage; and the two models of the Z series are the latest carriers of Lynk & Co's cutting-edge technology applications such as smart cabin, smart driving, electric drive and design.
The essence of excellent market performance is the strong product strength and the technical support behind it. Taking the high-growth plug-in hybrid/extended range market as an example, its product attributes of being both oil-powered and electric-powered are considered to be a compatible solution to effectively solve the high fuel consumption of fuel vehicles and the range anxiety of electric vehicles in the current environment.
But in fact, not every plug-in hybrid car on the market can achieve the ideal theoretical state. In application, the pure electric range of plug-in hybrid models is generally short, which requires consumers to charge frequently in daily use, especially in urban commuting, where the pure electric range may not be able to meet the travel needs of a day. Once the battery is exhausted, the vehicle will switch to fuel drive mode, thus losing the advantages of low energy consumption and low emissions of plug-in hybrid models in pure electric mode. There are also some models that "have electricity, but are useless without electricity." It can be said that in the world of hybrid cars, ideals are full, but reality is very skinny.
Lynk & Co's EM-P technology was born to solve these practical problems. This technology supports series and parallel operation of the engine and motor. Coupled with the 3DHT Pro hybrid-specific gearbox, compared to the common single-gear hybrid in the industry, which cannot guarantee better fuel economy at high speeds, the former can always ensure that the engine works efficiently, accelerates faster, and drives smoother.
In terms of driving mode selection, the EM-P adopts an electric drive priority strategy, which is quieter and smoother. The full-scenario intelligent countermeasure supports 4 driving modes. In the super extended range mode, electric direct drive is prioritized below 88km/h; above 88km/h, oil parallel drive is prioritized, automatically achieving a perfect balance between energy consumption and performance. Even in the case of low power, the Lynk & Co EM-P super electric twin can achieve an energy consumption of less than 6L, and a full tank of oil and full charge can reach a range of more than 1,400km, without any mileage and energy replenishment anxiety.
Thanks to its solid technical foundation, Lynk & Co EM-P Gemini 07/08 was able to achieve sales of over 10,000 units for seven consecutive months. Unlike other car companies that just go with the flow, Lynk & Co was able to make such a forward-looking prediction and quick execution of the market trend of plug-in hybrids during the switch from oil to electricity, which is not easy.
Lynk & Co's EM-P model is its trump card technology launched to adapt to the fastest growing market segment, and is also the main engine of Lynk & Co's current growth. Adhering to the strategic thinking of developing multiple lines simultaneously, Lynk & Co's pure electric products to be launched in 2024 are also groundbreaking. The cutting-edge technologies they carry are the cornerstone for Lynk & Co to influence the future market situation.
Lynk & Co has a forward-looking layout not only in energy forms, but also in the field of intelligence. Lynk & Co's first pure electric sedan Z10 is the best example of Lynk & Co's breakthrough in the field of intelligence. It adopts the Makalu platform that exceeds the "ceiling" level of performance. Its computing power is 1.8 times that of the 8295 chip. It is also equipped with the high-end intelligent driving solution customized by Lotus Robotics for Lynk & Co, LYNK LHP, equipped with laser radar and NVIDIA Orin X chip. It can realize 33 intelligent driving assistance functions including driving, merging and parking.
In 2024, as the new energy vehicle market continues to heat up, the Chinese market will usher in an unprecedented turning point. From the rise of new forces, to the accelerated transformation of traditional automakers, to the reverse joint ventures of luxury brands and the absorption of Chinese technology, new energy vehicles have entered a new stage of "turning dreams into reality."
With the penetration rate of new energy vehicles exceeding 50% for consecutive years, Lynk & Co has ushered in a breakthrough in 2024 through continuous technological accumulation. Whether it is the EM-P series of new cars that conform to the latest plug-in hybrid trend in the market, or the forward-looking products such as the pure electric Z10 and Z20 facing the ultimate vision, they carry Lynk & Co's breakthrough in the field of new energy, and also establish the technical strength and innovative image of Chinese automobile brands worldwide, laying a solid foundation for the brand's next overseas expansion plan.
Working locally for the locals, Lynk & Co’s technology goes global to capture the minds of users
At present, the "new four modernizations" of the automotive industry are accelerating the transformation from the traditional product-centered design method to the user-centered one. The traditional "accumulation of data" and "configuration competition" are no longer sufficient to create differentiated competitiveness. Automakers need to deeply understand the actual vehicle usage scenarios of users, and create a unique and irreplaceable vehicle experience for users through the optimization of vehicle design and the flexible linkage of multiple configurations based on the needs of different scenarios - this is true for domestic users as well as for overseas users.
In this context, Lynk & Co knows that only by occupying the minds of local users can they firmly choose it when faced with price fluctuations and competing product choices. Data shows that from the first batch of vehicles shipped in 2021 to 2024, Lynk & Co's global shipments have accumulated more than 80,000 vehicles.
Lynk & Co does not simply sell its cars overseas, but develops products that are more suitable for local conditions. For example, the Lynk & Co 01 EM-P European version uses the DHT Pro configuration, which has stronger high-speed performance and more direct performance response, and is more in line with the driving needs of European users.
In terms of material usage, unlike Chinese users who prefer leather, European users are more accustomed to textile fiber materials. Therefore, the Lynk & Co 01 model exported to Europe uses recycled and renewable econyl material in the seat fabric.
In terms of marketing, the core goal of Chinese companies going overseas should be far more than just "high-end" or "younger". More importantly, it is to deliver value beyond products, including aesthetic value, experience value, social value and cultural value. Through these multiple dimensions, brands can provide users with a richer experience, shape the brand's unique image in the minds of users, strengthen the brand's emotional value, and enable users to have a deeper emotional resonance with the brand, thereby increasing brand loyalty and willingness to pay a premium for the brand.
Therefore, when Lynk & Co first went overseas, it insisted on adapting to local conditions and using a context that fits the local culture to communicate in order to deepen the resonance between the brand and users, allowing consumers to experience the Lynk & Co brand's warm, attractive high-quality products and unique services, and let them feel the sincerity of this Chinese brand in taking root in the local area.
For example, the Lynk & Co European Experience Store breaks through the traditional dealership format of viewing and test driving cars. It has flexible rest areas, meeting rooms, coffee bars, and cooperative brand display retail counters, etc., which can provide local residents with space for leisure, activities, and parties, and use the context and lifestyle that locals are accustomed to to create an experiential car retail community that is more suitable for them.
Data shows that Lynk & Co's brand awareness among local European users has reached 15%. Currently, Lynk & Co has deployed in 7 European countries, and by 2025, with the help of Volvo's channel network, the market layout will be expanded to 22 European countries. Outside Europe, Lynk & Co will deploy in the Middle East, Southeast Asia, Latin America and other regions, and will cover 80 countries and regions such as the UAE, Egypt, and Myanmar in 2025.
As the cradle of the global automotive industry, Europe has a fierce market competition. There are many internationally renowned brands, which is a huge challenge for any new entrant. At the same time, trade barriers, protectionism and low brand awareness are also constantly testing the competitiveness of Chinese automakers going overseas. However, the Lynk & Co brand has successfully established a foothold in the European market with its own strength and wisdom. Behind this is Lynk & Co's ultimate pursuit of product quality, continuous exploration of innovative business models, and accurate grasp of market demand.
at last
In recent years, the intensified competition in the automotive industry and the cost-operating pressure require automakers to have more accurate consumer insights and faster market responses, and the organizational system capabilities of enterprises need to change and innovate to build operating capabilities in the new stage. Throughout 2024, corporate headquarters relocation and brand integration efficiency improvement actions have occurred frequently. Guided by the national principle of developing new quality productivity, corporate organizations are accelerating the adjustment of management thinking, shifting from scale-oriented to profit-oriented, guiding organizations to high-quality development, and improving profitability and competitiveness.
Lynk & Co in 2024 will be a year of all-round growth, breakthrough and innovation. Lynk & Co and Zeekr completed their integration this year, and the synergy formed by the two forces will further lay the foundation for the two brands and the entire Geely Group to make a stronger voice in the field of high-end smart electric vehicles.
Since then, the synergy advantages of the two brands in production, technology, market and other aspects have gradually become prominent, and the current annual production and sales scale has successfully reached 500,000 units. According to industry forecasts, with the further release of the integration effect, Lynk & Co and Zeekr are expected to double their sales in 2026 and achieve the milestone goal of annual production and sales of 1 million vehicles.
What is more worth mentioning is that after the beginning of 2025, Lynk & Co dropped the heavy bomb of "SPA Evo architecture", which marked that it has further broken through the threshold of "5 meters long/3 meters wheelbase" for medium and large luxury flagships. From chassis to driving control, from smart driving to smart cabin, from space to comfort, SPA Evo architecture has achieved a qualitative leap and all-dimensional evolution, and also laid a solid foundation for its further upward development in the future. In the flagship SUV Lynk & Co 900, which is the first to be equipped with this architecture, the outside world sees a Lynk & Co brand that has accumulated a lot of experience, made comprehensive breakthroughs, and has a promising future.
