Automotive News Europe — 2026-09-14
Automotive Industry
Geely Auto is betting the full-electric E2 — which finished 2025 as the world’s bestselling small car — can replicate its Chinese success in Europe by offering more space and lower prices than the Renault 5 and Volkswagen ID Polo in a segment where battery-powered models are gaining momentum.
Geely’s approach reflects a broader Chinese automaker strategy: Leverage domestic scale and vertical integration to enter European markets with products that undercut established rivals on price while matching or exceeding them on features. BYD, MG and Chery have used a similar playbook to take significant market share in Europe.
Chinese brands’ sales in Europe in the first seven months surpassed their total for all of 2025, with BYD and Chery Group leading 102 percent growth that saw market share hit 11.2 percent in July. From January to July, Chinese sales grew to 813,096, compared with 812,452 sales from January to December 2025, according to figures from market researcher Dataforce.
Geely’s new chairman, An Conghu, targets 1 million vehicle exports in 2026, more than double last year’s tally, as China’s slumping domestic market forces the country’s automakers to aggressively expand international sales.
To realize An’s export target, Geely expects to ship some 400,000 vehicles from China to Europe in 2026, with half going to Eastern Europe.
The E2 has already raced ahead of rivals in China, where it is sold as the Xingyuan for a base price of 64,800 yuan (about €8,300).
Geely said strong demand in China helped the E2 finish 2025 as the world’s bestselling small car, with global volume of 465,775, according to data from Mobility Global (formerly IHS Markit).
The E2 will compete with a growing number of affordable small EVs in Europe, where sales of models with the powertrain rose 63 percent to 150,905 through July, lifting the EV market share in the segment to 13 percent compared with an 8.6 percent share during the first seven months of 2025.
The E2 will start at €19,990 ($23,230) in Europe, where its chief rivals will be the Renault 5, which is the small segment’s top-selling EV and No. 9 seller overall, and the recently launched Volkswagen ID Polo. The Renault 5 starts at €26,290 while the ID Polo’s base price is €24,995.
Other rivals include the BYD Dolphin Surf, which debuted last year and starts at €22,990.
Geely believes the E2 has a key edge.
“I think space is our most competitive advantage” over the Renault 5, said Zack Zhang, Geely Auto Europe’s chief product officer, who called the French model a “magnificent car.”
The E2, which had its German market debut Sept. 8 here in Landshut, northeast of Munich, is among the largest cars in Europe’s small car segment.
At 4135 mm long, it is 213 mm longer than the Renault 5 and 82 mm longer than the ID Polo, while its 2645-mm wheelbase is 105 mm longer than the Renault’s and 53 mm longer than the VW’s.
Zhang said the E2’s other unique selling point is that it has a rear-wheel-drive configuration while its rivals are all front-wheel drive. Geely said rwd provides more agile and balanced handling, especially in city traffic and on winding roads.
“What will be unique for us is rear-wheel drive and also the multilink” rear suspension, Zhang said, adding that the combination should give the E2 “the best handling in the class.”
Geely said its engineers in Germany and Sweden invested more than 7,200 development hours adapting the E2 to European preferences for maneuverability and comfort. The car underwent roughly 720,000 km (450,000 miles) of testing at eight proving grounds, the automaker said.
Geely, which in the first seven months sold 17,283 cars in Europe, up from 1,316 in the same period last year, expects the E2 to quickly become its leader. Zhang said more than 3,500 leads were generated in the first month of preorders.
The E2 will be offered in Germany in three variants, starting with the €19,990 Pro, which combines a 35.4-kilowatt-hour battery with a 60-kilowatt electric motor and has a 252-km WLTP-certified range. That price drops to €13,990 if the customer qualifies for the German government’s maximum incentive for EVs.
The €23,990 Max gets a larger 47.1-kWh battery and more powerful 85-kW motor, extending range by 93 km to 345 km and increasing maximum DC charging capacity to 80 kW from 60 kW.
The top-of-the-line €26,990 Ultra uses the same battery and powertrain as the Max but adds equipment including 16-inch alloy wheels, an electric tailgate, ambient lighting and a 540-degree camera.
Philipp Hempel, executive director of Geely Auto Deutschland, said his 2026 target is to sell 5,000 vehicles in Germany, Europe’s largest market, where sales started in April. He added that Geely’s dealership network is on track to grow to more than 60 dealers from 35 now.
Less than €100 to lease
Geely will also offer the E2 Pro in Germany for €99 a month over four years with a €6,000 upfront payment and an annual allowance of 10,000 km. Including the payment, the lease costs €10,752 over four years, equivalent to €224 a month before delivery and registration costs. However, that €6,000 down payment could be reimbursed if the customer qualified for the government’s EV rebate.
Geely’s offer, without the incentive, compares with €119 a month for the full-electric Peugeot 208 with €5,000 down over three years, while Fiat offers the Grande Panda Electric for €99 a month with €5,000 down over four years, although the Fiat deal is limited to 5,000 km annually.
Some Volkswagen German dealers are advertising the ID Polo for €99 a month with a €6,000 down payment and 10,000-km annual allowance, but the automaker’s nationwide offer for the ID Polo Life starts at €275 a month with €3,000 down over four years.
Despite the aggressive pricing, combined with a 28.8 percent EU tariff added to the China-made EV, Zhang expect the E2 to be profitable.
“The philosophy for Geely is not price competition or to cut a price to sacrifice our profit,” Zhang said. “We need to find a balance. So definitely this car will also bring profitability for our group.”
That confidence reflects Geely’s control over key EV components, which helps offset tariff costs that have made European expansion challenging for several Chinese automakers.
“Most of the main parts for the EV or PHEV — like battery, electric motor and electric control unit — it’s all developed and produced by Geely,” he said
When asked what sets the E2 apart in China, Zhang said the car has succeeded not just because of its low entry price.
“You need to deliver more,” he said. “You need to have the top safety, top handling and the most space in the class. Then Chinese customers will buy it.”
Rapid expansion plans
Geely’s aggressive expansion plans signal confidence that the E2 can establish a foothold.
It is one of four models Geely will bring to market this year, joining the Starray plug-in hybrid compact SUV, E5 full-electric compact SUV and Monjaro PHEV midsize SUV that is set to launch before the end of the year.
In 2027, Geely will add a large SUV, two midsize sedans, another midsize SUV and two more compact SUVs, more than doubling its lineup to 10. By 2028, Geely wants the portfolio to grow to 16 models, adding another large SUV, another midsize SUV, three more compact SUVs and a minicar.
Zhang said Geely’s joint venture with Ford to manufacture vehicles starting in 2028 in Valencia, Spain, will be a crucial element of increasing the lineup fourfold within 36 months.
Ford will add an all-new compact crossover jointly developed with Geely in 2028. Ford’s model will offer multiple powertrains, including a plug-in hybrid version. Geely will produce two electric SUVs for its namesake volume brand.