China's Auto Market 2026: BYD Pushes Brand Decentralization, Geely Pursues Multi-Brand Integration

In 2026, Chinese automakers are adopting opposing organizational strategies. BYD has implemented independent accounting and self-directed R&D mechanisms across its four sub-brands—Dynasty, Ocean, Denza, and Fangchengbao—each establishing its own research institute. The group’s central engineering institute has been transformed into a “technology platform,” providing shared technical support, while the Yangwang brand remains temporarily excluded from performance evaluations due to its unique market positioning. This move aims to address intensifying product homogenization in the new energy vehicle (NEV) segment, internal inefficiencies caused by centralized R&D management, and the inability of consolidated financial statements to accurately reflect each brand’s true profitability. Meanwhile, Geely is pursuing multi-brand consolidation, explicitly phasing out redundant entities through closures, mergers, and restructuring to return to its “One Geely” strategy—integrating Geometry into Galaxy and Lynk & Co into Zeekr. Previously, the multi-legal-entity structure led to duplicated R&D investments and fragmented supply chain procurement, resulting in tens of billions of yuan in annual internal inefficiencies. By centralizing procurement and optimizing R&D investment structures, Geely has already demonstrated improved gross margins and enhanced R&D efficiency in 2025. These two automakers are moving in opposite directions—one decentralizing from a centralized model, the other recentralizing from a decentralized one—with the shared goal of achieving an optimal balance between scale and efficiency. Key indicators to watch include whether BYD’s Denza and Fangchengbao brands can achieve self-sustaining profitability, and whether Zeekr and Lynk & Co can maintain product competitiveness post-integration under Geely. Annual financial reports will likely reveal the effectiveness of these strategic adjustments.