According to the Swedish media Dagens Industri, Chinese automotive giant Geely Holding Group has strengthened its control over Volvo Cars, lifting its ownership to 78.9% after purchasing an additional 5.84 million shares in the Swedish manufacturer. The move signals renewed confidence from the majority owner at a time when Volvo has faced pressure on the stock market.
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Strategic share purchase after market weakness
Between February 6 and February 11, Geely took advantage of a notable decline in Volvo Cars’ share price to increase its stake. The transaction was valued at 136,9 SEK, with an average purchase price of 23,43 SEK per share.
The investment came shortly after Volvo Cars released its latest quarterly earnings, which initially received a lukewarm reaction from investors. Geely’s intervention appears designed to stabilize sentiment and reaffirm long-term commitment to the Swedish brand.
This marks the first time since Volvo Cars’ listing on the Stockholm Stock Exchange that Geely has increased its shareholding. Interestingly, the Chinese group had recently reduced its stake from around 82%, making the latest move a clear reversal and a renewed push to consolidate control.
The market reacted quickly: following news of the purchase, Volvo Cars’ stock rose about 7%, suggesting investors interpreted the move as a strong vote of confidence in the company’s future direction and product strategy.
Strong strategic ties
According to Stefan Lundin, communications chief for Geely in Europe, the relationship between the two companies remains deeply integrated. Speaking to Dagens Industri, he emphasized Geely’s long-term belief in the Swedish automaker:
“Volvo Cars is close to us, and we have strong confidence in the company’s future.”
With the increased stake, the number of publicly traded shares in circulation will decline slightly, further consolidating Geely’s influence over corporate decisions and long-term strategy.
Volvo Cars is a central pillar within Geely’s expanding global automotive portfolio. Beyond Volvo, the Chinese group also controls brands such as Polestar, Lotus, and Zeekr—each playing a distinct role in electrification, performance, and premium mobility.
Outlook
Geely’s latest move reinforces its long-term strategic commitment to Volvo Cars at a pivotal time for the global auto industry. With electrification, software integration, and platform sharing becoming increasingly central to competitiveness, stronger ownership alignment could help accelerate decision-making and investment.
For investors and industry observers alike, the message is clear: despite short-term market volatility, Geely is doubling down on Volvo Cars and its transformation into a fully electric premium manufacturer.
