Volvo Cars and Geely Auto Group reached a final agreement on Thursday under which the Swedish carmaker will become the exclusive distributor of Lynk & Co in Europe from January 2027.

Lynk & Co is a brand owned by Geely Auto, while both Geely Auto and Volvo Cars are part of Zhejiang Geely Holding Group.

Under the agreement, Volvo Cars will take full responsibility for Lynk & Co's commercial and brand operations in Europe, as the two sides seek to accelerate the Chinese brand's growth in the region.

The partnership will enable the premium Chinese brand to move toward a more scalable retail model in Europe by leveraging Volvo Cars' established commercial infrastructure, particularly its retail and after-sales networks.

The move comes as overseas markets are becoming an increasingly important growth avenue for Chinese automakers.

China's passenger vehicle exports exceeded 6.2 million units in the first eight months of 2026, already surpassing the full-year total for 2025, according to the China Association of Automobile Manufacturers.

In August, passenger vehicle exports rose 77.5 percent year-on-year to 894,000 units, while exports of new energy passenger vehicles surged 154.7 percent.

The rapid growth is prompting Chinese automakers to put greater emphasis on overseas sales, while also moving beyond simply exporting vehicles toward building local sales, service and manufacturing capabilities.

For brands seeking sustainable growth in mature markets such as Europe, established distribution and after-sales networks can be as important as the products themselves, said analysts.

Lynk & Co has pursued international expansion since its launch in 2016, making its European debut in Berlin, Germany, that year.

By the end of 2025, the brand had entered more than 50 countries and regions globally, with overseas sales exceeding 30,000 vehicles last year.

The deal also comes against the backdrop of Geely Holding's "One Geely" strategy, which seeks to deepen collaboration and resource sharing across the group's brands and businesses while maintaining their differentiated market positioning.

Under the group's 2030 strategy, Geely Holding aims to achieve global sales of more than 6.5 million vehicles, with overseas sales accounting for more than one-third of the total.

The group has said it will make greater use of its global assets and local operating capabilities to support the international growth of its brands.

Geely Auto will continue to oversee Lynk & Co's global product design, research and development, regulatory certification and overall brand strategy. The agreement does not involve any change to the ownership structure.

(Source: China Daily)