By Martin Mou

Geely Automobile Holdings Ltd. said it expects headwinds brought on by the Covid-19 pandemic to continue this year, as it posted sharply lower first-half net profit.

The Chinese car maker Monday cut its full-year sales target by 6% to 1.32 million units. It said the recovery since the second quarter had been slower than expected and global uncertainties are likely to persist. The company said the pandemic has led to serious disruption of the group's operations during what could be one of its most difficult years.

Geely's first-half net profit fell 43% to 2.3 billion yuan ($330.9 million) from a year earlier, while revenue dropped 23% to CNY36.82 billion.

Anticipating an increasingly competitive auto market in China, Geely said it will increase the proportion of new-energy vehicles in its sales mix and further expand exports to new markets in Southeast Asia and Western Europe.

Geely--whose parent, Geely Holding, owns Volvo Car AB--said it has started preliminary discussions with Volvo management regarding a possible combination of the two companies. Geely didn't provide any substantial update on the possible tie-up. 



  Write to Martin Mou at martin.mou@wsj.com