Following the news that China’s Geely Group is targeting 3.65 million sales a year by 2025, David Leggett, Automotive Analyst at GlobalData, a leading data and analytics company, offers his view:
“Geely is a car company to watch. The largest privately owned automaker in China has struck a large number of tie-ups or partnerships with global automakers – including Volvo Cars, Volvo Trucks, Daimler, Lotus, Proton and most recently Renault. Through these relationships, Geely is able to learn and acquire advanced technological capabilities, share costs, and gain global market reach.
“It is a potential route to boosting international competitiveness.
“The latest joint venture with Renault should see Renault-branded hybrid vehicles sold in China, but manufactured using Geely’s facilities, supply chains and technologies – raising capacity utilization for Geely’s manufacturing infrastructure and lowering cost. It could turn out to be a very smart move.
“Geely is already well progressed down the road to developing its own electric and hybrid vehicles for the Chinese market, with brand presence growing in export markets, too.”