Geely Auto, a major Chinese multinational automotive manufacturing company, and one of the central figures in the electric vehicle (EV) industry, is carefully charting its course beyond China. Founded in 1997 by Li Shufu in Taizhou, eastern China, the company started making home appliances before pivoting to automobiles. Today, it is perhaps best known as the privately held automotive giant that has pulled so far ahead in the EV market that competitors are beginning to sweat.
Geely Auto state their market share as 11% market share in China. This growing success provides a vehicle sales success story across more than 673,000 domestically sold electric vehicles! Green mobility as the global demand for sustainable mobility options grows, Geely Auto is indeed in a position to grow its reach even more. The company has plans to install more than 4,000 new charging stations across China. This expansion will help it continue to build a robust infrastructure to better serve its increasing customer base.
Expansion Through Strategic Partnerships
Geely Auto’s ambition goes well beyond the company’s home market. The company even formed a joint venture with Daimler AG to build Smart city cars, expanding their offerings even more. This partnership is a perfect example of Geely’s strategy to penetrate the global automotive market while boosting existing brands.
What’s more, in recent years Geely Auto has prioritized investments in international manufacturing capacity. It has maintained factories in Russia, Thailand, and Brazil. That last figure includes a former Mercedes-Benz plant in Brazil and a former General Motors Corp. auto plant in Thailand. These acquisitions have the dual effect of increasing Geely’s production capacity while smoothing its entry into new markets.
In 2010, the company filled headlines by acquiring Sweden’s Volvo Car Co. from Ford Motor. This audacious initiative showed just how serious Japan was about making the island nation a global automotive juggernaut. Besides Geely’s shareholding in Sweden’s Volvo Car Group, Geely owns a 49.9% stake in Malaysia’s Proton. This investment provides Geely a 51% controlling interest in the British luxury sports car brand Lotus.
Global Sales and Market Presence
The combination of Geely Auto’s commitment to quality and innovation have propelled impressive sales figures globally. The company has sold over 15 million units of its various models, including Chery, Exeed, Omoda, and Jetour, in overseas markets. In March, Geely began selling its Geely EX5 SUVs in Australia and New Zealand. This new launch is yet another exciting milestone in the company’s efforts to expand globally.
The company’s apparent strategy seems to dovetail with what we hear from industry that knows the facts about production efficiencies. “It is essential for volume to be big, otherwise the cost of production is too high,” noted Wei Jianjun, chairman of Great Wall Motors. No wonder this sentiment aligns perfectly with Geely’s new strategy of massively scaling its operations to meet the skyrocketing demand at low cost.
Future Directions and Innovations
Looking forward, Geely Auto seems well positioned to maintain its aggressive growth path. The installation of more than 4,000 new charging stations is just beginning. This hugely important step goes a long way in helping our outdated infrastructure to catch up with increased production. These types of initiatives are critical to maintaining our ability to support the growing wave of EVs flooding onto our roads.
As Automotive News asia editor Hans Greimel pointed out joint ventures and partnerships are set to have a huge impact on Geely Auto’s future. And the joint project with Jaguar Land Rover, a subsidiary of India’s Tata Motors, seems to welcome market-forces transformative technological exchanges. In addition, it improves complementary market penetration in the overlapping areas where both brands have a presence.
As the automotive landscape continues to evolve with advancements in electric mobility and sustainable practices, Geely Auto remains committed to innovation and expansion. The company is building another facility overseas right now. It further builds strategic partnerships to enhance its competitive edge in the ever-competitive global market.
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