BEIJING - Geely, the
mainland parent of Hong Kong-listed Geely
Automobile Co Ltd, has forecast a 20-fold increase
in annual output by 2015, with two-thirds to be
sold on the international market.
The
group, owned by Li Shufu, who is listed by Forbes
as one of China's richest men, said it aims to
boost output to 2 million cars a year by 2015, up
from 100,000 units last year. Of this total, 1.4
million cars are expected to be exported or
manufactured overseas by then, Geely said.
Geely will display five self-developed new
car models during the 61st Frankfurt International
Motor Show, from September 13 to 25. This will
represent a debut by Chinese automakers at one of
the world's top car exhibitions. The five models
include the 1-liter right-steering Haoqing 203A,
the 1.5-liter Freedom Cruiser, the 1.8-liter FC-1,
the 1.8-liter China Dragon and the 1.8-liter Maple
Marindo 303H. "We want to prove that Chinese
automakers don't
copy foreigners by showing
off our own designs during the Frankfurt motor
show, and also hope to attract international
publicity," Li said in a statement.
Geely, a motorcycle producer
which entered the car industry in 1998, is one of
only a few independent Chinese automakers. Most of
the country's major vehicle manufacturers, such as
First Automotive Works Corp, Shanghai Automotive
Industry Corp and Dongfeng Motor Corp, assemble
foreign-brand cars.
Geely, which has three plants
in Shanghai and East China's Zhejiang province,
has sold cars to some 30 countries and regions.
This year, it aims to produce 125,000 cars,
including
10,000 units for export. Benjamin Asher,
an analyst with Automotive Resources Asia Limited,
a consultancy with offices in Bangkok and
Shanghai, said: "Geely is China's most
entrepreneurial automotive company. Its resolve to
export should not be underestimated. But to
sustain its momentum, it must lift its quality,
safety and emissions levels to international
standards."
Zhao Jie, Geely's vice
president responsible for overseas operations,
said the company would start to produce the
Freedom Cruiser in December at a joint venture
plant in Malaysia. Output is expected to reach
10,000 units next year. "We are also preparing to
enter the European and US markets," Zhao told the
China Daily. China's exports of cars, including
those built abroad with domestically made spare
parts, have been growing rapidly in recent years,
with domestic manufacturers speeding up efforts in
the international market. The nation exported
9,600 cars in the first half of this year, a surge
of 183% from a year ago. But most exports have
been to southeast Asia, the Middle East and
Africa.
Chery, another
independent car maker in Anhui province, plans to
produce cars in Iran later in 2005. The company
also plans to export cars to the United States
through Visionary Vehicles LLC, a US auto trader,
starting from 2007, with a planned annual volume
of 250,000 units. In April of this year, China
Brilliance Auto, BMW's partner in Liaoning
province, agreed with an Egyptian partner to
produce its Zhonghua sedans in the African
country.
However,
Jia Xinguang from China Automotive Industry
Corporation, warned of price wars between domestic
car makers in overseas markets, possible
anti-dumping charges and other safeguard measures.
"As new players in the international market,
Chinese car makers should pay close attention to
these problems," Jia said.
10,000 units for export. Benjamin Asher,
an analyst with Automotive Resources Asia Limited,
a consultancy with offices in Bangkok and
Shanghai, said: "Geely is China's most
entrepreneurial automotive company. Its resolve to
export should not be underestimated. But to
sustain its momentum, it must lift its quality,
safety and emissions levels to international
standards."
