Geely Hopes to Reinvent Itself by Using New Energy and Internet Equipped Vehicles
Geely, the Chinese automaker that is known for manufacturing low priced cars, is hoping to reinvent itself as an innovator by using new energy and internet equipped vehicles. the company should be willing to leave its old ways in order to achieve that transformation. According to its chairman Li Shufu, that in making their factories fit for advanced manufacturing and high environmental standards, they will start anew are tearing down the old and the company will be investing billions of yuan into each new factory.
Geely has factories in several cities across the country, and the factory in the northwestern city of Lanzhou was expanded earlier this year thus improving its annual capacity for 120,000 cars from 50,000 and annual capacity for car components to 200,000 units. Last month Geely announced that it will be speeding p their transition from producing traditional cars to manufacturing new energy vehicles, and by 2020 new energy cars accounts for 90 percent of all Geely sales.
Exploring a larger market is part of the company’s transition and for more than a year, growth of car sales in China has tumbled which forced automakers to adapt to new challenges. China car makers are aiming to penetrate a bigger market and to help do this Geely set up three research centers and four design center worldwide with more than 4,000 people involved in the research and development. But the transition to new energy car would be bumpy as it only make up a tiny share of car sales and with the government expected to roll out fewer subsidies they expect competition to be fiercer. In addition to new energy car, Geely want to lead in the internet enable connected cars as well.
Since Uber like services is changing public transportation, Geely is also coming up with plans to tap in the ride on demand market in China using its own app. Geely has already set up a firm that will develop a ride hailing app that is currently being tested in the city of Ningbo and will be expanded soon to other cities such as Hangzhou, Shanghai and Kunning.