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BIZCHINA / Biz Who

Countries' roads, take me there
By GONG ZHENGZHENG (China Daily)
Updated: 2006-03-27 08:13

Americans and Europeans have enjoyed affordable, high quality Chinese commodities such as textiles and home appliances for a number of years. And if Li Shufu realizes his dream, cars will be the country's next major export.

The chairman of domestic upstart Geely Automobile says cars under Chinese brands will gain acceptance among foreign motorists, even in the particularly demanding markets of the United States and Europe.


Li Shufu, Geely Chairman
 
"I hope Chinese-brand cars will be on roads all over the world one day," the 43-year old Li says, despite the fact that foreign brands currently dominate China's car market.

However, Li has ambitious plans for the overseas market. Based in East China's Zhejiang Province, Geely expects to sell 1.3 million cars in foreign markets per year by 2015, two-thirds of its planned annual output for that period.

This currently seems unlikely, as Geely is still a small player compared to the world's biggest auto manufacturers.

Li is not full of hot air, though. He understands the industry and he has already achieved impressive results.

"Li Shufu would not have been able to take Geely this far without thinking big," says Michael Dunne, president of Automotive Resources Asia Ltd, a consultancy with offices in Bangkok, Beijing and Shanghai.

"He does not shy away from a challenge," Dunne tells China Business Weekly.

Geely started looking at overseas markets three years ago. It exported 7,000 cars last year, an increase of 60 per cent from 2004. The company's sales also jumped to 150,000 cars from 100,000 units.

One of only a handful of Chinese automakers focused on independent brand development, the company flexed its muscles in the United States and Europe by participating in two recent international auto shows. Yet despite the audacity, it is still no match for the big foreign names. The company made its debut at the Frankfurt International Motor Show last September, followed by an appearance at the North American International Auto Show in January.

Geely has announced it will enter the US market in late 2008 with its Freedom Cruiser sedan, where the model will retail for less than US$10,000.

Li says Geely will not foolishly rush into the European and US markets, however. Its main targets now are Southeast Asia, the Middle East and Latin America.
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(For more biz stories, please visit Industry Updates)

 
 

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