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BIZCHINA / Biz Who

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

Li predicts that Geely and other Chinese automakers will gain a firm foothold in the international auto industry within the next 8 to 10 years. Yet Li is not solely interested in making big plans, saying Geely is committed to making cars with "Chinese characteristics".

"Our cars must have Chinese cultural identities," Li says.

"This point will make us more competitive and will help differentiate us from foreign carmakers around the world."


Li Shufu answers foreign journalists' questions at the Frankfurt International Motor Show as his company Geely was the only one Chinese automaker present at the show on September 13, 2005. [sina.com]
Geely will continue to focus on independent development, rather than simply assembling foreign brands like China's top State-owned car manufacturers, such as SAIC, First Automotive Works Corp and Dongfeng Motor Corp.

Geely will also invest billions of yuan over the next two years to bring its research and development centre up to international standards.

"Independent development is a sword for us. Although it is not very sharp now, it is our own sword and we will be able to use it to cut ourselves a share in the international car market," he says.

Geely, which entered the auto industry in 1998, currently makes economy cars. Its product lines include the Haoqing, Merrie, Freedom Cruiser, Ulion, Meirenbao and Maple, and retail for between 30,000 yuan (US$3,700) and 80,000 yuan (US$10,000).

Li says Geely's products will move upmarket once it starts launching models equipped with 2.4, 2.5 and 3.0 litre engines. But he says the company will maintain its focus on the economy car segment over the short term.

Geely now has a total production capacity of 300,000 cars a year in Zhejiang and Shanghai. It is also planning to build new factories in Central China's Hunan Province and Northwest China's Gansu Province with a combined capacity of 200,000 units.

China is the world's third biggest and fastest growing vehicle market. Total vehicle demand rose by 14 per cent year-on-year to 5.74 million units in 2005, including 3.12 million cars.

All of the world's major automakers have built plants in China, and some are starting to export cars made on the mainland to foreign markets. Honda shipped 11,000 compact cars made in South China's Guangdong Province to Europe last year. The Japanese automaker expects to increase its exports from China to 25,000 cars in 2006.


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