Geely aims to become China’s largest auto exporter in two
years, overtaking Chery by focusing on expansion in developing countries. The
Chinese carmaker plans to open factories in Belarus and Uruguay this year, Gui
Shengyue, chief executive officer of Geely, said in a television interview in
Hong Kong on Monday.
“I am confident we will be able to become the largest Chinese exporter among the domestic brands in two years,” Gui said. Developing-market sales will lay a foundation for expansion into more mature economies, he said.
Geely, ranked ninth among Chinese auto exporters by 2011 shipments, would have to increase overseas sales more than fourfold to surpass Chery’s 158 900 units based on China Association of Automobile Manufacturers data. Geely, Great Wall Motors (2 333) and Warren Buffett-backed BYD Co (1 211) are turning to exports as slowing sales growth in China threatens to exacerbate overcapacity in the world’s largest vehicle market.
Geely stock has climbed 81% this year and outperformed the 14% gain in the benchmark Hang Seng Index in Hong Kong.
China’s vehicle sales this year will probably miss their 8% growth forecast as the slowing economy and rising fuel costs curb buying, said Gu Xianghua, deputy secretary general of the state-backed China Association of Automobile Manufacturers.
Geely is targeting to sell mid- to low-end cars in overseas markets, where demand is greater than in China, according to Lawrence Ang, a Geely executive director.
Chinese factories could build 40 million vehicles a year by 2015, outstripping domestic demand of about 27 million, according to the National Development and Reform Commission, the top planning agency.
Geely has said it is targeting to have at least half of its sales coming from overseas by 2015. Vehicle shipments overseas by Geely rose to 38 000 units in 2011, according to the industry association’s data. Chery, which has a joint-venture agreement with Tata’s Jaguar Land Rover luxury unit, was China’s top exporter last year.
Geely will probably win at least 10% of government orders for official cars in China, Gui said. He estimates the market to be between 300 000 to 500 000 units a year.
STORY BY GEELY
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