Zhejiang Geely Holding Group (Geely) is reported to be aiming at doubling its vehicle exports from China this year to between 40,000-50,000 units
At a shareholder’s meeting held last week Geely Automobile Holdings Group’s CEO Gui Yuesheng, said the goal would boost total sales to 480,000 from last year’s figure of 415,800, a 15% increase. That figure included 22,653 export car sales.
The announcement follows a wider move in the Chinese vehicle sector to increase vehicle exports over the next five years as it enters its 12th Five Year Plan period, with carmakers targeting both developing markets, such as Brazil, and more mature sectors such as the US.
As outlined at the most recent Automotive Logistics China conference in Shanghai, held at the end of April, the next five years will focus on building in quality to the services on offer and developing new provisions for export activity (read more here).
Total vehicle exports from China are on the rise again, with 550,000 vehicles forecast for this year, a rise of more than 69%. That said, there is plenty of scope for growth given that exports only account for 3% of China’s total production of between 18-20m. What is limiting export potential to mature markets in the West according to some, however, is the sheer demand for vehicles in the domestic market, as well as the requirement for higher emissions and safety standards in North America and Europe.
For its part, Geely is already exporting to Bangladesh, Cuba, Indonesia, New Zealand, Pakistan, Romania, Turkey and South Africa car markets. The company also recently announced it was beginning exports to Australia. Two MK variants are being brought in by Chinese Automotive Distributors for Western Australia.
The company is also looking for logistics services for CKD exports as it aims at setting up more than 15 plants overseas by 2015.
Geely is aiming at a total annual production of 2m units by then from both full production and CKD assembly, excluding output from the Volvo business it took over in August last year. That logistics support is unlikely to include 3PLs, at least when it comes to ocean transport, said the company.
