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
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"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.
(For more biz stories, please visit Industry Updates)