Geely sets up a new-energy vehicle factory

KUALA LUMPUR: Chinese automaker Geely Auto's chairman, Li Shufu recently announced the company's plan to shift 90 percent of its production to hybrid EVs. To fulfill the purpose, Geely has set up a new-energy vehicle plant.

Why did Geely decide to shift its focus on EVs?

The Chinese automaker's decision to pay more emphasis on electric vehicles is based on the recent changes in the global auto industry wherein most of the automakers are introducing new EVs or existing models with EV tech.

Geely plans to expand its partnership in electric cars and has several EV associations too. For instance, in January, Baidu came into partnership with Geely Auto and the product of this association, a new EV will arrive in three years time.

Further, Xiaomi, the Chinese smartphone manufacturer is planning to foray into the EV market and its electric car project will be led by Lei Jun - Xiaami's CEO and founder.In 2018, Xiaomi launched an early project called 'Mocar' to explore the EV segment. Lei visited Elon Musk, Tesla founder twice in 2013 out of his interest in making electric cars.

As per Feng Shiming, an independent automobile car analyst, brands are facing expansion challenges in China to produce EVs effectively, like technological development and competition from international auto giants.

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In China, the New Energy Vehicle sector attracted a lot of attention. Several high-profile auto manufactures and even internet companies invested in the segment. In 2020, despite the pandemic, around 1.37 million EVs were sold in China, that's an 11 percent hike over year-to-year comparison, as per the China Association of Automobile Manufacturers.

By 2025, China has set a goal that EV's should encounter for about one-fifth of the total car sales. To achieve the same, the EV market needs to expand at least 30 percent each year for five years straight.

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