Lingling Technologies will be launching new EV soon
With the Zeekr, the Geely subsidiary aims to compete with Tesla in the future.

China's Geely will launch high-end cars under the - Zeekr brand to compete with established EV player Tesla Inc (NASDAQ: TSLA). Volvo (OTCMKTS: VLVLY) owner Geely will produce the new line of electric vehicles in a JV called Lingling Technologies. Geely also owns a 9.7% stake in Daimler AG. The new models will be built with an open source EV chassis. Geely is trying to fulfill its chairman and founder's ambition - Li Shufu - to make high-end cars like Mercedes Benz to rival Tesla. Just like Tesla, Geely will inaugurate hubs or showrooms in the center of cities to market cars. This differs from the traditional way of selling vehicles through dealers. Tesla quickly gained a foothold in China with the same model and increased its market share. An LMC Automotive analyst Alan Kang said EVs and traditional gasoline cars are two lines of business for automobiles. Since Geely doesn't have a clear advantage in EVs, it plans to develop innovative technologies under a new brand to compete with Tesla. EV manufacturer Nio Inc. sells EVs at higher prices in the Chinese market. The automakers in China compete with big players like Toyota and Volkswagen. Geely will also open clothing lines and accessories in addition to introducing car owner clubs to cultivate a deeper relationship with the EVs buyers. Zeekr is also considering ownership plans to turn buyers into investors in Lingling. SAIC Motor and Great Wall, Geely's competitors, have launched stand-alone EVs in China. China is promoting NEVs (New Energy Vehicles) such as hybrids (gasoline and electric versions), battery-powered and hydrogen-powered cars to control air pollution and curb global warming. The demand for NEVs is expected to increase from currently 5% to 20% of Chinese auto sales by 2025. Ford Motor Company has made a decision to end plans to form a JV in China with Zotye Automobile. The company justified this with various government and electric vehicle industry policies since the agreements were signed in 2018 and 2017. Ford will choose a flexible business model to operate its auto business in China.





