Chinese Geely enters Europe market via Turkey

Distribution of Geely, the second Chinese automobile brand to enter the Turkish market, is about to begin.

Chery was the first Chinese automobile to enter Turkey with the Mermerler Group, which lead the way for others. Now, as of mid-November, Turkey's Anadolu Group is planning to launch the distribution of Geely, the first independent automobile manufacturer in the People's Republic of China, which started production 10 years ago.

Turkey will be an important contributor towards Geely's target of becoming a global giant, said Shufu Li, founder of the firm. "We are stepping into Europe via the Turkish market. We will learn a lot about the European market from Turkey and our distributor, the Anadolu Group," he said.

"We will develop our European strategy based on Geely's development in Turkey, which has the same standards as Europe. Should the Anadolu Group also approve, we would like to expand together into other European markets."

Li noted that Turkey would be the priority candidate for the firm if production demand emerges in Europe.

The Anadolu Group's subsidiary Anadolu Araçlar & Ticaret will begin selling two models of Geely in mid-November. The company, which will sell the brand at 25 outlets nationwide, will add five new stores in 2009, said Kamil Eser, chairman of the automotive group at Anadolu Holding.

The firm has changed the names of the models they will be exporting to Turkey, he said. "In Turkey, we will import the CK model under the name of Echo, and MK as Familia. The price of Echo in the B segment will start from $10,000."

"We are targeting people for whom it would normally be difficult to purchase new cars. We have invested in Geely's future. It is not very important for us to make profits for the time being. Based on developments in the first year, we may reach a sale figure of between 3,000 - 5,000 units. We expect a market share of 1 percent to 1.5 percent."

Geely, which ranks as the eight top-selling company in China, aims to enter the top three soon, Li said. The firm plans to increase its annual car production capacity from 300,000 units to 2 million units within the upcoming seven years, he said, and added,

"We will increase the number of our factories from six to nine by 2012." The firm aims to invest $15 billion within seven years.

Geely, which currently features five models, will gradually add new models, Li said, noting that "the market will have 42 models by 2015." Besides its existing categories, the firm also plans to add new segments, such as MPV, a mid-size sedan, SUV, Minivan, luxurious sedan, he added.

"We would like to be a global brand just like Toyota. We will make the products at locations close to the market, and develop our models and technology in line with demand. We will produce many models at a low cost, just like Toyota."

Li believed that the global crisis may create opportunities for Chinese firms. "While global giants are losing blood, we are able to control the situation. The crisis may create an opportunity for China. We would like to have a voice in global markets by producing cheap, quality and high technology vehicles. We do not want to purchase international brands that face distress in this climate."