The capacity increase assumes significance since it ramps up production volumes as well as adds bigger cars to Geely’s product basket.
According to two sources familiar with the matter at hand, China’s Geely is putting in place a new auto manufacturing plant that will produce more than 2 million vehicles by 2020.
Zhejiang Geely Holding Group Co is one of China’s 5 biggest automakers and the owner of Sweden’s Volvo Cars. Geely is building the facility in China’s eastern port city of Ningbo where it already operates an assembly plant, said sources.
The capacity augmentation will enable Geely to produce nearly 250,000 more cars in a year from its Ningbo plant; it will also add larger cars to its lineup.
Once known for its opcycat designs, Geely’s ambitions grew after the Volvo deal. “The capacity increase underscores its ambitions as well as the shift in customer preferences toward bigger vehicles in China”, said sources.
According to information available on Geely’s site, the plant will have two assembly lines and Geely plans on spending $498.31 billion (3.4 billion yuan) for one of them.
The overall investment planned for the plant was not immediately known.