Geely’s Commercial Vehicle Arm Preparing Capital for Public Listing

Cailian Press learned from individuals familiar with the matter on Tuesday that Geely’s commercial vehicle arm has been considering a public listing plan and will introduce external investors to carry out the move.

Fan Xianjun, President of Geely Commercial Vehicle Group, said earlier that the company has made relevant arrangements in capital markets, and is likely to go public in the future.

At present, Geely Commercial Vehicle Group owns three major brands: Farizon Auto, Ouling Auto and CAMC. Among them, as the first commercial vehicle brand focusing on new energy power in China, Farizon Auto has formed two core technical routes – one is commercial highway vehicles powered by liquid hydrogen energy, while the other is methanol power and pure electric driving using power exchange technology. In addition, Farizon Auto has gradually formed three major car-making architectures: GLA, GHA and GMA.

In November of last year, Farizon Auto released its heavy duty truck, the “Xinghan H,” which will be mass-produced and delivered in 2024. This model is not only aimed at the Chinese market, but will also possibly be sold in Europe in the future.

In 2021, the overall sales volume of Farizon Auto increased by 288% year-on-year. Among them, the sales of new energy heavy duty trucks increased by 369.9%, ranking first in this market segment.

Geely has been actively exploring overseas markets in the field of commercial vehicles. In 2014, Geely acquired Emerald Automobile, a British electric vehicle manufacturer. It invested in Volvo’s truck arm in 2017 and built a 9.69% stake in Stuttgart-based Daimler in early 2018.

SEE ALSO: Geely Settles Plug-in Hybrid EV Project in Zhejiang

According to data by the China Passenger Car Association (CPCA), from January to March this year, the domestic sales volume of new energy commercial vehicles was 49,000 units, up 97.9% year-on-year, with a penetration rate of 5.1%. Among them, the sales volume of heavy trucks and light-weight passenger vehicles reached 4,728 units and 9,072 units respectively in the first quarter, with penetration rates reaching 3.9% and 14.4% respectively.