Geely gets green light for APEC cars

New vehicles ready for delivery at a Geely Holding Group Co Ltd plant in Taizhou, Zhejiang province. Pan Kanjun / For China Daily

Diplomatic gatherings and international events are giving domestic vehicle producers a chance to raise their global profiles.

Zhejiang Geely Holding Group Co Ltd, which made its name in the global market with the successful acquisition of Swedish luxury car brand Volvo in 2010, became the first domestic player to be designated an official car supplier for APEC 2014.

The Asia-Pacific Economic Cooperation is a forum for promoting regional growth and trade. China is the host of APEC this year, and the nation is expected to host more than 100 APEC meetings and related events.

Geely will supply vehicles for the first senior officials' meeting from Feb 15 to 28 in Ningbo, Zhejiang province.

The company, which is privately owned by Chinese tycoon Li Shufu, delivered 45 of its Emgrand-branded cars to the meeting's committee on Monday.

Forty of those cars are EC8 models that will serve as officials' VIP limousines. The other five are EC7s for media use.

Also produced by Geely, TX4 taxis modeled along the lines of London's black cabs for the disabled, will join the meeting fleet.

"The choice of Geely for such an international event represents a groundbreaking milestone for China's struggling homegrown auto brands," said Liu Ge, a senior economic researcher and commentator at China Central Television.

"Being the official car will not only improve the brand awareness but also boost consumers' confidence in the vehicles."

Ma Yu, a senior researcher with the Chinese Academy of International Trade and Economic Cooperation (affiliated with the Ministry of Commerce), also noted the importance of selecting domestic brands as official cars for national-level events.

"Beyond making the vehicle sector a core industry for the world's fastest-growing economy, the Chinese government should also pay attention to supporting our own automobile brands," said Ma.

"Using Chinese-branded vehicles, not foreign or joint venture cars, at such national-level events, is a necessary and encouraging step."

In April 2013, a Hongqi L5 limousine produced by FAW Group Corp replaced the Audi to receive French President Francois Hollande during his official visit to China.

That move revived the popularity of the iconic Chinese car, which carried the first generation of China's national leaders, including the late Chairman Mao Zedong.

Moreover, in 2013, the Chinese government also tightened regulations for general official cars and military fleets to emphasize domestic brands.

Some high-level government officials have also started to change their cars.

Rao Da, secretary-general of the China Passenger Car Association, said that the government's decision to use more domestic brands for official cars and national events will set a good example for private buyers, helping local brands find a foothold among fierce competition with foreign rivals.

Statistics from the China Association of Automobile Manufacturers showed that, in 2013 total vehicle sales by domestic brands increased 11.4 percent to 7.22 million. Those brands accounted for 40.3 percent of the overall market, a drop of 1.6 percentage points.

Chinese automakers have lost market share for three consecutive years.

"Using domestic vehicles as official limousines also helps reinforce the Chinese automobile industry's capability in the eyes of the world," added Liu. "Selecting our own brands, over those from other countries, is a necessary condition of having a not only big but strong automobile industry."

He said that Chinese brands have improved a lot from a decade ago, when the Chinese government had to use foreign-branded vehicles produced by joint ventures, given concerns surrounding quality and brand reputation.

"It's time to open the door to Chinese brands, as some of them have produced vehicles with similar quality levels and technology as international brands," said Liu.

Yang Xueliang, spokesman for Geely, said that the company has also been in active discussions with committees for the second and third senior officials' APEC meetings in Qingdao, Shandong province, and Harbin, Heilongjiang province, to maintain its status as an official car provider.