Geely South Africa Seeks Expansion to Introduce Third Independent Brand

China Geely Automobile is embarking on the expansion of its business scope and scope in South Africa, and plans to increase sales and brand influence in the region through the introduction of new cars and other independent brands.

It was not long before the new CEO wanted to introduce a third self-owned brand. Henry Meistre, formerly the Great Wall Motors South Africa executive, succeeded John Jessup as CEO/General Manager of Geely Automotive in South Africa. The new Mestre is committed to the expansion of Geely in South Africa. Since the breakdown of cooperation with former distributors in 2009, Geely hopes to revive its business in South Africa. Geely’s distribution rights in South Africa are owned by Hallmark and the Magic Group, both of which operate multiple brands’ sales operations in South Africa.

In an interview with South African media, Mestre pointed out that Geely must achieve more than 2,000 annual sales in South Africa to achieve profitability. It said: "If we get the necessary supply in terms of inventory and models, we will reach the level of best performance in South Africa before. We must build the company's business in order to maintain long-term sustainable development."

One of the ways to achieve the expansion is to introduce other brands besides Geely. At present, Geely's business in South Africa has introduced Dongfeng Xiaokang (DFSK) models. The latter's products cover pickups, microfabrics and vans. This was 69,990 South African Rands (approximately RMB 55,102).

Mestre said: "After the introduction of Dongfeng Xiaokang models, we will soon achieve monthly sales of 300. In the next 12 to 18 months, we will reach annual sales of 3,000. However, the annual sales of 5,000 vehicles It sounds worth looking forward to, but we also need more new products."

This also means that Geely will introduce the third independent brand outside Geely and Dongfeng Xiaokang in South Africa. Mestre said: "In order to get our dealers to get the business they are looking for, we may add a third brand so that they will be able to distribute the business of Geely, Dongfeng Xiaokang and another brand. The third brand will be a Traditional vans (including single and double row layouts) and SUV brands."

However, one of the problems is that South African cars are driven on the right side and on the left side, and the corresponding vehicles provided by Chinese domestic brands do not have obvious advantages in terms of quality and price. Mestre complained: "If China is like other right-drive countries, then we will have more opportunities."

In addition, Geely currently in South Africa is still negotiating the introduction of the pickup truck type into the South African market, but there is no detailed information.

Geely will introduce more new cars and expand its distribution network. The Geely brand will expand its product lineup in South Africa. It will introduce more new cars in the future, and building a distribution network will also be one of the key points.

According to Mestre, Geely will introduce the British SC5 small sport hatchback to the South African market from September to November this year. The car will compete with entry-level models such as Ford Figo and Volkswagen Polo Vivo.

The 1.8-liter EC7 will enter the South African market earlier than the SC5. The car will compete with the modern Elantra and other models for the market, and is also an entry-level model for Geely's entry into the European market.

Whether or not the GX7 will enter South Africa depends on whether Geely is willing to produce a right-seat model for the model. The car may enter the South African market in the second half of 2013. Mestre commented: "This will be Geely's first SUV in South Africa with beautiful and masculine appearance."

Geely currently sells 1.3-liter Panda LC models in South Africa, and the next 1.0-liter LC hatchback will also join the ranks.

Geely currently has 33 distributors in South Africa, and this number will reach more than 40 in the next six months.