Chongqing - Zhejiang Geely Holding Group Co., Ltd. and Chongqing Changan Automobile Co., Ltd. recently signed a strategic cooperation framework agreement and both will work on industries such as new energy, smart development, and overseas expansion.
In the new energy field, both sides will cooperate on battery cells, charging and swapping technology, new energy vehicle product safety, and the layout of the new energy industry, While in the field of smart development, they will cooperate on chips, operating systems, vehicle connectivity, high-precision maps, autonomous driving, and more.
Both enterprises will share forward-looking technology applications by developing power platforms and power technologies and carrying out cooperation in industrial Internet, blockchain, carbon trading, and other fields.
Zhu Huarong, Chairman of Changan Automobile, said in the future, they will leverage their respective strengths, share resources, bring better services and experiences to global users, and promote the high-quality development of the automotive industry.
Li Shufu, Chairman of Zhejiang Geely Holding Group Co., Ltd., said that Geely and Changan work closely together, increase investment, and provide more innovative exploration for the industry.
According to Fu Bingfeng, Executive Vice Chairman and Secretary-General of the China Association of Automobile Manufacturers, China's automobile industry is transitioning from following to leading and is at a critical stage of transformation and fast development.
Fu thinks the open cooperation between Changan and Geely is conducive to creating a large brand image of China's automobile industry and fostering industry synergy.
Data shows that the total sales of domestic cars in 2022 were 20.543 million units, with Changan Automobile selling 1.6772 million units and Geely selling 1.2648 million units, ranking third and fifth, respectively, on the sales chart, with a combined market share of 14.32%.
Currently, both Geely and Changan are accelerating their transformation to new energy. The official plan shows that Geely's total sales target for 2023 is 1.65 million units, striving to achieve a doubling of overall new energy sales, exceeding 600,000 units.
Changan Automobile has also stated that it aims to achieve the production and sales of over 2.53 million vehicles in 2023 and plans to launch more than ten new energy products throughout the year.
The strategic cooperation between Geely and Changan is expected to become the first case of a partnership between China's leading private automobile company and a state-owned automobile company.
Before this, there were precedents for cooperation between state-owned automobile companies such as FAW, Dongfeng, Changan, and SAIC, but most were limited to technical cooperation or cooperation in segmented businesses.
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