Fortune 500 Chinese car manufacturer enters Sri Lanka

Geely, the Fortune 500 Chinese automotive multinational that now owns 100% of Sweden’s Volvo and part produces the famed London’s black taxi cabs, is entering Sri Lanka.

“We warmly welcome Geely to Sri Lanka. Geely’s entry in collaboration with our ‘Sri Lankan pride’ Micro Cars will significantly enhance our automotive industry’s profile, but more importantly shows that Sri Lanka has won the confidence of the giant global automotive manufacturing industry,” announced Minister of Industry and Commerce Rishad Bathiudeen on 25 October.

Minister Bathiudeen announced this in the aftermath of the courtesy call (followed by in-depth discussions) by the special investment team of Shanghai’s Geely International Corporation led by Martin Xiang, Director of Geely, at the Ministry of Industry and Commerce in Colombo.

Along with Geely reps, Micro Cars Ltd. Chairman Dr. Lawrence Perera also took part in the discussions, which were also attended by top Ministry officials including Ministry of Industry and Commerce Secretary Anura Siriwardene and several Directors of the Department of Commerce.

The $ 23.3 b (2011 revenue), Geely entered the Fortune Global 500 list at 475 last July, and is considered as one of China’s fastest growing car makers, holding part ownership of famed black taxis of London and owning 100% of Sweden’s Volvo.



Geely also owns the Australian automatic transmission supplier Drivetrain Systems International.

“We are the third largest Chinese car brand in China and seventh ranking in overall Chinese automotive market. Apart from China, we also have production bases in Russia, Ukraine and Egypt,” revealed Xiang.

He added: “We have realised that Sri Lanka has become a key market, but more importantly, a manufacturing hub in the South Asia for car makers, especially due to its strategic placement. We are now working towards a Joint Venture initiative with Sri Lanka’s Micro Cars Ltd. We want to use Sri Lanka as our production hub and to export to South Asia and the Far East from here. We want to assemble here first and later we want to start total manufacturing processes. Initially we are considering an assembly line with $ 20 m in shared investment with Micro Cars and 500 new employment opportunities in automotive manufacturing. Our new plant is being planned in Hambantota. We are trying to start work on making the factory from mid-2013 and complete Phase I by end of 2014 so that we can rollout the first car in January 2015. We also believe that we can convert and equip Sri Lankan workers with true automotive manufacturing skills,” Xiang apprised Minister Bathiudeen.

Minister Bathiudeen said: “The Industry and Commerce Ministry as well as the Government warmly welcome Geely to Sri Lanka and we fully support Geely’s investment initiatives here. Geely’s entry in collaboration with our Micro Cars will also significantly enhance our automotive industry’s profile which, as the Industry Minister, I am pleased to fully support. It is very important that Geely rightly understood our export manufacturing hub potential and the importance of our strategic placement. I request Geely to use our Indo-Lanka Free Trade Agreement and Sri Lanka-Pakistan Free Trade Agreement to export to these two huge markets from Sri Lanka, after which Geely can expand its exports to other South Asian markets from here, thereby contributing to our exports basket. When it comes to employment provision, I keenly urge Geely to consider employing Sri Lankan graduates.”

Micro Cars Ltd. Chairman Dr. Perera said: “Micro Cars has come a long way in Sri Lanka and now it is also a global name, which is why China’s number three Geely is joining hands with Micro Cars as a JV to start in Hambantota to export to South Asia and the Far East. The overall cost of Phase I is around $ 28 m, of which Micro Cars will be investing a minimum of $ 10 m.”