Manufacturing News

Geely, Great Wall to sell low-cost cars in U.K.

Zhejiang Geely Holding Group Co. and Great Wall Motor Co. will use the United Kingdom as a testing ground for a push into Europe.

The two Chinese automakers will launch inexpensive vehicles in the United Kingdom this year. The companies believe they can benefit from growing demand for low-cost vehicles during tough economic times.

The Chinese companies also want to take advantage of a move upscale by South Korea's Hyundai and Kia brands.

In recent years, attempts by Chinese automakers such as Brilliance China Automotive Holdings Ltd. and Jiangling Motors Corp. to gain footholds in Europe failed when their vehicles received poor safety ratings.

This time, the newcomers are making sure their cars meet western safety standards. Geely's Emgrand EC7 compact recently earned four of five stars in the Euro NCAP, or New Car Assessment Program, safety testing.

The Emgrand EC7 will go on sale in the United Kingdom by year end. It is similar in size to the Hyundai i30 but its price will start at 10,000 pounds (100,300 yuan) compared with 13,780 pounds for the i30.

Great Wall will launch its Steed double-cab pickup in the United Kingdom this month through a network of 35 dealers. The Steed will cost 13,998 pounds for the standard model, compared with 16,049 pounds for the entry version of the market leader, the Mitsubishi L200 double-cab.

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