HANGZHOU, Zhejiang – Geely Holding Group announced on June 22 that it would reduce its stake in Ninghai Zhidou Electric Vehicles Co., Ltd.
The announcement came after Geely’s subsidiary Zhejiang Jirun Automobile Co., Ltd., Shanghai Maple Guorun Automobile Co., Ltd., together with Zhidou have signed a framework agreement with an independent third party investor to sell the former two companies’ partial stake in Zhidou. Currently they hold in aggregate 45 percent of the registered capital of Zhidou.
Established by Xindayang Mechanics Corp., Zhidou’s first EV model was launched in 2012.
But lack of production certificate made Zhidou EVs hard to enter the mass market. It cooperated with Zotye for a while before entering into an agreement in January 2015 with Geely, Xindayang and GSR Ventures to form Ninghai Zhidou. Since then, production and sales volumes for Zhidou EVs exceeded 30,000 units by far.
Open report shows that in 2015, Zhidou earned ¥3.398 billion in ($523 million) revenues, ¥103 million on profit with its 25,300 EVs sold.
Geely says it is fully confident on Zhidou’s future. The move will help Zhidou to win independent electric vehicle production certificate and compete by itself.
Geely also has its own EV plans. It hopes that its EV sales (including hybrids) can take more than 90 percent share in total vehicle sales with pure electric vehicles taking more than 35 percent by 2020.