BEIJING/SHANGHAI (Reuters) – A new electric car factory planned by the Chinese automotive Geely will produce cars from the luxury Polestar brand, a source told Reuters on Monday.
Geely, whose presented documents showed the intention to build a factory with an annual production capacity of 30,000 luxury electric cars in the western city of Chongqing, will be operated by a newly registered wholly-owned by Geely company.
The Geely’s plan comes as other automakers including BMW and Tesla expand production of electric cars into the world’s largest market, by supplying key components such as batteries and often exporting the final product.
Geely is one of the most famous automotive manufacturers in China. It owns the Volvo Cars and Lotus companies, nearly half of Proton and 9.7% of Daimler.
Polestar, one of Geely’s property, the company will manufacture Polestar 1 hybrid in western Chengdu and Polestar 2 sedans in Taizhou in the east.
It also plans to start the production of the Precept model, which will be shown at China Auto Shows this year.
Polestar aims to introduce modern luxury cars in its showrooms, which currently distributed in nine countries, and plans to expand them by the end of the year.
The CEO of Polestar told Reuters that the company is exploring markets in the Asia-Pacific region and the Middle East.
Reuters also reported that Geely is also building a new factory in China to manufacture Lotus SUVs.