Geely has plans for its own app to join the rush for China's ride-on-demand services, according to a Xinhua news agency report.

The report said that Geely has set up a new unit to develop a ride-hailing app that is currently on a trial run in the eastern Chinese city Ningbo, which will soon expand to include Shanghai, Hangzhou and Kunming.

Geely is planning a fleet of its own vehicles for the new ride-on-demand service. Several similar services are building their own fleets to sidestep regulatory uncertainties in the use of private cars.

The report said Geely is aiming for the high-end of the ride-on-demand market in first and second tier cities next year, seeing the service as a channel for potential consumers to get to know its vehicles.

Geely is planning a ride-hailing car fleet, consisting only of Geely and Volvos, of up to 150,000 vehicles, nearly one third of its annual production. The fleet will have 20,000 electric vehicles, the report added.