Zhejiang Geely Holding Group plans to launch a new brand next year, according to local reports in China, citing company insiders.
The new brand, referred to temporarily by the codename L, will be used for new vehicles developed in collaboration with the company's Swedish subsidiary Volvo Cars.
Geely hopes the new brand will help it compete more effectively with foreign brands such as Chevrolet and Volkswagen in its domestic market – initially at least. The Volvo brand will remain the company's main luxury brand globally, however.
The first vehicle to use the new brand will be a new SUV to be launched next year, based on the Compact Modular Architecture platform under development jointly by Geely and Volvo.
A new passenger car model is also under development, using the same modular platform architecture, for the new brand.
Geely said it outperformed in its domestic market in last year. Global sales rose by 22% to 510,000 vehicles in 2015 and further growth is expected this year.