China’s Geely Automobile plans to cut its stake in Ninghai Zhidou Electric Vehicles Company, a manufacturer of electric city cars locate in Lanzhou, in China’s north-western Gansu province.
Hong Kong-listed Geely currently controls 45% of Zhidou’s equity through two subsidiaries, Zhejiang Jirun Automobile Company and Shanghai Maple Guorun Automobile Company.
The move will allow Zhidou to compete independently in the local market. Under its current shareholder status, Zhidou has to operate in the local market under the Geely ZD brand. As an independent entity, Zhidou will get additional benefits including an independent listing in China’s new energy vehicle catalogue.
Zhidou makes two-seater electric vehicles for the fast-developing urban car rental sector, retailing at between CNY30,000- 50,000 (US$4,500 -US$7,500)
Local reports suggest it registered over 25,000 units last year, but sales are understood to have fallen sharply this year. The company has set a lofty target of selling 500,000 units per year by 2020.
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