Geely Adding Capacity for Larger Vehicles

Zhejiang Geely Holding Group Co. is erecting a second factory in Ningbo, China, that will produce as many as 250,000 relatively large vehicles per year, sources tell Reuters.

The move to larger cars and crossover vehicles aligns with the growing aspirations of Chinese consumers, according to the news service. It says the new plant also will support the launch of the Lynk & Co brand Geely is launching with its Volvo Cars unit.

Geely says the new facility will have two production lines, one costing 3.4 billion yuan ($498 million). The company has not indicated the cost of the entire factory.

Geely aims to achieve annual sales of 2 million units by 2020 compared with an expected 1.6 million vehicles in 2018.