China’s Carmaker Geely eyes online car sales
24 December 2010
Geely, a Chinese automaker, is to sell vehicles through e-Commerce portal Taobao, in an online retail deal. The firm will sell its Gleagle cars on the website, with the Geely Gleagle Panda, a compact model, to go on sale from December 22. A special-edition Panda will be available via the portal under a group-buying system, whereby a certain number of buyers have to sign up in order to pay a reduced price.
The initiative reportedly makes Geely the first automaker to set up a permanent sales operation on Taobao.
China now has the world’s largest internet market, with over 420m users, and its e-Commerce operations are expanding rapidly. Chinese car sales passed those of the US for the first time in 2009.
Mercedes-Benz turned to Taobao in September to sell 205 Smart Fortwo cars at a 23% discount using a group-buying system. The models sold out within three hours.
Geely’s Taobao presence offers information on the cars plus an ordering system. Buyers must pay a small deposit of 288 yuan ($43, €32) on Taobao, with purchases to be completed at a local showroom.
e-Commerce could represent an increasingly attractive channel for cost-conscious automakers.
