Geely Targets Italian Market with Emgrand EC7 Launch
Chinese manufacturer Geely plans to introduce the Emgrand EC7 saloon and hatchback in Italy, aiming for 300 dealers and service centres over the next decade.
Geely, the Chinese carmaker owned by Zhejiang Geely Holding Group, has announced plans to begin selling vehicles in Italy. The company will introduce its Emgrand EC7 saloon as the first model for the Italian market, offering a left-hand drive configuration and a choice of 1.5-litre or 1.8-litre petrol engines. This marks a significant step for Geely as it seeks to establish a presence in Western Europe.
Geely's Expansion into Italy
Initial Model Line-up and Launch Plans
The Emgrand EC7 will serve as Geely’s debut model in Italy. This midsize four-door saloon is designed with European buyers in mind, featuring left-hand drive to suit local roads and driving habits. The initial offerings will include two petrol engine options: a 1.5-litre and a 1.8-litre. Geely has also announced plans to introduce the EC7-RV, a hatchback version of the Emgrand EC7, following the launch of the saloon. This approach aims to appeal to both saloon and hatchback buyers in the Italian market.
Dealer and Service Network Ambitions
Gianluca Gregis, representing Geely Italy, has outlined the company’s goal to establish up to 300 dealers and service centres across the country within the next decade. This extensive network is intended to support both sales and aftersales, signalling Geely’s commitment to building a long-term presence in Italy. The development of a large dealer and service infrastructure is seen as crucial for addressing concerns about parts availability and aftersales support, which are often significant barriers for new automotive brands entering established markets.
Challenges Facing Chinese Brands in Europe
Geely’s entry into Italy is part of a broader strategy to expand into advanced European markets, including the UK. However, the company acknowledges the challenges involved. Victor Yang, a Geely spokesman, stated that the company is still primarily focused on developing markets and recognises that competing in established European countries will take time. Geely's approach is cautious and incremental, preferring to gradually build its presence rather than make an aggressive push.
Industry experts have observed that Chinese car brands often face scepticism from European consumers, particularly regarding safety and reliability. Nikki Jones, director at consulting firm Calling Brands, referenced research indicating that UK consumers, and likely other Western Europeans, have concerns about these aspects of Chinese vehicles. This perception could present a significant hurdle for Geely as it seeks to win over Italian buyers.
Safety Ratings and Consumer Perception
The Emgrand EC7 achieved a five-star rating in the China-New Car Assessment Program (C-NCAP), which is the highest rating available in that programme. While this result demonstrates the model’s performance in Chinese safety tests, European buyers may look for reassurance from local or internationally recognised safety authorities before fully accepting the brand. Geely will likely need to pursue European safety certifications and demonstrate compliance with EU regulations to build trust among Italian consumers.
Implications for Italian Buyers and Dealers
For Italian buyers, Geely’s arrival brings a new budget-friendly alternative to the established saloon and hatchback segments. The company’s commitment to a widespread dealer and service network could help address common concerns about aftersales support and parts availability, which can be issues for new entrants. If Geely can deliver consistent service and reliable vehicles, it may gradually build a loyal customer base in Italy.
Italian dealers considering a partnership with Geely may find an opportunity to diversify their offerings, particularly if the brand succeeds in attracting value-conscious customers. However, much will depend on how quickly Geely can establish a reputation for quality and meet the regulatory requirements of the Italian and wider European markets. The initial focus on the Emgrand EC7 and its hatchback variant suggests Geely is targeting mainstream buyers rather than niche segments.
Geely's Broader European Strategy
Geely’s expansion into Italy is part of a wider European strategy, with similar plans announced for the UK market. The company’s gradual approach reflects an understanding of the complexities involved in entering mature automotive markets. By focusing on building a robust dealer and service network and introducing models that meet local preferences, Geely aims to lay the groundwork for long-term growth in Europe.
The move also comes at a time when the Italian car market is experiencing challenges, with forecasts indicating a possible decline in new car sales due to broader economic conditions. In this context, Geely’s budget offerings may appeal to cost-conscious buyers looking for alternatives to established brands.
