“If we’d known in advance, we would have planned for 10,000 cars.” Svidersky on demand for the Geely EX2 – Auto Online

“If we’d known in advance, we would have planned for 10,000 cars.” Svidersky on demand for the Geely EX2 – Auto Online

“If we had known in advance, we would have included 10,000 cars in the plan.” Svidersky on the demand for the Geely EX2

Source: Boris Samkovich. Photo: Boris Samkovich

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The Belarusian Energy and Environmental Forum — Energy Expo — started in Minsk today. Along with many companies in the industry, BelGee CJSC is also taking part in the exhibition. The director of the company Gennady Svidersky answered questions from an Onlíner journalist about the market situation, delivery times for the popular model to customers, and the fight against parallel imports.

On the sale of electric Geely and Belgee

— Gennady Bronislavovich, how are sales of electric models of Geely and Belgee going, how fast is this segment growing?

— This year we are seeing very dynamic growth in the Geely and Belgee segments. Regarding the Belgee brand, we are currently producing the X80 model—a crossover with a hybrid powertrain. As for pure electric vehicles, the plant is assembling the EX5 and EX2 models.

— By the end of this year, we plan to sell approximately 20,000 vehicles with electrified powertrains on the Belarusian market. Of this volume, about 15 thousand will be pure electric vehicles, and the remaining 5-6 thousand will be hybrids.

— Many are interested in the issue of expanding the “green” line.

— We are currently forming a production plan. As you know, 60% of our company’s shares are state-owned and 40% are owned by Geely, so all strategic decisions are approved by shareholders. We have an annual meeting scheduled for November, where we will officially approve sales volumes and expand our model range.

However, the future largely depends on the conditions that will be created in the domestic market. According to the latest data from the Belarusian Automobile Association (BAA), today the conditions for selling electric vehicles in the country are 39 times more attractive than for cars with classic internal combustion engines. This is an excellent incentive.

— We remain staunch supporters of localizing the production of electric vehicles in Belarus. But to move forward, it is necessary to revise the tariff policy and abandon the quotas that existed in previous years, especially since neither Russia nor Kazakhstan actually used them.

— To convince a major investor to invest in local production, they need to guarantee that creating cars here is more profitable than simply importing ready-made electric cars from abroad.

It is based on the regulatory conditions that the state will approve next year that we will build our future production program.

A month’s wait

— They say the waiting list to buy the EX2 model can be up to a month or even longer.

— We see tremendous growth in demand for the EX2 electric crossover. The numbers speak for themselves: while volumes were around 700 units in the first quarter, they were already 1,500 in the second and 2,000 in the third. Seeing this trend, we have planned to produce over 3,000 cars for the fourth quarter, which will quickly enter the dealer network.

Of course, customers are currently facing queues. Some people value a specific body color, while others prefer a specific trim level. It’s important to understand the specifics of our production: the logistical reach is quite long. In China itself, this model sells out at a rate of 50,000 units per month. We can flexibly plan for tomorrow, but we can’t restructure processes “today for today.” It’s like the banking system: if absolutely every depositor came to withdraw their money at once, no bank in the world could withstand such an influx. The plant operates according to similar economic laws.

Therefore, I want to emphasize two important points. First, the fourth quarter will be a record-breaking year for us in terms of production and sales volumes. Second, the cars are available in the dealer network, as are those in the plant’s finished goods warehouse. I expect that we will fully balance the increased demand and close it within the current quarter.

— And yet, how long do you have to wait for the EX2 model today from the moment you sign the contract?

— As far as I know, the average wait is about a month, sometimes a little more – especially if the buyer is looking for a specific color that is not available right now. But if we used to ship 2,100 cars per quarter, now we’re shipping 3,000 at a time—a thousand more. It would have been virtually impossible to predict such explosive demand at the beginning of the year. Had we known about this in advance, we would have included all 10,000 cars in our plan, but that scenario didn’t seem obvious at the start.

Geely Import Restrictions

— Back in September, news broke that there was a restriction on the import of Geely cars into Belarus, and that only BelGee CJSC had the exclusive right to supply them. Why does the company need this?

— The issue of import restrictions is a global practice and applies exclusively to legal entities. Since we officially represent Geely in our market, provide service, and are fully responsible for the brand, exclusive rights are primarily aimed at protecting the brand’s reputation. Moreover, China itself has now made a strict decision: if there is no certified service center on the regional market, the Chinese government simply will not issue a permit to export cars to that country.

— As for individuals, these measures do not affect them—ordinary buyers will not have any problems at customs; they can import cars in the same way as before.

— The use of the Geely trademark in advertising in Belarus is also part of our exclusive rights. Only the factory and the official dealer network can legally use the brand.

— But is import control really that important if the demand for your products already exceeds supply?

— I wouldn’t call this a fight against importers on the part of the factory — ultimately, it’s the buyer who decides. Individuals have the right to import whatever they want, and we do not compete with them.

— Restrictions for legal entities are not a decision of the BelGee plant, this is a global strategy of the Geely corporation itself, which fiercely fights for the value of its brand.

— Geely has always strived to create a world-class product and protect the interests of car owners. This is not a banal competitive struggle for market share, but a guarantee that customers have no doubts: in this brand, quality and official service always come first.

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Source: auto.onliner
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