Shanghai (ZXZC)- Zhejiang Geely New Energy Commercial Vehicle Group (GCV), a wholly-owned subsidiary of Zhejiang Geely Holding Group, is going to acquire 15.24% stake in Hualing Xingma Automobile (Group) Co.,Ltd., an Anhui-based commercial vehicle manufacturer listed on Shanghai Stock Exchange, to make further advance in its push to boost CV business.

(Photo source: Zhejiang Geely Holding)

GCV will buy the aforesaid equity stake from Anhui Xingma Automobile Group Co.,Ltd. (called “Xingma Group” for short) and Ma'anshan Huashen Building Materials Industry Co.,Ltd., the controlling shareholder and a wholly-owned subsidiary of Hualing Xingma. According to Hualing Xingma's announcement, GCV has paid an earnest money of 30 million yuan ($4,231,670) to Xingma Group, and submitted a letter of intent and relevant documents required for the application.

There is still uncertainty regarding the final agreement about the equity transfer transaction and the governmental approval, said Hualing Xingma.

Upon completion of the above transaction, Geely would pile on more strength to its CV deployment. The Zhejiang-based company launched its new energy CV brand in 2016, and formally tapped the CV domain by buying out the stakes in Dongfeng Nanchong Automobile Co.,Ltd. with 407 million yuan ($57,276,000) in March of the same year. Currently, Geely New Energy Commercial Vehicle Group (GCV) possesses two core sub-brands—LEVC and Yuan Cheng Auto, and has been committed to the development of new energy clean commercial vehicles.

(Photo source: Hualing Xingma)

Acquiring a mature CV manufacturer seems to be an efficient approach for Geely to catch up with automakers like FAW Group and Dongfeng Motor in CV field. Located in Ma'anshan, Anhui province, Hualing Xingma Automobile is one of China's important R&D and production bases of heavy-duty trucks, heavy-duty special vehicles and relevant core parts, according to its self-introduction. It specializes in manufacturing the complete vehicles, chassis, powertrains and axles of heavy-duty vehicles, heavy-duty special vehicles, new energy CVs, buses and pertinent components.