8 January 2019, Coventry
LEVC (the London EV Company) and Geely New Energy Commercial Vehicles (GCV), LEVC’s parent company, have today announced a move to create a seamless portfolio of electric commercial vehicles for markets across the world. This new product strategy will create a line-up of electric commercial vehicles, with potential for more electric van derivatives for cities, as well as ensuring that the company’s electric commercial vans can be developed, manufactured and marketed globally.
There are now more than 1000 LEVC TX eCity electric taxis on London’s roads and the product has experienced export success in Germany and the Netherlands with total sales set to double in 2019. Building on this success the new combined global strategy will enable both LEVC and GCV to take advantage of substantial increases in demand for electric commercial vehicles over the next decade.
Chris Gubbey, CEO, LEVC said:
"With an urgent need for clean air in cities across the world, global demand for electric commercial vehicles is set to grow significantly, and this move represents a huge vote of confidence in LEVC by Geely. The creation of a new global strategy focused entirely on electric commercial vehicles makes strategic sense and will allow us the opportunity to create a wider range of new products. This move will help to increase choice, lower development and production costs.”
Faced with immediate market challenges related to the macro environment, whilst also recognising the substantial uplift in the market potential over the coming years, both GCV and LEVC conducted a thorough review of its electric commercial van strategy. Whilst it will remain independently run within the Group, LEVC will now work in closer partnership with GCV playing an important role globally in developing and proving new technologies in mature markets, that are now being exploited across the Group.
Geoff Dong, CFO, LEVC & Geely UK said:
"With the successful introduction of the TX eCity, LEVC has allowed us to prove our vehicle concept and technology in the toughest commercial vehicle market in the world. Our updated strategy is a demonstration of Geely’s continued commitment to the UK and investment in LEVC over the long term. We are essentially facing two opposing challenges, incredible growth in the potential for electric commercial vehicles, whilst there are some immediate obstacles related to our macro environment and intensifying competition. These twin dynamics enabled us to strengthen our strategy and create global alignment."
The new strategy will mean that the electric van will now come to market in the early 2020s. This decision does not affect production of the TX eCity, LEVC’s iconic electric taxi. LEVC has communicated to all relevant stakeholders and employees.
Ultimately this new approach, better strategic fit and potential for an expanded vehicle portfolio will allow LEVC, in partnership with GCV, to better meet customer requirements over the long term and to achieve our vision to become the urban commercial vehicle provider of choice.