Image: Wikimedia Commons
Chinese automaker Geely Auto has struck a major deal with Ford Motor to jointly use Ford’s large manufacturing plant in Valencia, Spain, to build multi-energy (petrol, hybrid and electric) SUVs for Europe. According to the announcement, the joint venture is slated to start operations in 2027, with the first Geely and Ford models rolling out from 2028.
What the Ford–Geely JV will build
- Ford will produce three SUVs, including the current Kuga crossover, a new compact Bronco-family SUV from 2028, and an all‑new crossover co-developed with Geely.
- Geely will build two new energy vehicles (NEVs) at the same plant, starting in 2028.
- The first Geely SUV planned there is the EX5 (sold as Galaxy E5 in China), already introduced in some European markets.
Ford will hold 66% of the venture, with Geely owning 34%, turning the under‑utilised Valencia site (capacity about 5 lakh units a year) into a shared hub and securing local jobs.
Why this matters for Nepal
Nepal’s market relies heavily on imports from China and India, and a growing number of Chinese brands or China-based platforms are indirectly shaping what reaches our roads. While Geely-branded cars are not yet officially sold in Nepal, the company is:
- Owner of Volvo Cars, which is slowly expanding EV and plug‑in hybrid offerings globally.
- A key technology and platform supplier to other brands that could eventually enter Nepal via Indian or regional distributors.
By setting up local production in Europe, Geely can avoid EU tariffs on China‑made EVs and cut shipping costs. This should help the brand scale up and stabilise its global EV business, which in turn can:
- Strengthen Geely’s finances and technology, making its platforms more attractive for partner brands.
- Speed up development of EV and hybrid SUV architectures that might later be used in India‑built or ASEAN‑built models, some of which are typically re‑exported to Nepal.
Possible impact on prices and choice
In the short term, Nepali buyers will not see a direct price change, as the Spain‑built EX5/Galaxy E5 and Ford Kuga are aimed at Europe and would be too expensive if imported here.
In the medium term, however, strong European volumes could help Geely amortise R&D and battery costs, making future mass‑market EV SUVs based on the same GEA platform cheaper to build in Asia. If Geely or its partner brands use those platforms in India or China and then export to Nepal, we could see:
- More competitively priced compact and mid‑size EV SUVs in the Rs 35–60 lakh bracket.
- Improved safety and efficiency, as European-spec models often drive up global standards.
Bottom line for Nepali readers
- No immediate launch in Nepal has been announced from this JV.
- The deal does show that Chinese EV technology is going mainstream in Europe, which is positive for long‑term affordability and variety of EV SUVs that could indirectly reach Nepal.
- For now, buyers here should watch how Geely’s EX5/Galaxy E5 evolves in Europe — its tech and platform may hint at the kind of next‑generation Chinese EV SUVs we might eventually see via Indian or regional imports.
Current prices on Nepal AutoMart
- Geely Galaxy EX5 price in Nepal: Rs 58.99 lakh – Rs 67.99 lakh ex-showroom, 2 variants
Written and analysed by Ajit Narayan Singh, Editor at Nepal AutoMart, from ongoing tracking of the Nepal automotive market.
