{"text":[[{"start":12.66,"text":"Tesla’s success in China is a surprise for the country’s own exporters. "},{"start":16.977,"text":"Its aggressive price cuts have made it highly competitive and it will continue to dominate rankings, at least in the short term. "},{"start":23.344,"text":"Now Geely has decided to fight back with its own premium electric models. "}],[{"start":28.02,"text":"Tesla’s Model 3 was the best-selling electric car in China last year. "},{"start":32.262,"text":"The US group has held on to its lead this year. "},{"start":35.117,"text":"The Model 3 and Model Y were the second and third most popular cars with buyers last month. "},{"start":40.197,"text":"Local makers have struggled to keep up. "},{"start":42.513999999999996,"text":"Indeed, Geely’s plans for its premium EV brand, Zeekr, underscore the fact that its current model line-up can do little more against Tesla. "}],[{"start":50.86,"text":"The strategy makes sense. "},{"start":52.902,"text":"Geely, which holds a 9.7 per cent stake in Daimler and owns Volvo Cars, has form in the premium segment. "},{"start":59.582,"text":"China accounts for about a fifth of global luxury demand. "},{"start":63.049,"text":"The trend of buyers trading up remains strong. "}],[{"start":66.7,"text":"In the petrol car market, high-end import cars made up more than half of total sales in major cities last month. "},{"start":73.092,"text":"Local sales growth of Lexus, Toyota’s premium brand, outpaced that of its standard models last year. "},{"start":79.034,"text":"Yet most of China’s electric car models compete in the lower price segment. "}],[{"start":83.48,"text":"Smaller rival Nio has set an encouraging precedent, selling higher-priced models. "},{"start":88.422,"text":"Last month, even when rivals such as Xpeng Motors in the entry-level market recorded sharp declines in sales, shipments for Nio almost doubled compared with January. "},{"start":97.339,"text":"And Geely has money to invest. "},{"start":99.482,"text":"On analyst forecasts, the group should have free cash flow in excess of $1bn annually through 2023. "}],[{"start":107,"text":"Moreover, the Chinese group should have a home team advantage. "},{"start":110.804,"text":"Local electric car makers have long been favoured by China’s government. "},{"start":114.634,"text":"Beijing’s electric car subsidies have been extended to 2022. "}],[{"start":118.88,"text":"Shares of Geely have more than doubled over 12 months, reflecting expectations of further growth potential in the local markets. "},{"start":125.822,"text":"Zeekr may not topple Tesla from its place in the sales ranking. "},{"start":129.402,"text":"But a premium electric brand should at least boost Geely’s margins — as Lexus has for Toyota. "}],[{"start":135.44,"text":"Our popular newsletter for premium subscribers Best of Lex is published twice-weekly. "},{"start":140.357,"text":"Please sign up here. "}],[{"start":141.71,"text":""}]],"url":"https://creatives.ftacademy.cn/album/001091903-1616562366.mp3"}