Geely and Shanghai Launch Auto Design are making vehicle development and production services available to outside businesses, according to a report published in Brazil. The arrangements could help new entrants avoid building every capability—from engineering to factory operations—from scratch, though clients still need to establish their own brands and customer trust.
Geely set up its External Collaboration Research Institute (ECRI) to provide services and technologies to companies developing vehicles. Its offering can include engineering, dynamic testing, electrical and electronic architecture, software, LFP or NMC batteries, driver-assistance systems, component sourcing, complete vehicle production and after-sales support. By sharing parts and drawing on Geely’s purchasing and production scale, clients may also reduce costs.
Shanghai-based Launch Auto Design takes a more hands-on approach: a client brings a registered brand, and the company can manage work from styling and engineering through manufacturing. It can adapt an existing platform for different body designs or develop a vehicle from the ground up. Launch also offers CKD kits for export, enabling a client to begin local assembly in its own country.
The article presents these services as a shift from an industry in which access to established automakers’ capabilities was difficult for new players. But engineering access alone does not ensure success: the report highlights reputation, reliability, clear positioning, after-sales service and the ability to sell as essential challenges for any new marque.