Key Takeaways:
Geely Auto is set to launch its new i-HEV technology on April 13, a move designed to challenge the dominance of Japanese brands in the hybrid vehicle market by offering a more cost-effective solution amid shifting electric vehicle policies.
"The broker expects Geely’s new-generation i-HEV intelligent dual engine technology to deliver stronger balance between low fuel consumption and power performance," a CMSI research report said, noting it will exert "competitive pressure on major Japanese brands."
The launch, titled "World Hybrid, China Power," comes as the value of hybrid electric vehicles (HEVs) grows. Unlike pure electric vehicles, which saw a purchase tax exemption reduced to 50 percent, HEVs use smaller batteries, making them less vulnerable to rising raw material costs and policy shifts. Geely's system is expected to compete directly with established players like Toyota and Honda.
For Geely (00175.HK), the i-HEV launch is a key catalyst. CMSI maintained an "Overweight" rating on the stock with a price target of HKD32, anticipating the technology will expand Geely's market share and extend its reach into overseas markets, providing a boost to the company's valuation.
This article is for informational purposes only and does not constitute investment advice.
