{"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":28.52,"text":"Tesla’s Model 3 was the best-selling electric car in China last year. "},{"start":32.762,"text":"The US group has held on to its lead this year. "},{"start":35.617,"text":"The Model 3 and Model Y were the second and third most popular cars with buyers last month. "},{"start":40.697,"text":"Local makers have struggled to keep up. "},{"start":43.013999999999996,"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":50.870000000000005,"text":"The strategy makes sense. "},{"start":52.912000000000006,"text":"Geely, which holds a 9.7 per cent stake in Daimler and owns Volvo Cars, has form in the premium segment. "},{"start":59.592000000000006,"text":"China accounts for about a fifth of global luxury demand. "},{"start":63.059000000000005,"text":"The trend of buyers trading up remains strong. "}],[{"start":66.71000000000001,"text":"In the petrol car market, high-end import cars made up more than half of total sales in major cities last month. "},{"start":73.102,"text":"Local sales growth of Lexus, Toyota’s premium brand, outpaced that of its standard models last year. "},{"start":79.04400000000001,"text":"Yet most of China’s electric car models compete in the lower price segment. "}],[{"start":83.99000000000001,"text":"Smaller rival Nio has set an encouraging precedent, selling higher-priced models. "},{"start":88.93200000000002,"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":97.849,"text":"And Geely has money to invest. "},{"start":99.992,"text":"On analyst forecasts, the group should have free cash flow in excess of $1bn annually through 2023. "}],[{"start":107.51,"text":"Moreover, the Chinese group should have a home team advantage. "},{"start":111.31400000000001,"text":"Local electric car makers have long been favoured by China’s government. "},{"start":115.144,"text":"Beijing’s electric car subsidies have been extended to 2022. "}],[{"start":119.89,"text":"Shares of Geely have more than doubled over 12 months, reflecting expectations of further growth potential in the local markets. "},{"start":126.832,"text":"Zeekr may not topple Tesla from its place in the sales ranking. "},{"start":130.412,"text":"But a premium electric brand should at least boost Geely’s margins — as Lexus has for Toyota. "}],[{"start":136.43,"text":"Our popular newsletter for premium subscribers Best of Lex is published twice-weekly. "},{"start":141.347,"text":"Please sign up here. "}],[{"start":142.70000000000002,"text":""}]],"url":"https://creatives.ftacademy.cn/album/36147-1616506615.mp3"}