Every Wednesday and Friday, TechNode’s Briefing newsletter delivers a roundup of the most important news in China tech, straight to your inbox.
Chinese automaker Changan has issued a formal complaint against Geely for allegedly copying its latest EV car design, sending the Hangzhou-based car company a cease-and-desist letter which surfaced online on Monday, amid fierce competition in the country’s dense electric vehicle market.
Why it matters: The dispute highlights an intensification of the battle for market share among automakers in China, where the country’s EV growth momentum has slowed amid post-Covid zero economic swings.
The move could have a negative impact on the image of Geely’s new Galaxy lineup, which Volvo’s parent company has positioned as a high-volume brand for the mainstream to premium segment.
Details: In a letter issued on Feb. 27 by Baijus Law Firm, Changan accuses Geely of taking multiple design features from its vehicles for the latter’s prototype Galaxy Light EV.
Changan requested that its competitor stop violating its intellectual property rights and said it would consider legal options. On Wednesday, a company representative confirmed to TechNode that it had sent the letter.
The legal effort prompted an angry response from Geely. In a statement published Tuesday on Chinese Twitter-like microblogging site Weibo, the company said it would fight “misleading” information and pursue legal action against “false” accusations.
“Geely Auto Group takes intellectual property rights seriously and adheres to all relevant laws and regulations. We are confident that […] our team has not infringed on the intellectual property rights of any other company,” the automaker said in the statement.
Context: The legal spat came shortly after Geely unveiled the Galaxy Light sedan, a futuristic car with traditional Chinese aesthetic elements inspired by Hangzhou’s scenic West Lake area.
The Zhejiang-based automaker also showcased the L7, a plug-in hybrid crossover and the first production car in the Galaxy family, while announcing plans to expand its product portfolio to seven models in the next two years.
A manufacturing partner to Ford, Chongqing-headquartered Changan sold 271,240 electric cars under its stand-alone brands last year, marking a 150% growth from a year previously. To compare, sales of Geely’s electrified vehicles tripled to 328,727 units in 2022.
READ MORE: Local Chinese authorities unveil stimulus measures to spur EV sales
With a small team, TechNode provides timely news and thoughtfully researched articles for worldwide readers interested in learning more about the Chinese tech industry.
Your contribution is appreciated.
