The logo of the Chinese car manufacturer Geely Automobile.
Zhang Peng | Getty Images
Guangzhou, China-Chinese car manufacturer Geely Holdings After its founder established a new company, he is getting involved in the smartphone business.
Geely said that Hubei Xingji Times Technology Co., Ltd., founded by Li Zhiwei, and Wuhan Economic and Technological Development Zone signed a strategic cooperation agreement for the production of mobile phones.
Geely stated in a press release that the company’s headquarters will be located in Wuhan and will focus on “integrating global technologies and resources to develop high-end smart devices including smartphones for consumers around the world”.
Geely’s foray into smartphones highlights the automaker’s motivation to enter new areas, which have seen the company’s involvement in satellites and flying cars.
According to research firm Canalys, China’s smartphone shipments in the second quarter of this year fell by 17% year-on-year. IDC data shows that global shipments have increased by more than 13%.
As Huawei’s market share drops due to U.S. sanctions, Chinese competitors such as Xiaomi, Oppo and Vivo hope to snap up customers.
Read more about China from CNBC Pro
The company did not provide detailed information about the mobile phone brand or when it was launched, but said that smartphones complement its automotive business.
Li said that mobile phones and devices can “serve as a way to a wider range of automotive applications.”
“Smart car cockpit technology is closely linked to smartphone software technology. The main trend in the future is to create a cross-border user ecosystem to provide users with a more convenient, smarter, and seamlessly connected multi-screen experience.” He added.