Focus on Linhai's “Three Connections” -Geely Automobile KD Parts
Focus on Linhai's “Three Connections” Initiative: Taizhou Comprehensive Bonded Zone Successfully Exports First Consignment of Geely Automobile KD Parts Under Bonded Consolidation!
On the afternoon of 23rd September, 26 container lorries laden with Geely Automobile's KD components departed from the company's Linhai base near Taizhou Comprehensive Bonded Zone. After swift clearance through the zone's automated border control system, the cargo will be loaded at Toumen Port for shipment to Indonesia. There, the components will be assembled into complete vehicles for local market distribution. This marks the successful implementation of the Taizhou Comprehensive Bonded Zone's inaugural bonded consolidation operation for automotive KD components.
KD kits represent a significant export model for the automotive industry, whereby manufacturers ship semi-finished components overseas for final assembly. This approach substantially reduces overall logistics costs while enabling rapid adaptation to local market demands. As Taizhou's leading automotive enterprise, Geely Automobile has experienced a surge in global orders. The efficiency and cost control offered by the KD model have become pivotal to its successful establishment in overseas markets.
It is reported that Geely Automobile's Linhai base has established a dual-line production layout for SUVs and saloon cars. The Geely Galaxy Starcraft 7 EM-i has successfully entered the Australian market and is set to launch in nearly 20 countries including Poland, Indonesia, Thailand and Mexico within this year, achieving multi-market expansion across Asia-Pacific, Europe, Latin America and Africa. ‘Exporting Geely's KD kits through Taizhou Comprehensive Bonded Zone has significantly enhanced our flexibility and competitiveness in fulfilling international orders,’ stated a representative from Zhejiang Jisu Logistics Co., Ltd. ‘By 2026, we anticipate exporting 6,000 vehicle kits, achieving annual trade exceeding RMB 1 billion and driving approximately 4,500 high-cube container exports.’
Since commencing operations, Taizhou Comprehensive Bonded Zone has continuously deepened policy research, precisely defined its development positioning, and expanded its distinctive ‘bonded + automotive’ sector. By leveraging synergies between ‘on-site and off-site’ industrial linkages and the combined advantages of bonded policies, it is dedicated to establishing a ‘1+2+N’ international automotive bonded processing and export base: centred on vehicle bonded processing, modification, and maintenance industries, it aims to create China's first batch of five-star used vehicle export bases and and a global distribution centre for automotive KD components. It innovates integrated services including customs supervision, comprehensive bonded zone vehicle management, and tri-port collaborative logistics. This accelerates the development of an industrial ecosystem encompassing bonded R&D manufacturing, modification and maintenance, bonded display, and consolidated export for automobiles and components, thereby establishing Taizhou Comprehensive Bonded Zone's distinctive automotive industrial chain.
Cai Rongjun, Deputy Section Chief of Business Section One at the Linhai Office of Taizhou Customs, stated: ‘Comprehensive bonded zones offer distinct policy advantages in areas such as export tax rebates for goods entering the zone, import bonded status, and the free movement of goods within the zone, significantly reducing transaction costs for enterprises. Moving forward, Customs will streamline entry and exit procedures to assist businesses in cutting costs and enhancing efficiency, attract local specialised industries in Taizhou to cluster within the zone for development, and foster economies of scale and competitive advantages.’
The successful launch of Geely's bonded consolidation and export operations for KD components exemplifies Taizhou Comprehensive Bonded Zone's enhanced “flagship enterprise leadership plus supporting synergy” approach. ‘The next step,’ stated a relevant official from the Taizhou Bay Economic Development Zone Management Committee, ‘will see the Taizhou Comprehensive Bonded Zone continue to focus on the implementation of key projects, the cultivation of industrial ecosystems, and institutional innovation. With the goal of establishing a full-chain service system encompassing “bonded R&D, modification and maintenance, and coordinated export of complete vehicles and components”, we will strive to propel the automotive industry within the Taizhou Comprehensive Bonded Zone to new heights.’