Shares of Hong Kong-listed Geely Automobile rose 1.38 percent to 2.94 HK dollars (38 U.S. cents) Monday morning.
Dong Yang, Executive Vice President of the China Association of Automobile Manufacturers, said Geely's successful takeover of Volvo is "just the company's first step in expanding."
Keeping Volvo's high-end brand value and product quality will be a difficult task, Dong said, adding that raising Volvo's market share in China and adapting the European brand to China will not be easy, either.
"All of these things should be realized step by step through hard work," he added.
