( CNN ) -- The London Taxi Company has been ferrying the city 's passengers around for more than 60 years , ensuring its brand is recognized the world over . But walk through London 's streets today and you will see this iconic company , which has some of the globe 's most knowledgeable cabbies , no longer has a monopoly on London 's market . According to David Bailey , of the Aston Business School , the competition `` was opened up some time ago . '' Read more : Skyscanner brings a pinch of Silicon Valley to Scotland . The London Taxi Company , Bailey said , has been `` losing market share to the likes of Mercedes , who can take a van and produce it in very big numbers , and get their cost down and convert some of them into taxis . `` [ It 's ] much more difficult , then , for the London Taxi firm to compete with them ... ..they are producing in small volumes at higher cost . '' Read more : Scottish pride restored by world porridge champion . And this is where many of the taxi company 's problems lie . I had the opportunity to film at their Coventry factory last year and see the work they do first-hand . But a week after my visit , the company , then owned by Manganese Bronze , filed for administration after failing to have turned a profit since 2007 . To add their troubles , the company also discovered a safety defect in its new TX4 model , leading to the recall of 400 cars and a stop in further taxi sales . Read more : How saffron could save Greek farmers . But a year is a long time in business and today , The London Taxi Company is back from the brink , after being bought by Chinese automotive giant Geely for Â£11 million . While I am glad that production has resumed and their very skilled workers have their jobs back , I am apprehensive about the future of their UK factory . Read more : Christine Lagarde warns against 'complacent ' Europe . The vice president of The London Taxi Company , Peter Johansen , told me their factory will produce 1,400 vehicles for the UK market -- that 's 12 vehicles a day . It 's hardly going to swell their coffers . To add to that , workers here wo n't exactly be putting their creativity to good use . As I found out , these vehicles will simply be assembled here with pieces that come from Shanghai . Read more : Is Greece finally on the mend after economic crisis ? The set-up begs the question : What 's the real reason for keeping a production base in the UK ? According to Bailey , `` this is about Geely buying The London Taxi Company to act as a distributor of Geely cars , which will be arriving fairly soon to the UK and European markets . So , it 's very much a case of the Chinese are coming , in quite a big way . '' So for now , Geely is testing the ground in Europe ; preparing it for their arrival . Johansen tells me the company is gaining ground globally . `` They will move into Western Europe and other places eventually , but their focus is on the markets closer to home in China where they are made , '' he said . Read more : Euro pioneer : Europe would have suffered without single currency . `` I think when they have established those markets , and become established in those markets , I think you will see then start to manufacture outside China , '' he said . In the meantime , they face a challenge : How to improve their taxis ? And how do they compete with the cheaper and lighter Eco City Vehicle which is customized by Mercedes-Benz ? Japan 's Nissan is also reported to be launching a taxi for the London market . But Johansen welcomes the challenge . `` Competition is always healthy , '' he said . `` You have to be able to compete in your product and we produce the elite taxi that everybody will like to have , so I 'm not frightened by any competition . '' That may work while there is cash available . But to secure a less bumpy future , they need to innovate . Being an icon may no longer be enough .
The London Taxi Company has been ferrying passengers around the city for 60 years . But the famous company no longer has a monopoly on the streets . It is facing competition from the likes of Mercedes and Nissan . The company must innovate to ensure it does n't struggle , as it has in the past .