China Automobile Industry, Technology (NEV, Driverless, etc): News & Images

[TaiShang]

Venucia revs up as independent firm
China Daily, February 8, 2017

A worker assembles a car at the Zhengzhou Nissan plant in Henan province. [Photo/China Daily]

Dongfeng Nissan's China-developed marque Venucia has evolved into an independent company, the first of its kind since the central government released a three-year guideline in 2009 to encourage joint ventures to develop their own brands.

Dongfeng Motor Co announced the establishment of Dongfeng Venucia Vehicle Co on Tuesday, saying that its independence would "enhance its brand recognition and boost its development".

The move makes it the seventh subsidiary of Dongfeng Motor, a 50:50 joint venture between Dongfeng Motor Corp and Nissan Motor Corp. Others include Dongfeng Nissan, Dongfeng Infiniti and Zhengzhou Nissan.

Zhou Xianpeng, vice-president of Dongfeng Motor, has been appointed to head the new company, which was registered on Jan 20 in Guangzhou, according to the city's industry and commerce administration.

Dongfeng Venucia has also established its own sales company in Guangzhou, which was approved on Jan 18 with registered capital of 100 million yuan ($14.58 million).

Jun Seki, president of Dongfeng Motor Co Ltd, said the new company will help facilitate the balanced development of imported and local marques.

Venucia was unveiled in late 2010 as a China-only marque, starting with models built on some of Nissan's previous-generation car platforms.

It has gradually developed its own features, with a design and modeling center established in Guangzhou last June.

Its efforts have distinguished Venucia as one of the few locally developed marques launched around 2010 that has been performing well.

Venucia has rolled out eight models since its establishment and sold 114,000 cars in 2016, bringing its cumulative sales to 480,000 vehicles.

Dongfeng Venucia said it will invest no less than 2 billion yuan in product development within five years and launch at least one model a year to build a lineup composed of SUVs, sedans, MPVs and new energy vehicles.

News portal Netease quoted a Dongfeng Nissan executive as saying that it would offer technological assistance to the new company.

John Zeng, managing director of LMC Automotive Consulting Shanghai, said an independent status is favorable for such marques' development in the long term because they were usually positioned to be subordinate to multinationals' original ones.

"The move means Venucia can now shake off the limitations it suffered in terms of product planning, and the Chinese side will have at least an equal say in the brand's development," Zeng said.

"It may take time to see whether it can get established. But if it succeeds, it will signal a new direction for cooperation between Chinese and overseas companies," he said.

 

[TaiShang]

China leads world in new-energy vehicle development
By Zhang Huan (People's Daily Online) 16:01, February 10, 2017

According to the China Association of Automobile Manufacturers (CAAM) on Feb. 9, China maintained its position as the world’s largest new-energy vehicle market in 2016, China News reported.

China’s sales of new-energy vehicles amounted to more than 500,000 in 2016, jumping 50 percent from the previous year and accounting for 1.8 percent of all vehicle sales in China, as well as more than 40 percent of global new-energy vehicle sales, according to CAAM.

At present, China is No. 1 in the world when it comes to supply capacity of new-energy vehicles, as the country's main new-energy vehicle enterprises have developed a fairly complete capacity for development, verification, manufacturing, marketing and industrial chains. China is also at the top in electric vehicle battery production, occupying 50 percent of the world market.

Meanwhile, China’s policies, standards and regulations on new-energy vehicles are becoming increasingly complete, as efforts by local governments to promote the consumption and utilization of the vehicles are stepped up. In addition, China set its own new-energy vehicle standards during development and practice, rather than directly adopting international standards.

As for the aggregate performance of China’s new-energy vehicle market in 2017, CAAM offered a forecast that: the market will continue growing to reach a sales volume of 800,000; consumption of passenger vehicles will further rise to account for 70 percent of the total; consumption of long-distance blade electric vehicles will grow; sales of charging facilities will see rapid growth; and cost will lower as production scale increases.

 

[GS Zhou]

SAIC (Shanghai Automotive Industry Corp.) recently launched a new sedan model called Roewe i6. The most interesting thing of the model is, with SAIC's continual investment on car aerodynamics, the Drag Coefficient (Cd) of Roewe i6 reaches 0.25Cd, an excellent result for a mass-market model!

Drag Coefficient (Cd) is a common measure in automotive design as it pertains to aerodynamics. Smaller Cd leads to smaller air resistance forces, i.e. fewer energy consumed.

Only few mass-market models could achieve 0.25Cd or smaller, e.g. Mercedes CLA (0.22Cd), BMW 5-series (0.22Cd), Mercedes E-class (0.23Cd), Audi A4 (0.23Cd). Tesla Model S reaches 0.24Cd, but this is an electric car model, which has no design restrictions in terms of air-intake, a key bottleneck area for better Cd performance.

The car media Autohome did a real wind-tunnel test to see if Roewe i6 could reach the claimed 0.25Cd. The answer is yes, its Cd fluctuates between 0.2497 to 0.2517.

Some pictures of Roewe i6. A beautiful car!

 

[TaiShang]

Haval released its 2020 strategy on February 19th, with new models and technologies involved
By Biwen Wang From gasgoo.com| Feb 15 2017

GWM has made middle- and long-term plan for its future brand developments. Official news comes out that GWM will hold a ceremony in Baoding on February 19th, reviewing Haval's history and launching its 2020 development strategy, with information on new models and technologies involved.

In December, 2016, Haval H6 won champion of domestic passenger vehicle market with monthly sales of 80,500 units and achieved a year-to-year growth of 89.16%. The average monthly sales also achieved 48,300 units. In the meantime, middle-size SUV Haval H7 sold 10,800 units and small-size SUV Haval H2 sold 35,300 units in December.

Total annual sales for GWM reached 1.07m units in 2016, increasing 26.01% with 2015. It has been the 14th year for Haval brand to obtain domestic SUV sales champion. Haval’s sales face continuously growth since its independence in 2016, along with the rising profits. GWM’s profit rate reached 11.3% in 2016, compared with 10% of Mercedes-Benz.

According to plan, Haval will launch more models in 2017. Sales champion H6 will meet its new generation model; H8 will also launch a facelift model. H9 will increase a new model equipped with 3.0T engines. WEY model will also launch its W01 and W02 into market.

Analyses believe that the fast launching speed and intensive new products, along with understanding customers’ demands, make GWM’s success in SUV market.

***

News from HK media: Geely is expected to obtain Proton’s holding shares
By Biwen Wang From gasgoo.com| Feb 15 2017

HK media reported that Geely Group has surpassed Renault and Peugeot Citroen in the competition for purchasing Proton Auto. It's said that Geely is expected to obtain 51% holding shares of Proton, the largest auto manufacturer in Malaysia. The successfully achieved transaction will provide access for Geely to obtain Proton’s production line in Malaysia. As a consequence, vehicles produced by the line will enter 62,300 million population ASEAN market duty-free.

But there is a question that why Malaysia government would like to allow a foreign company to obtain Proton's holding shares. In fact, Proton was established in 1983 in response to Malaysia’s national auto development plan. In 1986, Proton's products with displacement less than 1.6L occupied 64% of domestic market, which were still in short supply. However, Proton met huge losses in trying to export the product into American market. Afterwards, Proton faced a more difficult situation when Malaysia’s second largest domestic auto company introduced advanced engineering technologies from Toyota and ended Proton’s monopoly in domestic market.

Intensified domestic and foreign competition made foreign dealerships give up Proton. In 1996, Proton purchased Lotus brand and entered into high-end racing area, lifting its own brand image. But the Asia financial crisis gave another shock to Proton. In the first five years of 21th century, sales of Proton dived and met another decrease of 25% in 2015. The government approved the $2,840m soft loan with one condition of finding a foreign partner. The foreign partner will get high domestic market shares and have access to enter into Southeast Asian market. Besides, it will get a world-known racing brand and technologies from Lotus.

@powastick

 

[TaiShang]

China to see "handsome growth" in 2017 NEV sales
Source: Xinhua Published: 2017/2/18

Sales of new energy vehicles (NEVs) in China will continue to see "handsome growth" this year despite a plunge in January sales, an official said Friday.

"Car makers are increasing research and development with more investment, and an array of new products will hit the market this year," Miao Wei, minister of industry and information technology, said at a press conference.

China sold 507,000 NEVs last year, the most in the world for a second year and up 53 percent from 2015, according to the China Association of Automobile Manufacturers.

However, sales plunged 74.4 percent in January, as the government tightened subsidy policies after discovering that some companies were cheating on subsidies.

Earlier this month, the ministry suspended the rights of seven NEV manufacturers to recommend models for subsidies, punishing them for cheating.

The government plans to cut subsidies on NEVs by 20 percent in 2017-2018 from the 2016 level before phasing them out by 2020.

"Development of China's NEV market is keeping up with global development," according to Miao, adding that subsidies granted in the initial stage have been invaluable.

The ministry will continue to adjust subsidy policies with the finance ministry, raise the threshold for corporate and product entry, and enhance online supervision over NEV sales and use, Miao said.

**
China's automakers FAW, Dongfeng to co-build innovation center
Source:Xinhua Published: 2017/2/18

Two major Chinese automakers, FAW Group Corp. and Dongfeng Motor, announced Friday plans for a joint innovation center.

According to the deal signed Friday, the center will explore smart connectivity, fuel cells and lightweight technologies. It will also offer training and unify suppliers.

FAW chairman Xu Ping said the cooperation will strengthen respective competitiveness of the two firms.

FAW, based in the northeastern city of Changchun, has joint ventures with Germany's Volkswagen AG and Japan's Toyota Motor, while Dongfeng, located in the central city of Wuhan, has joint ventures with France's PSA Peugeot-Citroen and Japan's Honda Motor.

In 2016, vehicle sales of Dongfeng and FAW in China ranked second and third among all automakers.

 

[TaiShang]

Automakers post massive profit growth
By Hao Yan | China Daily | Updated: 2017-02-20

Workers assemble car bodies at a SAIC Motor plant in Liuzhou, Guangxi Zhuang autonomous region. [Photo/Xinhua]

Automakers post massive profit growth Sales volumes, successful strategies boost Chinese car manufacturers' margins, Hao Yan reports.

The majority of China's publicly listed carmakers witnessed a leap in their profit margins last year, boosted by large sales volumes and higher pricing strategies linked to fresh lineups.

Major automakers that have listed on the Chinese A-share market and Hong Kong Stock Exchange announced their preliminary results in recent weeks. Among them, State-owned SAIC Motor netted the largest profits, while Geely Automobile's more than doubled.

The top three most profitable companies, which bagged over 10 billion yuan ($1.46 billion), are SAIC Motor, State-owned China Chang'an Automobile Group's listed arm Chongqing Chang'an Automobile, and Great Wall Motor.

Industrial insiders saw the large sales volumes as the main engine driving this profitability, because the effects of economies of scale are significant in the car manufacturing industry.

"The backbone is the volume. A carmaker's assets remain stable day to day, and the research and development investment has already been paid. So the more products they sell, the more they earn," a senior automobile analyst at a securities firm, who requested not to be named, told China Daily.

SAIC Motor said its net profit jumped 7.5 percent year-on-year to 32 billion yuan, attributing its earnings growth to a sales volume expansion of 9.95 percent－to 6.5 million vehicles－in 2016.

The analyst said: "SAIC had a very large base last year, so a single-digit growth in net profit is significant. Smaller ones, including Geely and Great Wall, find it easier to achieve much higher growth rates."

The similar economy scales could also be found in Geely Automobile Holdings and Beijing Automotive Group Co's listed BAIC Motor Corp.

Geely Automobile is expecting the net profit more than double from the 2.26 billion yuan in 2015, which would be exceeding 4.5 billion yuan, according to the calculation.

BAIC Motor predicted above 90 percent surge in net profit thanks to the 35.6 percent sales growth in BAIC-branded vehicles, a 26.7 percent jump in the Mercedes-Benz brand, and a 7.45 percent expansion in Hyundai brand.

Deutsche Bank Group estimated BAIC Motor's net profit for 2016 would exceed 6.3 billion yuan, far beyond the bank's forecast for a 20 percent growth rate.

Serving as a negative example of the economy of scale theory, First Automotive Works Group Corp's listed arm FAW Car Co is the only major player announced a deficit in 2016.

The Jilin-based carmaker has nearly 18 percent lower sales than the 193,500 units volume in 2015.

Besides the significant influence on profit brought by sales volume, both of Geely and BAIC Motor also attributed the profit achievements in the refreshed product line-ups.

The analyst echoed that product portfolios play a leading role in attracting Chinese customers to make the purchase decision.

He said the new products, especially the popular sport utility vehicles, are widely accepted for the latest technologies, trendy silhouette and designs. On the other hand, these newly launched models pushed up the retail prices that resulting in higher profit margins.

Geely also leveraged a cost advantage through its platform sharing strategies. It divides the dealerships into A and B streams, and supplies them with slightly different products.

For example, Geely Emgrand Boyue and Vision X6 are sister products with the exquisite Emgrand Boyue positioned a bit higher than Vision X6.

The two models share R&D investment, but are provided to the two streams of the dealers for larger market shares, according to an automobile analysts familiar with Geely.

The pricing strategies and utilization of productivity are among the many factors influencing a car manufacturer's profitability, according to securities firms' analysts on auto industry.

Many automakers have expanded SUV line-ups for affluent profit, as the vehicles are usually developed from sedan platforms that incurring no magnificent investments, but larger numbers on the price stickers of the SUVs are accepted by the buyers. Dongfeng Automobile Co, the listed arm of the State-owned giant Dongfeng Motor Corp, did not announce its preliminary result.

 

[TaiShang]

China's top 10 best-selling SUVs of 2016
By Hao Yan | chinadaily.com.cn | 2017-02-21

No 1, Great Wall Motor's Haval H6
Sales: 580,683


Great Wall Motor's one-millionth Haval H6 is displayed at a ceremony in the carmaker's Tianjin plant on Nov 12, 2015. [Photo/VCG]

No 2, GAC Motor's Trumpchi GS4

Sales: 326,906


GAC reveals the GS4 SUV to the media at the 2015 North American International Auto Show on Jan 12, 2015 in Detroit, Michigan, US. [Photo/VCG]

No 3, SAIC-GM-Wuling Automobile's Baojun 560

Sales: 321,555

​

A Baojun 560 SUV is displayed at a ceremony in Liuzhou, Guangxi province, on Aug 21, 2015. [Photo/Xinhua]

No 6, Changan Automobile's Changan CS75

Sales: 209,353

​

Chongqing Changan Automobile's CS75 SUV models are displayed during the Auto China 2016 motor show in Beijing, April 26, 2016. [Photo/Agencies]

No 7, JAC Motors' Refine S3

Sales: 197,947


Visitors look at a Refine S3 crossover at a motor show in Nanjing, capital of Jiangsu province, Aug 30, 2014. [Photo/VCG]

No 8, Great Wall Motor's Haval H2

Sales: 196,926

​

A staff member checks a Haval H2 from Great Wall Motors during the Auto China 2016 motor show in Beijing, May 4, 2016. [Photo/Agencies]

Full list: http://www.chinadaily.com.cn/business/motoring/2017-02/21/content_28276707_2.htm

 

[Jlaw]

China's top 10 best-selling SUVs of 2016
By Hao Yan | chinadaily.com.cn | 2017-02-21

No 1, Great Wall Motor's Haval H6
Sales: 580,683


Great Wall Motor's one-millionth Haval H6 is displayed at a ceremony in the carmaker's Tianjin plant on Nov 12, 2015. [Photo/VCG]

No 2, GAC Motor's Trumpchi GS4

Sales: 326,906


GAC reveals the GS4 SUV to the media at the 2015 North American International Auto Show on Jan 12, 2015 in Detroit, Michigan, US. [Photo/VCG]

No 3, SAIC-GM-Wuling Automobile's Baojun 560

Sales: 321,555

​

A Baojun 560 SUV is displayed at a ceremony in Liuzhou, Guangxi province, on Aug 21, 2015. [Photo/Xinhua]

No 6, Changan Automobile's Changan CS75

Sales: 209,353

​

Chongqing Changan Automobile's CS75 SUV models are displayed during the Auto China 2016 motor show in Beijing, April 26, 2016. [Photo/Agencies]

No 7, JAC Motors' Refine S3

Sales: 197,947


Visitors look at a Refine S3 crossover at a motor show in Nanjing, capital of Jiangsu province, Aug 30, 2014. [Photo/VCG]

No 8, Great Wall Motor's Haval H2

Sales: 196,926

​

A staff member checks a Haval H2 from Great Wall Motors during the Auto China 2016 motor show in Beijing, May 4, 2016. [Photo/Agencies]

Full list: http://www.chinadaily.com.cn/business/motoring/2017-02/21/content_28276707_2.htm

Haval also sold in Australia.

 

[TaiShang]

Haval also sold in Australia.

Really?

China automakers still have very little international exposure in the markets that really matter, such as Northeast Asian and European.

I guess China's entry segment will be new electric vehicles with advanced battery and IoT systems because in traditional segments European, Japanese and US domination is immense.

Currently, what I care most about is home market. Because, domination at home market will give the required cash flow for automakers to innovate in competitive foreign markets.

 

[Jlaw]

Really?

China automakers still have very little international exposure in the markets that really matter, such as Northeast Asian and European.

I guess China's entry segment will be new electric vehicles with advanced battery and IoT systems because in traditional segments European, Japanese and US domination is immense.

Currently, what I care most about is home market. Because, domination at home market will give the required cash flow for automakers to innovate in competitive foreign markets.

Yes it is. My only gripe is that they need to understand the Aussie market more. Aussies prefer diesel for SUV, Haval is petrol. Aussie, and north American markets are trending towards cars with higher horse power. A 2 litre turbocharged engine is not highly recommended.

 

[TaiShang]

Good news for BYD? @cnleio

**

Beijing to replace all taxis with new energy vehicles
CRI, February 24, 2017

Beijing is aiming to gradually replace its petrol-powered taxis with greener new energy vehicles to help reduce air pollution starting from this year.

A new engery car is on the road in Beijing. [File photo/ecns.cn]

The plan is contained in a discussion document on preventing and solving air pollution problems in the Beijing-Tianjin-Hebei Region and neighboring provinces, which was issued on February 14, according to National Business Daily.

All petrol-and diesel-powered taxis being taken out of service would need to be replaced by electric or liquid petroleum gas (LPG) powered cars. Any vehicles that taxi companies plan to buy should be electric or other types of new energy cars.

Statistics show that Beijing currently has about 71,000 taxis in total, out of which 67,000 are conventionally powered, the National Business Daily reports.

It is estimated the market size would reach 9 billion yuan (about 1,309 million USD) if all the taxis in Beijing were replaced by electric or natural-gas-powered vehicles, according to National Business Daily.

Experts say once the plans in the discussion document implemented, it will not only contribute to the environment, but stimulate China's new-energy vehicle industry.

However, it is not easy for green powered taxis to compete with traditionally powered ones at present, due to concerns over longer time needed on charging and the limited mileage of electric vehicles, says Liu Tao from the Beijing Taxi Cum Automotive Leasing Association

Purchasing a traditionally powered vehicle would generally cost between 60,000 yuan (about 8,725 USD) to 70,000 yuan (about 10,179 USD), but an electric vehicle would cost about 140,000 yuan (about 20,359 USD), Liu said.

But if the number of new energy vehicles is increased, that cost will go down, say Li Liangjin, CEO of CAOCAO, a Chinese travel service platform.

 

[cnleio]

Good news for BYD? @cnleio

**

Beijing to replace all taxis with new energy vehicles
CRI, February 24, 2017

Beijing is aiming to gradually replace its petrol-powered taxis with greener new energy vehicles to help reduce air pollution starting from this year.

A new engery car is on the road in Beijing. [File photo/ecns.cn]

The plan is contained in a discussion document on preventing and solving air pollution problems in the Beijing-Tianjin-Hebei Region and neighboring provinces, which was issued on February 14, according to National Business Daily.

All petrol-and diesel-powered taxis being taken out of service would need to be replaced by electric or liquid petroleum gas (LPG) powered cars. Any vehicles that taxi companies plan to buy should be electric or other types of new energy cars.

Statistics show that Beijing currently has about 71,000 taxis in total, out of which 67,000 are conventionally powered, the National Business Daily reports.

It is estimated the market size would reach 9 billion yuan (about 1,309 million USD) if all the taxis in Beijing were replaced by electric or natural-gas-powered vehicles, according to National Business Daily.

Experts say once the plans in the discussion document implemented, it will not only contribute to the environment, but stimulate China's new-energy vehicle industry.

However, it is not easy for green powered taxis to compete with traditionally powered ones at present, due to concerns over longer time needed on charging and the limited mileage of electric vehicles, says Liu Tao from the Beijing Taxi Cum Automotive Leasing Association

Purchasing a traditionally powered vehicle would generally cost between 60,000 yuan (about 8,725 USD) to 70,000 yuan (about 10,179 USD), but an electric vehicle would cost about 140,000 yuan (about 20,359 USD), Liu said.

But if the number of new energy vehicles is increased, that cost will go down, say Li Liangjin, CEO of CAOCAO, a Chinese travel service platform.

BeiJing city, has their own BeiJing Auto the company produce ShenBao-EV(绅宝EV) ... if no accident, those new energy taxi should come from local BeiJing Auto.

 

[TaiShang]

Storied Carmaker Lays Tracks for ‘Red Flag’ Revival
By An Limin and Yang Ge
Caixin

A Hongqi car arrives at the Hangzhou International Expo Center on Sept. 4. Hongqi once the pride of China’s automobile industry, is attempting a comeback, putting in requests in 35 cities for bidders interested in opening dealerships and after-sales service centers. Photo: IC

(Beijing) — Legendary Chinese automaker Hongqi, which has chauffeured the likes of Richard Nixon and Mao Zedong over the years, is showing the world it isn’t running on empty just yet.

Despite selling just 5,000 cars last year, the brand, whose name means “Red Flag,” has announced plans to build up a national sales and service network in an attempt to recapture some of its former glory and extend its limited appeal to the broader masses.

Hongqi is starting with relatively modest ambitions, putting out a request in 35 cities for bidders interested in opening dealerships and after-sales service centers, known in the industry as 4S. The company currently operates a limited series of showrooms, known to industry insiders as hongguan, or “red shops,” that piggybacked on facilities owned by its much larger parent, FAW Car Co. Ltd.

“This is only the first phase,” a company insider told Caixin. “Going forward, we have more plans to develop the network.”

A Hongqi car is seen on display in Jinan city, Shandong province on Sept. 10, 2015. Photo: IC

Hongqi’s big hopes are flowing from its newest model, an updated version of its H7, which will hit China’s streets in the second half of this year. Further down the road, the company plans to roll out an SUV in 2018 to cater to a burgeoning class of Chinese weekend road warriors.

The revamped H7 has gotten decidedly mixed reviews, with some deriding its retro look and its overt focus on back-seat passengers. That focus jibes with the car’s history, as the brand was initially used to chauffeur around Chinese and foreign dignitaries in the quarter-century after its founding in 1958.

The brand is well-known to average Chinese for its history as China’s oldest domestic brand, but doesn’t carry much cache to a newer generation of car buyers, who have flocked to German luxury brands like Audi, BMW and Mercedes-Benz. Hongqi’s meager 5,000 in annual sales last year compares with more than 50,000 vehicles sold by BMW and Mercedes-Benz each in January alone, and more than 35,000 for Audi.

“In the past, they wanted to make it a high-end brand, but this brand had a hard time. Consumers don’t really understand what it represents,” said Wang Cun, vice director of the China Automobile Dealers Association. “This brand, if they want to develop, they need to identify who their audience is.”

Wang’s reference alludes to Hongqi’s own identity crisis over the years. After starting out as a maker of cars that functioned more like limousines than ordinary passenger cars for its first quarter-century, the company stopped production in the 1980s. Several attempts were made at reviving the brand before FAW started rolling out its own models about a decade ago.

Wang said Hongqi initially tried to come back by targeting the same status-conscious high government officials that propelled it to its original fame. But that already limited audience has grown slimmer still over the last three years under an austerity campaign led by President Xi Jinping that aimed at cutting conspicuous consumption among government officials.

The latest plan to build its own independent sales and service network appears to show the company wants to go mainstream and find a broader audience, Wang said.

“If you are just going after government officials, you don’t need a very big sales network,” he said. “But if you want to develop a market among private consumers, you have to start thinking about developing a sales network. Whether or not you succeed will depend on the product.”

Contact reporter Yang Ge (geyang@caixin.com)

 

[TaiShang]

China-Zimbabwe auto JV unveils decent pickup truck
Xinhua, March 28, 2017

A joint venture of Chinese and Zimbabwean auto companies on Monday launched a top-of-the-range pickup truck, the Grand Tiger, in Zimbabwe.

The launch followed the joint venture forged between Beijing Automotive Group Co. Ltd (BAIC Group) and two Zimbabwean companies to form Beiqi Zimbabwe (Pvt) Ltd.

The local partners are the government owned Willowvale Mazda Motor Industries and automotive and spare parts dealer Astol Motors, who jointly own 49 percent of shares in the joint venture.

Beiqi Zimbabwe will be involved in the importation of whole vehicles, knocked down kits, distribution, services and finance management.

The joint venture is projected to create 5,000 jobs directly and indirectly and generate 1.3 million U.S. dollars in Value Added Tax and other tax revenues in 2017, while future exports will also generate the much needed foreign currency.

Chinese Ambassador to Zimbabwe Huang Ping said that Chinese companies had cast a vote of confidence in Zimbabwe's development, and the latest venture was a culmination of agreements signed during President Xi Jinping's visit to Zimbabwe in 2015.

"I believe that the cooperation with BAIC Group will inject new and strength into Willowvale Motor Industries plant and energy bring it into new successes," he said.

The Grand Tiger comes as a 4x2 or 4x4 single or double cab and is equipped with a Toyota technology 2.5l common rail turbo-charge diesel engine which saves fuel through an intelligent electronic control fuel injection system that gives it 100 km per 6 liters.

With a minimum ground clearance of 210 mm coupled with military chassis technology, the truck is suitable for Zimbabwe's rugged terrain and is an addition to various other Chinese models locally available, such as GWM, Chery and Jinbei.

For safety, the truck is equipped with dual airbags, Anti-skid Braking and Electronic Brake-force Distribution systems.

The luxury model is equipped with a 7-inch touch screen, integrated mobile phone interconnection, multimedia player, tire pressure monitoring, navigation and reversing visual images, among other features.

The double cab goes for about between 20,000 U.S. dollars and 32,000 U.S. dollars and compares with common brands in the country such as the Toyota Hilux while goes for more than 37,000 U.S. dollars for a single cab and a minimum 45,000 U.S. dollars for the double cab.

An Isuzu costs a minimum 49,000 U.S. dollars, while Nissan sells for up to 52,000 U.S. dollars.

The passenger car and SUV will be launched in the mid and late 2017 respectively under a three-year plan projected to see sales going up from an initial 500 units to 1,500 per year.

It is also envisaged that the company will start exporting to other southern African countries in 2018.

Guest of honor and Minister of Industry and Commerce Mike Bimha said the government would continue to play its facilitatory role by improving the business climate and addressing major constraints affecting the business community in general and the car assembly industry in particular.

He said the government would also want to see Beiqi Zimbabwe moving from semi-knocked down production to completely knocked down production and possibly venture into local production of vehicle components.

"This will fulfill the objectives of the African Union's Agenda 2063, the SADC Industrialization Agenda and Roadmap as well as government's blueprint, the ZimAsset, which places emphasis on the development of value chains," he said.

Beiqi Zimbabwe general manager Wang Hefeng promised technology transfer to Zimbabwe and good value for money.

"We are going to ensure that there are enough spare parts in the country for the vehicles that we are going to sell to you," he said.

He added that the Grand Tiger had been tested across all terrains in the country and had done well.

Founded in 1958, BAIC Group is one of the top four largest automobile enterprises in China and the largest state-owned industrial enterprise group in Beijing with 130,000 employees.

The company has established KD assembly plants and parts bases in over 20 countries and has been listed four years running among Fortune Global Top 500 companies where it ranked 160th in 2016.

Among its products are BAIC Motor, Foton, BAIC Yinxiang, Beijing Hyundai, Beijing Benz, Changhe Suzuki, BFDA, BeiqiPenglong and BAIC International.

In 2016, it sold 2.8 million vehicles and generated an operating revenue of 70 billion U.S. dollars.

 

[TaiShang]

China's JAC Motors unveils first vehicles assembled in Mexico
Source: Xinhua 2017-03-30


MEXICO CITY, March 30 (Xinhua) -- JAC Motors of China has presented the first two SUVs manufactured in Mexico.

It happened after JAC signed an alliance with Giant Motors Latin America and the Inbursa financial group, owned by Mexican magnate Carlos Slim, which represents an investment of around 4.4 billion pesos (236 million U.S. dollars).

"It is significant for us to see our company enter the North America market, where Mexico plays an important and strategic role. We want to use this to gradually update our products and position the brand in a mature market with potential niche," David Zhang, deputy director-general of JAC International, told Xinhua on Tuesday.

The vehicles are being manufactured at a plant in Tepeapulco, in the central state of Hidalgo, which is expected to produce 10,000 vehicles over five years.

Zhang said that JAC products, especially light trucks, are already accepted in Mexico.

"We want to move forward step by step. First, we want to meet the demand of the Mexican market. There is a big market here and our SUV products are liked by young Mexican people, who will be our main consumers," he said. "We will then use this production base to extend our business to nearby countries, including all of Latin America and the Caribbean."

Jose Luis Romo Cruz, secretary of economic development for the state of Hidalgo, said this investment would put Hidalgo back on the international automotive map.

He said that China is a very important market for Hidalgo, which is seeking to bring Chinese investment toward the automotive, renewable energy, agricultural and aerospace sectors.

"The challenge facing our state is the same (as) all of Mexico is facing. We are at a stage where we are seeking the best way to diversify our markets and not rely only on the U.S.," emphasized the official. "We are more than ready to receive Chinese investment."