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

[grey boy 2]

China's annual output of automobiles expected to break 50 million
By Sun Wenyu (People's Daily Online) 17:40, May 16, 2017

China's annual output of automobiles is poised to break 50 million, said Dong Yang, executive vice chairman of China Association of Automobile Manufacturers (CAAM). Dong made the announcement at the 2017 China Auto Forum held in Shanghai on May 15.

About This Statistic
The graph shows passenger and commercial vehicle production in China until March 2017. In March 2017, 416,000 commercial vehicles had been produced in China.

https://www.statista.com/statistics/276938/automobile-production-in-china-by-month/

The growth of automobile sales in China in the next few years is expected to be maintained at 7 percent, the vice chairman said. Dong noted that 80 percent of annual production will be domestically oriented, while the rest will be shipped overseas. Previous statistics from the association show that domestic automobile production and sales in 2016 were 28.11 and 28.02 million respectively.

Though market demand has been reduced by purchase and traffic restrictions in some major cities, emerging second-tier cities will help to revitalize the energy of the automobile market, said Zhang Liqun, vice-inspector of the Department of Macroeconomic Research under the Development Research Center of the State Council.

China's domestic automobile brands have performed quite well in recent years, especially buses, trucks, small sport-utility vehicles and small multi-purpose vehicles. Sales of Chinese brands in 2016, which breached the 10-million barrier for the first time ever in that year, accounted for 43.19 percent of total vehicle sales in China. In addition, the country's electric vehicle output reached 500,000 in 2016, accounting for half the world's total production in that year.

The technology behind China's electric vehicles will be updated every two years. Dong believes that in the next five to 10 years, China's electric-vehicle manufacturing will catch up with that of those countries currently ranking at the top.
http://en.people.cn/n3/2017/0516/c90000-9216439.html

 

[TaiShang]

China's domestic automobile brands have performed quite well in recent years, especially buses, trucks, small sport-utility vehicles and small multi-purpose vehicles. Sales of Chinese brands in 2016, which breached the 10-million barrier for the first time ever in that year, accounted for 43.19 percent of total vehicle sales in China. In addition, the country's electric vehicle output reached 500,000 in 2016, accounting for half the world's total production in that year.

Let's hope the share of domestic producers will climb over 70% of the total in a decade. That would mean a huge domestic auto sector that provides millions of well-paying jobs.

 

[TaiShang]

Nation's GAC Motor starts recruiting in the United States
By PAUL WELITZKIN in New York | China Daily | Updated: 2017-05-19


China's GAC Motor is putting out the "Help Wanted" sign for engineers, marketing and management talent in the United States, and analysts in the auto industry say it may be a prelude to the company's entry into the US auto market.

GAC, a unit of Guangzhou Automobile Group Co Ltd, on Wednesday announced it was launching the recruitment program that would center on Boston, Detroit and Silicon Valley to attract skilled and creative people to join its international team.

Because GAC is seeking talent in Detroit, the heart of the North American auto industry, along with Boston and Silicon Valley, areas that have a high concentration of technology companies and people, it prompted speculation that GAC is building a team for a run in the US market.

At January's North American International Auto Show in Detroit, GAC made no secret of its desire to bring a model like the GS7 to market here, so that is definitely a part of the near－to medium-term agenda," David Zoia, editorial director of WardsAuto.com, wrote in an email.

The GS7 is a midsize sport utility vehicle that the company unveiled. GAC also said it would open a research and development center in Silicon Valley later this year.

Stephanie Brinley, auto analyst at IHS Markit, said GAC is looking to expand its business inside and outside of China, including the US.

"Recruiting from Detroit is likely to capture talent with particular expertise or interest in the auto industry, while Boston and Silicon Valley are more likely to be rich in technology and engineering talent. As GAC's entry in the US market is still some years off, employees hired from the US may well take a role in launching the product," she said in an email.

James Zhang, provost and senior vice-president of academic affairs at Kettering University in Flint, Michigan, formerly called the General Motors Institute, said technology is rapidly changing the global automotive industry and companies have a vital need to identify talent worldwide.

"If GAC is looking at being a technology-focused company in mobility and automotive, those regions allow them to access intriguing talent to build out their global talent portfolio. GAC's expansion into these markets will give the company access to some of America's most robust and technology-oriented markets in order to build their North American talent and capacity," Zhang said in an email.

Zoia said that it wasn't surprising that GAC is looking to raise its profile worldwide.

"Competing against the world's best automakers outside of China is the best way for GAC or other Chinese automakers to improve the quality and performance of the vehicles they make and gain better access to advanced technology from global suppliers," he said.

 

[Nan Yang]

Korean consumers keep buying Chinese cars
Chinese cars are popular in South Korea despite a near boycott of Korean brands in China

The Kenbo 600 SUV, the first Chinese passenger car on sale in South Korea, is enjoying major popularity, a stark contrast to Korean carmakers’ struggles in China due to the soured relationship between the two nations caused by a U.S. anti-missile shield.

After Korea decided to deploy a Terminal High Altitude Area Defense (THAAD) battery China came up with various economic retaliatory measures. Along the same line, Chinese consumers have virtually boycotted Korean automotive brands like Hyundai and Kia.

However, Korean motorists seemingly decided not to reciprocate as amply demonstrated by the rising sales of the Chinese SUV.

In order to meet the surging demands, China-Korea Motor, the local importer of the Chinese midsize SUV, plans to import 320 more cars from China by the end of June.

A China-Korea Motor official said the first batch of 120 cars was sold out two weeks after the Kenbo 600 SUV hit the Korean market in January. The Chinese carmaker’s local sales unit immediately imported more but demand outstripped supply.

China-Korea Motor decided to increase the volume of its monthly imports by almost 60 percent beginning in June.
China’s fourth-largest carmaker BAIC Motor produces the Kenbo 600 SUV, marketed as the S6 in China. It mounts a 1,498cc gasoline turbo engine that sports a maximum of 147 horsepower with a 21.9-kgf.m torque and combined fuel efficiency of 9.7 kilometers per liter.

The biggest appeal is its low price.

The Kenbo 600 comes in two models, with a starting price of 19.99 million won (US$16,700) for the Kenbo 600 Modern and 20.99 million won (US$17,720) for the Luxury model.
Initially, industry observers came up with a bleak outlook of the Kenbo 600’s performance in Korea, claiming Korean consumers are not convinced of the durability and safety of made-in-China cars.

There were also expectations Koreans would not buy Chinese vehicles at a time when Chinese motorists shun Hyundai and Kia cars.

But the SUV model silenced pessimists with its impressive sales.

“Demands for the Kenbo 600 are very high. We are struggling to import enough cars to meet the rising demand,” a China-Korea Motor official.

Encouraged by the early success of the Kenbo 600, China-Korea Motor also plans to introduce a compact SUV model by the end of this year.

The importer has yet to officially announce the model, but said its price range is expected to be six million won (US$5,316) cheaper than the SsangYong Motor Tivoli, the most popular mini SUV model in Korea.
“Public sentiment over the THAAD issue seems to be one-sided,” an official of a domestic carmaker said. “Korean carmakers have suffered a great deal of sales losses because of the Chinese government’s trade retaliation as well as Chinese consumers’ anti-Korea sentiments. I guess Korea consumers do not care much about it.”


http://m.scmp.com/news/asia/east-asia/article/2093925/korean-consumers-keep-buying-chinese-cars

 

[TaiShang]

Korean consumers keep buying Chinese cars
Chinese cars are popular in South Korea despite a near boycott of Korean brands in China

The Kenbo 600 SUV, the first Chinese passenger car on sale in South Korea, is enjoying major popularity, a stark contrast to Korean carmakers’ struggles in China due to the soured relationship between the two nations caused by a U.S. anti-missile shield.

After Korea decided to deploy a Terminal High Altitude Area Defense (THAAD) battery China came up with various economic retaliatory measures. Along the same line, Chinese consumers have virtually boycotted Korean automotive brands like Hyundai and Kia.

However, Korean motorists seemingly decided not to reciprocate as amply demonstrated by the rising sales of the Chinese SUV.

In order to meet the surging demands, China-Korea Motor, the local importer of the Chinese midsize SUV, plans to import 320 more cars from China by the end of June.

A China-Korea Motor official said the first batch of 120 cars was sold out two weeks after the Kenbo 600 SUV hit the Korean market in January. The Chinese carmaker’s local sales unit immediately imported more but demand outstripped supply.

China-Korea Motor decided to increase the volume of its monthly imports by almost 60 percent beginning in June.
China’s fourth-largest carmaker BAIC Motor produces the Kenbo 600 SUV, marketed as the S6 in China. It mounts a 1,498cc gasoline turbo engine that sports a maximum of 147 horsepower with a 21.9-kgf.m torque and combined fuel efficiency of 9.7 kilometers per liter.

The biggest appeal is its low price.

The Kenbo 600 comes in two models, with a starting price of 19.99 million won (US$16,700) for the Kenbo 600 Modern and 20.99 million won (US$17,720) for the Luxury model.
Initially, industry observers came up with a bleak outlook of the Kenbo 600’s performance in Korea, claiming Korean consumers are not convinced of the durability and safety of made-in-China cars.

There were also expectations Koreans would not buy Chinese vehicles at a time when Chinese motorists shun Hyundai and Kia cars.

But the SUV model silenced pessimists with its impressive sales.

“Demands for the Kenbo 600 are very high. We are struggling to import enough cars to meet the rising demand,” a China-Korea Motor official.

Encouraged by the early success of the Kenbo 600, China-Korea Motor also plans to introduce a compact SUV model by the end of this year.

The importer has yet to officially announce the model, but said its price range is expected to be six million won (US$5,316) cheaper than the SsangYong Motor Tivoli, the most popular mini SUV model in Korea.
“Public sentiment over the THAAD issue seems to be one-sided,” an official of a domestic carmaker said. “Korean carmakers have suffered a great deal of sales losses because of the Chinese government’s trade retaliation as well as Chinese consumers’ anti-Korea sentiments. I guess Korea consumers do not care much about it.”


http://m.scmp.com/news/asia/east-asia/article/2093925/korean-consumers-keep-buying-chinese-cars

Interesting, and promising, especially under new and more rational Korean government.

Haval's SUVs would also perform well there, I bet.

 

[Bussard Ramjet]

Let's hope the share of domestic producers will climb over 70% of the total in a decade. That would mean a huge domestic auto sector that provides millions of well-paying jobs.

China already has almost all of the cars produced locally. So there won't be any additional million of jobs.

 

[TaiShang]

China already has almost all of the cars produced locally. So there won't be any additional million of jobs.

More than half of it are joint ventures. The complete manufacturing chain, including innovative technologies, designing and know how need to be domestically sourced. This will create new industries/sectors and generate new jobs. Not just assembly jobs and retailing.

 

[powastick]

Chinese carmaker Geely to acquire Proton

PARIS/BEIJING: Chinese automaker Geely has agreed to buy struggling Malaysian manufacturer Proton from DRB-Hicom, sources said on Tuesday, beating out rival bidder PSA Group.

Zhejiang Geely Holding Group, which controls Hong Kong-based Geely Automobile and Sweden's Volvo Car Group, will acquire 49 percent of Proton, the sources said. Proton also controls British sports car maker Lotus.

Spokespeople for DRB-Hicom could not immediately be reached for comment after office hours in Kuala Lumpur. The group earlier asked for trading in its shares to be suspended pending an announcement.

Proton, founded in 1983 by former Malaysian premier Tun Dr Mahathir Mohamad, received 1.5 billion ringgit ($338.2 million) in government aid last year on condition that it pursue a turnaround plan and seek a foreign partner.


Other potential bidders have included PSA, the Paris-based maker of Peugeot and Citroen cars, its domestic rival Renault and Japan's Suzuki Motor Corp.

PSA, whose Chief Executive Carlos Tavares had said Proton would be a good fit, did not immediately return calls and messages seeking comment.

Proton re-badges cars from foreign manufacturers to sell in the local market, but its quality has declined in recent years. The company has two Malaysian plants with an annual capacity of 400,000 cars, currently running far below maximum output.

An earlier attempt in 2007 to woo new partners for Proton foundered on the Malaysian government's refusal to allow foreign bidders to acquire control.

Geely's investment would help Proton grow its sales overseas and recover some of the global presence it has lost in recent years, people familiar with the bidding process told Reuters in February.

By offering some of its own technology, Geely hopes to lift Proton's sales in right hand-drive markets including Malaysia, the United Kingdom, India and Australia, they said.

The success of midsize Geely models such as the GC9 sedan and Boyue SUV helped to grow the brand's China sales by 50 percent last year to 765,851 vehicles. - Reuters
Read more at http://www.thestar.com.my/business/...acquire-malaysias-proton/#3Y10m48eW4sKT7t9.99

 

[kankan326]

Geely needs to redesign its logo.

 

[GS Zhou]

Chinese car makers are now increasingly interested to penetrate to the ASEAN market.
- SAIC is very active in the Thailand market. It sold about 10,000 cars in Thailand 2016, and expect to sell 20,000 units in 2017. Considering it is just SAIC's 4th year in the Thailand market, the performance is nice.

- Wuling will start the operation of its Indonesia plant by year-end 2017. Wuling is specialized in compact segment MPV or van. Toyota right now is obviously charging an unreasonable premium from this segment in Indonesia. For example, the Toyota Avanza, 100PS in power, 4.2m in length, needs at least USD 15k in the Indonesia market; but an equivalent model from Wuling, e.g. Wuling Hongguang (五菱宏光), 110PS in power, 4.4m in length, is priced at 7k USD in the China market. Wuling has the potential to gain a big market share from Toyota Avanza. And the Indonesian consumers could also be benefited from Wuling's entry.

 

[TaiShang]

Zhejiang Geely Holding Group, which controls Hong Kong-based Geely Automobile and Sweden's Volvo Car Group, will acquire 49 percent of Proton, the sources said. Proton also controls British sports car maker Lotus.

So, the management will stay in the Proton Holding Group?

Why not buy/sell controlling stake?

 

[powastick]

So, the management will stay in the Proton Holding Group?

Why not buy/sell controlling stake?

No idea, its not being revealed. You can guess.

Geely will fully takeover Lotus. Their engines are terrible. The only thing worth is the brand. In Malaysia perspective, they want to protect their own bumiputera.
https://en.wikipedia.org/wiki/Lotus_Cars

DRB-Hicom to sell 49.9% in Proton to Geely Holding

PUTRAJAYA: DRB-Hicom Bhd is selling a 49.9% stake in loss-making Proton Holdings Bhd to China-based Zhejiang Geely Holding Group Co., Ltd (Geely Holding).

DRB-Hicom said on Wednesday it had reached an agreement for the sale of the stake. Both parties expect to sign the Definitive Agreement in July 2017. It currently owns 100% of the manufacturer of the first national car.

“The deal will also see Proton sell its entire equity in British carmaker Lotus to Geely Holding, which will see the group exit the sports car segment,” DRB-Hicom said.

The two parties signed the agreement in Putrajaya, witnessed by Second Finance Minister Datuk Seri Johari Abdul Ghani.

The deal will enable Proton tap into Geely Holding’s vast range of platforms and powertrains, and will also enable Proton to have access to existing markets of the Chinese carmaker, as well as right-hand drive markets in South-east Asia.

The deal with Proton will offer Geely access into the key Asean market, and also R&D and manufacturing presence in the region.

DRB-Hicom group managing director, Datuk Seri Syed Faisal Albar says the Proton brand will remain present and will grow significantly with the new foreign strategic partner on board.

“Our intention was always to ensure the revitalization of the Proton nameplate. It was Malaysia’s first national car brand and has more than 30 years of history. This deal will be the catalyst to elevate a brand that Malaysians resonate with,” said Syed Faisal.

Geely Holdings, which also owns Volvo Car Corporation and The London Taxi Company, is one of the leading passenger vehicle carmakers in China.

Geely Holdings has facilities across the globe, including 16 manufacturing plants, seven design studios and five research & development centres.

Read more at http://www.thestar.com.my/business/...-proton-to-geely-holding/#Xa5psUA9qrHSbte6.99

 

[Shotgunner51]

So, the management will stay in the Proton Holding Group?

Why not buy/sell controlling stake?

Perhaps local law or policy (investment rules) set thresholds on foreign ownership in some sectors? Anyway this is not uncommon. In practice, management control can still be appointed by minority stakeholder in most legal environments (I'm not sure about Malaysia) as long as shakeholders agree as part of deal. Also there are many other technical ways to get around this, lawyers and accountants can get things done, the only question is what the stakeholders want.

 

[powastick]

Perhaps local law or policy (investment rules) set thresholds on foreign ownership in some sectors? Anyway this is not uncommon. In practice, management control can still be appointed by minority stakeholder in most legal environments (I'm not sure about Malaysia) as long as shakeholders agree as part of deal.

Stirring anti-chinese sentiment here is not in Geely best interest.

 

[TaiShang]

No idea, its not being revealed. You can guess.

Geely will fully takeover Lotus. Their engines are terrible. The only thing worth is the brand. In Malaysia perspective, they want to protect their own bumiputera.
https://en.wikipedia.org/wiki/Lotus_Cars

DRB-Hicom to sell 49.9% in Proton to Geely Holding

PUTRAJAYA: DRB-Hicom Bhd is selling a 49.9% stake in loss-making Proton Holdings Bhd to China-based Zhejiang Geely Holding Group Co., Ltd (Geely Holding).

DRB-Hicom said on Wednesday it had reached an agreement for the sale of the stake. Both parties expect to sign the Definitive Agreement in July 2017. It currently owns 100% of the manufacturer of the first national car.

“The deal will also see Proton sell its entire equity in British carmaker Lotus to Geely Holding, which will see the group exit the sports car segment,” DRB-Hicom said.

The two parties signed the agreement in Putrajaya, witnessed by Second Finance Minister Datuk Seri Johari Abdul Ghani.

The deal will enable Proton tap into Geely Holding’s vast range of platforms and powertrains, and will also enable Proton to have access to existing markets of the Chinese carmaker, as well as right-hand drive markets in South-east Asia.

The deal with Proton will offer Geely access into the key Asean market, and also R&D and manufacturing presence in the region.

DRB-Hicom group managing director, Datuk Seri Syed Faisal Albar says the Proton brand will remain present and will grow significantly with the new foreign strategic partner on board.

“Our intention was always to ensure the revitalization of the Proton nameplate. It was Malaysia’s first national car brand and has more than 30 years of history. This deal will be the catalyst to elevate a brand that Malaysians resonate with,” said Syed Faisal.

Geely Holdings, which also owns Volvo Car Corporation and The London Taxi Company, is one of the leading passenger vehicle carmakers in China.

Geely Holdings has facilities across the globe, including 16 manufacturing plants, seven design studios and five research & development centres.

Read more at http://www.thestar.com.my/business/...-proton-to-geely-holding/#Xa5psUA9qrHSbte6.99

Perhaps local law or policy (investment rules) set thresholds on foreign ownership in some sectors? Anyway this is not uncommon. In practice, management control can still be appointed by minority stakeholder in most legal environments (I'm not sure about Malaysia) as long as shakeholders agree as part of deal.

It might as well be that the sides wanted to have a performance-based ownership. If partnership with Geely generates value for both sides, then, the share structure may be rearranged for full ownership.