China Auto Group ranks or changes due to the rise of Changan


The five-year-old Chinese automobile pattern may change this year.

Recently, Zhang Baolin, president of Chongqing Chang'an Automobile Co., Ltd. (hereinafter referred to as Changan Automobile), said in an interview with reporters: "This year, Changan Automobile's sales target is 2.5 million vehicles, an increase of 18% year-on-year."

At the beginning of this year, China's Changan Automobile Group Co., Ltd. (hereinafter referred to as the Chang'an Group) for many years its rival Beijing Automotive Group also announced its sales target for this year. According to the plan, this year the group plans to sell 2.6 million vehicles.

Since Hafei Motor’s contribution to Chang’an Group is minimal, Chang’an Group’s sales this year are likely to be surpassed by BAIC Group, which will enter the first camp of China’s auto group.

For this competitive situation, Zhang Baolin said, “Market competition can often force the rapid development of enterprises. We have prepared for the future competition.”

Automotive Group Qualifying

As early as March 2009, when the "Auto Industry Adjustment and Revitalization Plan" (hereinafter referred to as "Planning") was released, China formed a "four big and four small" automobile pattern.

The plan points out that the state will encourage FAW, Dongfeng, SAIC and Changan’s “Big Four” auto groups to implement mergers and acquisitions nationwide. Support Beiqi, Guangzhou Automobile, Chery, and CNHTC's "four small" auto group to implement regional mergers and acquisitions.

In the past five years, although this pattern has not been broken, the Chang'an Group has always been the object of the pursuit of the Beijing Automotive Industry Corporation and Guangzhou Automobile Group.

However, in the last two years, the major contributors to the sales of Guangzhou Automobile Group and Guangqi Honda Automobile Co., Ltd. have been affected by the overall decline in sales of Japanese cars in China. Sales volume has also fluctuate, which has affected the sales growth of GAC Group. Therefore, the Group’s plan to compete with Changan Automobile was put on hold.

"In 2013, after BAIC acquired Changhe Auto's Jiangxi base, it not only expanded its own sales, but also reduced Changan's sales. This is an important step for the former to go against the latter." Industry insiders believe.

According to the Changan Automobile Plan, the company will achieve sales of 2.5 million vehicles this year, an increase of 18% year-on-year. Hafei Motor's contribution to sales of Changan Group is minimal.

Data shows that sales of Hafei vehicles have fallen significantly in recent years. In 2012, the company sold 45,900 vehicles, and in 2013 it dropped to 16,000 units, a year-on-year decline of 65%. This year, due to the layoffs of Hafei Motors, sales may decline again.

BAIC said that this year the group plans to sell 2.6 million vehicles. If both Chang'an Group and Beijing Automotive Group promote sales according to plan, the latter may enter China's “big four” camp, which means that the Chinese automobile pattern that has lasted for five years will change.

Chang'an's anti-catch-up plan

For the Beijing Automotive Group sales plan will surpass Chang'an Group, the latter seems to have prepared.

Zhang Baolin told reporters: "In the face of competition, we will continue to strengthen our research and development capabilities and introduce new products through platform strategies." Zhang Baolin's product strategy will be launched in two areas: commercial vehicles and passenger vehicles.

“At the end of last year, we have established a commercial vehicle business unit, and research and development capabilities will also be tilted to this area. Future products have been included in the plan,” Zhang Baolin said.

Although he did not reveal the details of the plan, Changan Automobile insiders said: "Future commercial vehicles in Chang'an will form three product platforms. Based on these three platforms, about 10 products will be launched. Before 2015, three new models will be introduced. Models."

Compared with commercial vehicles, the speed of Changan Automobile in the field of passenger vehicles is even better.

Tan Benhong, Minister of Changan Automotive Markets, said: “In the future, passenger cars will also adopt a modular, platform-based development strategy and achieve common parts and components and accelerate the launch of new products.”

It is reported that by 2016, Changan will complete the establishment of four platforms, namely the car platform, SUV platform, MPV platform, cross-boundary vehicle platform, followed by the launch of 15 autonomous passenger car products. The new Benben, which was just launched on March 25th, is a new model that Changan launched on the car platform. This car includes a total of 5 models, are equipped with a 1.4L engine, priced at 47,900 to 59,900 yuan. Tan Benhong told reporters: "Because this car was only launched at the end of March this year, this year's sales target is 20,000 to 30,000, and its sales plan will reach 50,000 next year."

At the same time, the high-end strategy of Changan Automobile is continuing to advance. Zhang Baolin said that this year's Beijing Auto Show, Changan Automobile's first mid-size SUVCS75 will be officially listed, "the next step will be the introduction of high-class cars."

According to the analysis, Changan Automobile will continue to promote its high-end strategy, which will help improve the brand's influence and boost the sales volume of its various models. This will also be an important bargaining chip for Changan Group to attack Beijing Automotive Group.


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