JAC Commercial Vehicles has focused its attention on the relatively weak northern market. In this regard, some analysts pointed out that the Qingzhou new base will provide new impetus for the JAC light trucks to expand into the northern market.
Jianghuai Automobile , 400 million yuan investment, 100,000 light truck capacity - this series of keywords, are closely related to the county-level small town of Qingzhou. On January 19, JAC Motor disclosed that it plans to establish a Shandong branch of commercial vehicles in Qingzhou and launch a light-duty truck vehicle project with a designed annual output of 100,000 units and a total investment of 408 million yuan. The Economic Herald reporter was informed recently on the local visit that for the above-mentioned vehicle-building projects, Yantai, Laizhou and other places have repeatedly thrown the hydrangea at the top of the JAC Group and pursued them with “blanket†preferential conditions. However, Qingzhou eventually got its wish, "matching" and "backstopping" as its biggest capital to win. Leverage the supporting advantages
"It is beneficial to exert the traditional advantages of JAC in the light truck field and expand its market share." For Jianghuai Automobile added 100,000 light trucks to build capacity, Huachuang Securities analyst Gao Li commented. The Herald reporter was informed that in 2010, the production and sales target for JAC commercial vehicles (light trucks, Gehlfa heavy trucks, etc.) was set at 200,000 units, and that during the “12th Five-Year Plan†period, 300,000 units were pointed out. Today, the project with 100,000 light truck capacity settled in Qingzhou undoubtedly highlights the weight of the Qingzhou base. In the Qingzhou p Hill Economic Development Zone, the Jianghuai Automobile Project is located here. “Our 100,000 light truck new base plant has started construction.†said Cui Yizhang, Minister of Marketing of Jianghuai Automobile Co., Ltd. In the location of the project site, blocks of red-brown earth were exposed, and related civil and steel construction projects have started. In fact, in addition to the Jianghuai Automobile Project, a number of large workshop buildings are being built around Qingzhou?p Hill. These workshops are distributed on a hillside and are patchwork. They look spectacular. Large publicity boards standing at the foot of the mountain show that these industrial project areas will be divided into 7 major parks, such as mechanical processing parks and Jianghuai Automobile Park. According to relevant sources of the Qingzhou Investment Promotion Bureau, the JAC light truck will bring in dozens of supporting enterprises to settle in. The relevant investment is expected to exceed 10 billion yuan. An economic circle centering on the “JAC Auto Industrial Park†has begun to take shape. “The reason why Shandong was chosen was that, in addition to Shandong's light truck market and low operating costs, it was also because light truck plants such as Futian and Kama had already settled in Shandong, and various parts and components were well-supported. This is also an advantage platform that Jianghuai Huaibei can borrow on the north. "Cui Yizhang said. In fact, Qingzhou is quietly becoming a hot spot for the industry. Not only did major oil companies such as CNPC, Haihua Group and Shanxi Junwei settled in Qingzhou, but Caterpillar, the world’s largest construction machinery manufacturer and joint venture partner of JAC Heavy Duty Trucks, was the first Fortune 500 company to enter Qingzhou. "In addition to matching and other advantages, there are two other factors that are crucial for Jianghuai Automobile to select Qingzhou." Local government officials told the Herald reporter that one of them was "connections" and the second was development stamina. According to reports, Qingzhou Donghong Industry and Trade Co., Ltd. is one of the largest distributors of “JAC JAC†vehicles in China, and is praised by Zuo Yan’an, Chairman of JAC Group , as “a large company in small areasâ€. “Yan Zhizhong, chairman of Donghong Industry and Trade Co., Ltd., can be described as a sales star of Jianghuai Automobile. He has the advantage of being close to the bridge.†In addition, as a hub linking the Peninsula and the central and western regions of Shandong Province, Qingzhou?p Mountain Economic Development Zone? The location advantage and development potential are also valued by Jianghuai Automobile. Sitting in Shandong Province to seek "to break north" in the JAC positioning, commercial vehicles is its core business, passenger cars is a strategic business. Last year, the sales volume of JAC commercial vehicles exceeded 180,000 units in one fell swoop, which was a year-on-year increase of over 40%, becoming the second-largest commercial vehicle company after Futian , Dongfeng and FAW. Cui Yizhang also stressed that commercial vehicles are still the cornerstone of JAC. In the future, Jianghuai Automobile will continue to increase its investment: heavy trucks, JAC invested 700 million yuan to build a new heavy truck base has been completed, Jianghuai Automobile and North American commercial vehicle giant Caterpillar heavy truck joint venture in progress; light trucks, JAC The construction of a new 100,000 new base in Qingzhou has started. According to the Reporter’s reporter, the base is expected to be put into production in the second half of the year. However, according to the previous pattern, the traditional advantage market of JAC commercial vehicles is in the south. This time, JAC commercial vehicles will focus on the relatively weak northern market. In this regard, some analysts pointed out that the Qingzhou new base will provide new impetus for the JAC light trucks to expand into the northern market. Moreover, as the country’s policy of stimulating auto consumption will continue in 2010, coupled with the new rural construction and the release of rural consumption potential, the Chinese light truck market has great potential for expansion. Since there are visible expectations, it may be reasonable for JAC to implement strategic deployments in advance in the north. However, the Herald reporter noted that there is still a lot of difficulty in the Jianghuai commercial vehicle to go northward. As an important production base for domestic light trucks, there are about 7 light truck manufacturers in Shandong, and only 40% of domestic light trucks are sold by light trucks of Futian, Kaima, Tang Jun, and Dongan. The choice of Beihang breakout points in Shandong, a light truck town, is still facing serious challenges.
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