Facing the depressed state of the passenger car and commercial vehicle market, Jianghuai Automobile Co., Ltd. (hereinafter referred to as "JAC Automobile") has entered the micro-vehicle industry to try to crack the current profitability dilemma. On January 14, Jianghuai Automobile announced that it will invest 200 million yuan in Jianghuai Anchi Automobile, a wholly-owned subsidiary of the company, and invest in an annual production of 150,000 mini-cars. From the acquisition to the capital increase, it shows Jianghuai’s determination to make a big difference. However, given the overall weakness of the mini-vehicle market and overcapacity, it is still not known how the fate of the JAC will be.

Two micro-car bases

For the mini-vehicle project, JAC believes that it will bring new growth and increase profits. "According to the plan, we have to take the high-end route. This road currently seems to have greater potential and more profits." On January 22, a person from the Donghua Office of Jianghuai Automobile told reporters.

Jianghuai Anchi was a subsidiary of Jiangqi Group. JAC acquired it in October last year. In Jiangqi Group, Jianghuai Anchi is positioned as a production base for mini vehicles. At present, there are four major series of SUVs, pickups, micro-cars and micro-electric vehicles. Its core business is locked in SUV and pickup business, which accounts for more than 80% of sales and sales revenue, while micro-vehicles are positioned as a product of Jianghan Group's downward extension from traditional light trucks, and use high-end micro-vehicle as its strategy. direction.

The 150,000 micro-vehicle project built by Anchi Automobile has completed the construction of the plant at the end of last year. It is reported that it will start production in the middle of this year, and the micro-vehicle produced may be a micro-car similar to the MPV model. “Through the expansion of the mini vehicle business, JAC has further improved its diversified brand development strategy, which can reduce risks and realize business expansion.” Jianghuai Automobile once stated in the announcement.

In addition to Anchi Automotive, JAC also purchased 67% of Yangzhou Light Vehicle last year, and Yangzhou Light Vehicle became a holding subsidiary of the company. So far, JAC will add two new micro-car bases.

Microcar roads

From the light truck down to the high-end micro-car, in fact, Jianghuai Automobile had to choose. According to JAC's sales and sales report released on January 5, it achieved sales of 448,800 units in 2012, down 3.78% year-on-year. The MPV business, the main source of its profitability, saw a 9.19% year-on-year decline, and sales of limousines also fell by 5.25% year-on-year to 138,264 units from 145,920 units.

The situation this year is still not optimistic. The industry expects that from the perspective of operations (excluding research and development expenses), the car segment has basically turned losses. The MPV that occupies about 1/3 of Jianghuai’s earnings has experienced such a significant decline, which will definitely affect the overall profitability.

“Commercial activities have made it costly, and the passenger car segment has not performed well enough, affecting the entire company.” On January 22nd, Deputy Secretary-General of the National Automobile Information Federation, Cui Dongshu, stated that there is strong growth potential and profit. The entry into the high-end micro-car market has increased the possibility of profit.

However, the micro-vehicle market is not easily able to win, many large forces: micro-vehicle boss SAIC-GM-Wuling's high-end micro-vehicle Wuling Hongguang has occupied the first position, this year sales of more than 300,000; Dongfeng Xiaokang in The mini-vehicle market has launched two new high-end cars, namely the new mini-vehicle V29 and the mini-bus C37; Changan has launched the new micro-vehicle, including Ono.

In addition to pressure from competitors, the entire downturn environment is also affecting this strategic transformation of Jianghuai to a certain extent.

According to statistics from the China Association of Automobile Manufacturers, in 2012, a total of 2,256,700 micro-vehicles were sold, a year-on-year decrease of 0.07%, which is still low.



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