BAIC Group: plans to enhance proprietary brand car business
Establishes platform for middle to high-end models based on Saab's technology
BAIC Group announced that it is planning to increase its production/sales volume to 3.5 to 4 million units, revenue to 400 billion RMB, operating profit to 27 billion RMB, and market share to at least 10% in the span of five year starting from 2011. BAIC Group aims to become ranked as one of the top 15 companies in the global automobile market by 2015. At the same time, it has also set its goal to be selected as one of the Fortune 500 companies.
The Chinese automaker plans to produce/sell more than 2 million units of its proprietary brand models of targeted production and sales units of 3.5 to 4 million. Additionally, of these 2 million units, BAIC Group have allocated 900,000 unitｓ of passenger cars under its own brand emphasizing its position to enhance its proprietary brand in this sector.
At the end of 2009, BAIC group acquired intellectual property rights relating to core technologies including platforms and engines from Saab, establishing an important foundation to enhance its proprietary brand in the passenger car market. At the Auto China 2012 held in April 2012, the automaker announced its new technology platform based on Saab's technology, M-trix, for its proprietary passenger cars. It also showcased its latest four models developed based on this M-trix technology.
As for the joint venture business with foreign funding, Beijing Hyundai, a joint venture OEM with Hyundai, announced that it will focus on improving its brand value as its new growth strategy. It aims to increase its unit sales percentage of the middle to high-end models up to 50% by 2015. Moreover, BAIC group's joint venture with Daimler, Beijing Benz, has been localizing its engine production and vehicle R&D activities. Additionally, it has made its first export of locally produced vehicles in late 2011.
As for commercial vehicles sold under its proprietary brand, a long term plan ending in 2020 is in place for Foton Motor to drive enhancement of its production sites and development of foreign markets. In February 2012, BAIC group established an equally owned commercial vehicle OEM with Daimler.
Related Reports: Beijing Motor Show 2012 - BAIC Group