FAW Group (Part 1): Forms ten-year plan for own brand business
Annual sales target of 2 million own brand vehicles by 2020
FAW Group ranks third in industry with slow growth in sales volume
China FAW Group Co., Ltd. is a pioneer in the Chinese automobile industry and is the first Chinese automaker to produce cars in China. FAW Group had been the top automaker in vehicle sales volume for a long time in the country (factory-shipment basis), however, it dropped tothe third position in the industry after SAIC Motor Corporation, Ltd. overtook its top position in 2006 and later by Dongfeng Motor Corporation (DFM) in 2010.
Particularly, in and after 2010, its sales volume has been stagnant as the growth rate has been lower than those of other automakers. The sales volume in 2013 was about 2.90 million units. The automaker aims to sell more than 3.4 million units in 2014.
▽FAW Group relies on VW and Toyota brands
The Volkswagen (VW) models, including the Audi, are the top-selling brand among the FAW Group brands in China. About 1.51 million units of the VW models were sold in 2013. The VW models are a driving force for FAW Group to increase its sales. The Toyota models are in second place with a sales volume of about 540,000 units. In contrast to the slump in sales of the Mazda models, the Toyota brand is on a road to recovery from the sluggish sales that had resulted from the worsening political relations between Japan and China. The sales volume of FAW Group's own brand comprising many models totaled to approximately 720,000 units.
▽Sales of group's own-brand cars show signs of recovery, especially in commercial vehicles
The sales volume of FAW Group's own-brand cars (passenger cars and commercial vehicles) reached a record high of 1.04 million in 2010. After that, it dropped to 712,000 units in 2012. Since then, the sales volume has been gradually recovering. It slightly increased to 718,000 units in 2013 due to buoyant sales of the commercial vehicles. Although the sales volume of FAW Group's own-brand passenger cars is declining, sales of FAW Car Co., Ltd.'s own models increased by 65% in 2013.
▽FAW Group announces ten-year plan for its own-brand business and new energy vehicle strategy
In May 2014, FAW Group announced its ten-year plan (up to 2025). In the plan, the automaker sets an annual sales target of over 2 million units of its own-brand cars (factory-shipment basis, including exports) by 2020. The automaker also aims to hold more than 15% market share of new energy vehicle market, including electric vehicles (EV) and plug-in hybrid vehicles (PHV) in China.
* SAIC Motor's brand strategies and operations (Apr. 2014)
* China: Vehicle sales forecast to grow over 12% in 2014 (Feb. 2014)
|FAW Car's high-end sedan "Hongqi L5" and its interior (at the 2014 Beijing Motor Show)
The standard selling price starts from CNY 5 million (JPY 83 million). It is an all-time high price for a Chinese own-brand passenger car. It is available in limited numbers from April 2014.
Organization chart for China FAW Group
Principal data on China FAW Group (as of end of 2013)
Company name: China FAW Group Co., Ltd. (commonly referred to as FAW Group)
Number of employees of entire group: Over 120,000
Automobile sales (fully covers passenger car and commercial vehicle segments): Approximately 2.9 million units in 2013; over 24 million units on a cumulative basis
Provided with a supply chain that has a relatively strong competitiveness
60% of the subsidiaries and 70% of the total assets are jointly owned by FAW Group and outside companies, including foreign automakers (joint ventures, etc.).
Source: China FAW Group's 2013 annual report and media reports
|▽Grand total (FAW Group)||1,944,576||2,558,166||2,601,451||2,672,627||2,894,782||1,393,313||1,529,452|
|Owned brand vehicle||753,829||1,037,983||900,654||711,638||718,251||358,049||319,437|
|JV brand vehicle||1,190,747||1,520,183||1,700,797||1,960,989||2,176,531||1,035,264||1,210,015|
|Commercial vehicle (Coaster)||5,263||5,734||8,219||4,833||5,541||2,600||1,592|
▽(Of which) Passenger vehicle： sales volume by OEM (factory shipment basis)
(Tianjin FAW Toyota, Sichuan FAW Toyota)
|(Reference)* Coaster by Toyota JV||5,263||5,734||8,219||4,833||5,541||2,600||1,592|
|(Reference) * Total on Toyota brand with FAW||422,562||511,665||537,365||527,013||546,585||247,156||252,888|
|VW Group JV (FAW-VW)||669,180||869,979||1,034,888||1,328,888||1,512,887||732,984||906,208|
|GM JV (FAW-GM)||1,157||1,270||174||94||8||8||7|
|(Reference)* Light truck/Pickup and the other light vehicle of FAW-GM||33,353||86,954||55,958||55,515||59,084||29,721||28,079|
|(Reference) * Total on FAW-GM||34,510||88,224||56,132||55,609||59,092||29,729||28,086|
|Mazda contract manufacturing (FAW Car plant)||99,005||138,539||128,544||105,088||117,059||55,124||50,919|
|FAW Car (Hongqi, Besturn and Oley series)||89,136||132,405||112,818||79,124||130,535||50,929||84,817|
|Tianjin FAW Xiali||212,222||250,360||253,035||185,018||130,511||71,526||37,301|
|FAW Jilin Automobile||56,048||119,294||103,645||90,942||79,968||40,821||21,898|
|FAW Haima Motor||91,063||140,332||151,716||128,747||107,758||61,462||40,016|
|△Passenger car Total||1,635,110||2,158,110||2,313,966||2,440,081||2,619,770||1,257,410||1,392,462|
Note: The figures of the (Reference)* are not counted in the Passenger car Total.
▽Commercial included：sales volume by type (factory shipment basis)
|Type of commercial vehicle||2009||2010||2011||2012||2013||Jan.-Jun.
|(Of which) Toyota Coaster||5,263||5,734||8,219||4,833||5,541||2,600||1,592|
|Semi trailer tractor||74,685||143,887||97,883||63,558||80,807||37,241||41,805|
|△Commercial vehicle Total||309,466||400,056||287,485||232,546||275,012||135,903||136,990|