FAW Group (Part 2): Strategies and model plans for own-brand vehicles

18 new models to be launched within next five years



FAW own-brand's units sales
▽Target to sell 2 million own-brand vehicle units in 2015 delayed until 2020

  Actual unit sales by the China FAW Group by brand showed that sales of VW/Audi grew rapidly, while sales of Toyota and Mazda remained stagnant. Sales of China FAW's own-brand vehicles, the focus of this report, have been sluggish due to delays in remodeling and other factors. Compared to plan, actual unit sales have been decreasing for the past few years, and the target to sell over two million own brand vehicles in 2015 has been delayed to 2020.

▽Group plans to launch 18 new vehicle models (both commercial and passenger vehicles) over the next five years

  The Group has been advancing activities on its own-brand vehicles recently, in terms of developing engines, core products for eco-friendly vehicles, chassis, and production technology. The Group has gained enough knowledge about VW's, Audi's, Toyota's, and Mazda's technology, and also learned enough about production methods, to the point where it can now on its own build finished-vehicle platforms and develop core parts. The Group announced that it will launch a total of 18 own-brand, new vehicles between 2016 and 2020.

▽Consolidating mini- and small-car sales network; expanding Jiefang commercial-vehicle sales network farther west

  The Group is reorganizing its small-car sales network that includes FAW Jilin's light vehicles, FAW Car's passenger cars, Tianjin FAW Xiali Automobile's compact passenger cars, etc. In addition, it is developing its commercial-vehicle sales network covering vehicles built by FAW Jiefang and FAW Bus & Coach, expanding further into western China.

Related reports:

  * FAW Group (Part 1): Forms ten-year plan for own brand business (Aug. 2014)

  * SAIC Motor's brand strategies and operations (Apr. 2014)

  * China: Vehicle sales forecast to grow over 12% in 2014 (Feb. 2014)


Organization chart for China FAW Group

Organization chart for China FAW Group

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