BAIC Group: Aiming for production and sales of 4.5 million vehicles by 2020
Promoting electrification and globalization
BAIC Group is one of the five major automotive groups headquartered in Beijing, the capital of the People's Republic of China. The predecessor of the BAIC Group is “Beijing Automobile Works,” which was founded in 1958 and produced the Jinggangshan small sedan. While the Jinggangshan was not mass-produced, the maker later worked on the production of military off-road vehicles under the orders of the central government. This resulted in the development of the BJ210, the origin of the current Beijing Jeep series off-road models.
A foreign capital joint venture with AMC (American Motors Corporation) began in 1983. It produced Jeep Wrangler based models and vehicles like the Cherokee in China. In the 2000s, the maker signed an overall strategic corporation agreement with Hyundai Motor Company and Daimler AG. In 2014, “BAIC Motor Corporation, Ltd.,” a passenger car division under the group, was listed in Hong Kong.
The BAIC Group's automobile sales (plant shipments) have been steadily increasing, growing to approximately 2.4 million units in 2014, 2.489 million units in 2015, and 2.872 million units in 2016. Although the automaker's market share in China in 2011 was 8%, it has been maintaining a 10% share since 2014.
The sales target for 2017 has been set at 3.1 million units for the entire group. However, the sales volumes of Beijing Hyundai Motor Company, which has the highest unit sales ratio among the group's OEMs, has decreased by 37.4% year-over-year in the period January - May as a result of the deployment of the Terminal High Altitude Area Defense (THAAD) system by the U.S. in South Korea. This has caused the entire group's sales to decrease.
The BAIC Group will aim at electrification and globalization during the the13th Five-year plan (2016-2020) period, in addition to promoting projects including own brand vehicles and new energy vehicles (NEVs) in Central China area, Hunan Province. It is aiming for sales and production of 4.5 million vehicles and to rise to 12th place in the global rankings for automakers.