BAIC: Planning sales of 3 million unit by 2025, CV unit Foton stable

JV brands account for 90% of sales; electrification urgently needed for independent brands

2022/11/17

Summary

北汽集团销量

  Beijing Automotive Group Co., Ltd. (BAIC Group) ranked sixth among Chinese automakers with sales of 1,691,000 units in 2021. The sales volume breakdown is 1,039,000 passenger cars and 651,000 commercial vehicles. In August 2022, BAIC Group announced that it will achieve sales of 3 million units by 2025. Of these, 1 million will be NEVs, and the ratio of own brand NEVs will be raised to 75%. Carbon emissions are expected to be reduced by 33% compared to 2020.

  The BAIC Group is particularly dependent on its joint ventures (JVs), with 88% of its sales in 2021 coming from JV models. The JV model breakdown is 54% for Beijing Benz Automotive Co., Ltd. (Beijing Benz) and 34% for Beijing Hyundai Motor Co., Ltd. (Beijing Hyundai). In recent years, the JVs' sales volume has declined significantly due to factors such as the impact of the COVID-19 pandemic and the shortage of semiconductors. Along with this, the group's sales volume continues to decline. The group is increasing its investment in R&D, but is relatively slow in its rollout of electrification. The company released a high-end electric vehicle under the NEV brand Arcfox established with Magna (BAIC Bluepark Magna Automobile Co., Ltd.), but it did not perform well in the market. NEV (New Energy Vehicle) models accounted for only 2% of the BAIC Group's sales volume in 2021.

  The BAIC Group, a large Chinese state-owned enterprise, has its subsidiary BAIC Motor Corporation Limited listed on the Hong Kong stock exchange and has joint venture companies such as Beijing Benz, Fujian Benz Automotive Co., Ltd. (Fujian Benz), and Beijing Hyundai. BAIC BluePark New Energy Technology Co., Ltd. (BAIC BluePark), which manufactures and sells NEVs and provides charging point services, is listed on the Shanghai exchange. In addition, Beijing Electric Vehicle Co., Ltd. produces NEV models under the BAIC Motor brand and high-end EVs under the Arcfox brand at its JV with Magna (BAIC Bluepark Magna Automobile Co., Ltd.). Beiqi Foton Motor Co., Ltd. (Beiqi Foton), which leads the industry with its commercial vehicles, mainly mini- and heavy-duty trucks, is also listed on the Shanghai stock exchange. Beiqi Foton established Beijing Foton Daimler Automotive Co., Ltd. with Daimer Truck and Daimler Greater China to produce engines for Beiqi Foton's heavy-duty truck models under the Auman brand and Mercedes-Benz heavy-duty trucks. In September 2022, Mercedes-Benz Truck's first heavy-duty truck made in China started production.


Related reports:
Chinese Market Q3 2022: SAIC, FAW, and Toyota Promoting FCVs (Nov. 2022)
2021 Chinese market: New vehicle sales up 3.8% to 26,275,000 units, NEV sales 3,521,000 units (Feb. 2022)
Auto Shanghai 2021: BAIC, Changan, GAC, Chery (May. 2021)
BAIC Group: Aiming for production and sales of 4.5 million vehicles by 2020 (Aug. 2017)