At the end of the acquisition of the Changhe case, Beijing Automotive Group Co., Ltd. (hereinafter referred to as BAIC) announced that it will start production of new capacity projects in Yunnan.
Through continuously advancing the acquisition plans in many places across the country, Beijing Automotive Group has achieved a base plan for South China, North China, Central China, East China and Southwest China. The scale of production capacity has soared. This has made it a comprehensive plan to surpass Chang'an Group and become the fourth-largest automotive group in China. Important chips.
Statistics from the China Association of Automobile Manufacturers show that from January to October this year, cumulative sales of 1.87 million Changan automobiles were ranked fourth in the industry; during the same period, Beijing Automotive Group achieved sales of 1,647,700 vehicles, ranking behind Changan Automobile.
However, for BAIC Group, it is difficult to predict how to drive the “multi-round†fast driving of each production base. A person close to the Beijing Automotive Group told reporters that at present, the mini vehicle market is in a sluggish state. It is unpredictable that BAIC Group's mini vehicle production capacity can increase its sales volume and contribute profits as scheduled. “In addition to the mini-vehicle business, the development of self-owned brand passenger vehicles is still the focus of BAIC Group. However, whether or not new models can be imported into various bases is a test for BAIC Group.â€
Expanded production frequently
This year, BAIC promoted mergers and reorganizations up to 3 cases.
At the beginning of August, Beijing Auto Group achieved plans for the layout of the East China market by acquiring Zhenjiang Automobile Manufacturing Plant in Jiangsu Province. The base is built in Dantu District, Zhenjiang City, Jiangsu Province. The total production capacity of 300,000 vehicles will be completed in two phases with a production capacity of 150,000 vehicles per phase. The first phase will mainly produce SUVs, MPVs and other models; the second phase will mainly produce mid-to-high end products. Vehicles, new energy vehicles, and other automobile parts and components.
The BAIC Group’s plan to acquire Changhe Automobile is also advancing in secret. At the beginning of October, the biggest obstacle to the acquisition of Changhe by Beijing Automotive Group was that the Changjiang Automobile Base's plan to get out of Changan Automobile had been approved by the SASAC.
An unnamed person from BAIC Group told reporters: "At present, negotiations have come to an end and the signing of contracts is on the verge."
A few days later, on October 26, Beijing Automotive Group and the Dehong Dai Jingpo Nationality Government and the Yunnan Jingcheng Group representatives formally signed the BAIC Yunnan Industrial Base (Ruili) cooperation agreement in Kunming. BAIC plans to invest RMB 3.6 billion to build Yunnan Industrial Base, which will be implemented in two phases with a total capacity of 150,000 vehicles. The first phase of the project is expected to be completed and put into operation in 2015, mainly producing commercial vehicles, SUVs and other models.
In this regard, a person close to the Beijing Automotive Group told reporters that "cooperation with the local government and enterprises can help BAIC to solve the problem of auto manufacturing qualifications."
Beiqi Group's overseas acquisition plan is also brewing. Xu Heyi, chairman of BAIC Group, publicly stated: "This year, BAIC Group will actively promote international acquisitions in addition to its acquisitions in China."
Compete for the fourth
This year, BAIC promoted mergers and reorganizations at a high frequency. In the final analysis, it also wanted to achieve the relevant requirements of Beijing. According to the above-mentioned sources close to the Beijing Automotive Group, Beijing’s relevant departments set a goal for the “12th Five-Year Plan†for BAIC Group to surpass Chang’an. The scale of production and sales ranks among the top camps in the domestic automobile industry, ensuring the industry’s fourth-ranking and striving to become the third largest in the country. Grand Auto Group.
Although BAIC Group has already established bases in North China, South China, Central China, Southwest China, and East China, it is still difficult to surpass Chang’an.
"Beiqi Group will continue to promote mergers and acquisitions, especially through the acquisition of Changhe Automobile's Jiangxi Base, which originally belonged to Changan Automobile, not only could weaken Changan's production scale, but also increase the strength of BAIC Group," the industry sources said.
The data shows that in 2012, Changhe Automobile achieved sales of 113,000 vehicles. From January to October this year, its cumulative sales volume was 78,700 vehicles.
Prospects waiting for examination
Through the merger and reorganization, the production scale of BAIC Group has been greatly improved. Will it be able to exert its economies of scale in the future and achieve both prosperous production and sales?
In this regard, some people in the industry believe that "Beiqi Group vigorously expands the production capacity of mini vehicles to lay a hidden danger for the future development."
According to the plan, Beiqi Group's southwestern and medium-sized bases have already begun production of mini-vehicle models, or plans to produce mini-vehicles. However, at present, the micro-vehicle market environment in China has clearly shown a downward trend. According to the data from the China Association of Automobile Manufacturers, the production and sales of crossover passenger cars in October this year were 12.61 million and 127,300, respectively, a year-on-year decrease of 31.63% and 32.27%. From January to October, the number of crossover passenger cars sold was 1.3743 million, which was a year-on-year decrease of 25.45%.
"With the overall market shrinking, apart from SAIC-GM-Wuling and Changan, which were the first to enter the market, it is difficult for future entrants including Chery to make further breakthroughs. It is also difficult to predict whether the BAIC micro-vehicle can achieve strong sales." The industry believes.
At the same time, with the successive launch of BAIC Group's production base, how to promote overall development also tests the BAIC Group's operational and management capabilities.
“Supporting the development of various bases and achieving economies of scale requires BAIC to export funds, talent, technology, and models, and fully test the BAIC Group's ability to integrate resources. According to its current strength, whether this goal can be achieved is still unknown.†A person close to the Beijing Automotive Group said.
At present, the development of BAIC Group relies on three companies: Beijing Benz, Beijing Hyundai, and Beiqi Foton. The development of the self-owned brand passenger vehicle segment is still in a period of ramp-up. It is still at an accumulating stage in R&D and marketing. Data show that from January to October this year, BAIC Group's own branded passenger vehicles sold a total of 131,400 vehicles. As of now, the sales volume of Haobao is only 0.56 million units.
“Holding out high marks is an important way for independent brands to break into the high-end market, but the accumulation of the market and the accumulation of word of mouth are not a day's work. BAIC needs time to run this brand.†Industry sources said to reporters.
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