Changan and PSA light commercial vehicle joint venture or can learn Jiangling


Comparing the sales of SAIC, FAW, Dongfeng, and Changan, the four largest automotive groups in the first quarter of each of the most recent five years, it can be seen that in the first quarter of the three-year period from 2006 to 2008, the competitive landscape of the four major groups is relatively stable. It is always SAIC, FAW, Dongfeng and Changan, and the sales gap is relatively even. In the first quarter of 2009, although the ranking did not change, the gap between SAIC and the other three major groups was significantly widened. In addition, Dongfeng Group's sales also approached FAW Group. The sales gap between the two groups was only 23,700. In the first quarter of 2010, sales of the Chang’an Group soared by 137.5% to 728,800 units, which surpassed that of FAW (630,800 units) and Dongfeng (62.36 million units), ranking the second place; the sales gap between Dongfeng and FAW also shrank. Less than 10,000 vehicles.

Chang'an Group's sales soared, although it was related to the merger of Hafei and Changhe, but the high growth of its main company, Chongqing Changan Automobile Co., Ltd., was also an important reason. In the first quarter of this year, sales of Chongqing Chang'an Automobile Co., Ltd. increased 88.75% year-on-year to 296,580 units, ranking second in sales of all Chinese autos (including passenger cars and commercial vehicles) in the quarter by the China Association of Automobile Manufacturers.

Changan Automobile Group Co., Ltd. also officially announced its joint venture intention with PSA Peugeot Citroen yesterday. In the future, whether the two parties' joint ventures will indeed produce light commercial vehicles, they will make a certain contribution to sales of the Changan Group, making it more likely to stabilize the position of China's second-largest auto group.

China's joint ventures in the commercial vehicle sector are currently concentrated in heavy-duty vehicles, such as Iveco Hongyan Commercial Vehicles, GAC Hino Motors, Qingling Automobile (Group) Co., Ltd., and Jiangling Motors Co., Ltd. (incorporated Jiangxi Jiangling Motors Holding Co., Ltd. also cooperated with Ford to produce Transit Lightbus.

The sales volume of these joint-venture vehicle companies in China's commercial vehicle market was weaker than some domestic competitors. For example, Qingling’s sales volume in the first quarter of the year (18,142 units) was lower than that of China National Heavy-duty Truck Group Corporation (53,915 units) and Shaanxi Automobile Group Co., Ltd. (30,142 units), Sichuan Nanjun Automobile Co., Ltd. (22,833 units); SAIC Iveco Hongyan sales (8,705 units) in the first quarter were lower than the three domestic automakers and Baotou Beiben Heavy Vehicle Co., Ltd. (10,113 units); GAC Hino First Quarter The sales volume was only 401 vehicles, a decrease of 12.25% compared to the same period of last year. It ranked 86th in the sales volume of all auto companies in the first quarter of the China Association of Automobile Manufacturers.

Jiangling announced that the Transit commercial vehicles sold 11,090 vehicles in China in the first quarter of this year, an increase of 72% year-on-year. It is the most successful of these joint venture commercial vehicle companies. The United States Ford is only the second largest shareholder of Jiangling Motors Co., Ltd. In this joint venture, only the Ford brand automobile of the entire Shunshun, and Quanshun is the "joint development" of Chinese and foreign parties.

If Changan and PSA are to be successful joint ventures in the field of light commercial vehicles, they may learn from Jiangling's experience in product selection and development models.

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