BAIC’s new subsidiary for export. Target 400,000 in 2020
BAIC establishes new subsidiary for export sales, yearly exports to reach 400000 vehicles by 2020
BAIC Group has announced a new unified platform for its export operations, with the establishment of a new subsidiary company, BAIC International Development, the Beijing Times reported today. The subsidiary will oversee BAIC’s sales and various other operations in foreign markets.
Following slowing growth rates in the domestic market, Chinese manufacturers have been turning their attention to overseas markets. China’s annual automobile export sales volume broke the one million units barrier for the first time in 2012. That number is expected to surpass two million units in the next two to three years. BAIC is among the domestic manufacturers looking to further develop into foreign markets, with its newly released Shenbao (pictured) to be one of its key export models.
The new subsidiary company will have six major responsibilities: automobile exports, auto part exports, shipping from Hong Kong-based ports, overseas financing services, re-assembly of automobiles overseas and international management services. According to BAIC Chairman Xu Heyi, the company will primarily export own brand BAIC models. Export of Beijing Hyundai models will not be covered. The company will also begin exporting Beijing Benz engines next year, Mr. Xu added. Export of Beijing Benz vehicles will commence soon after.
Foreign sales conducted by the subsidiary company aim to reach 77,000 vehicles by 2015. That number is expected to increase to 400,000 vehicles by 2020, with 70 percent of those sales to be manufactured overseas. The subsidiary divides prospective markets into two categories. The first set of regions, including Brazil, Mexico, South Africa and Russia, are strategic markets, while the second set, including North Africa and Latin America, are defined as profit markets.