Gasgoo.com (Shanghai June 18) - Hainan-based Haima Automobile is entering a new phase this year. "We have applied for credit from banks to support [our] dealership network," Haima Automobile General Manager Wu Gang revealed at the launch of the Haima S7, China Business Journal reported today. According to official statements made before and after the event, Haima has applied for a total of 10.9 billion yuan ($1.77b) in credit from various banks. Haima has previously been tight-lipped regarding the details of the loans, which has led to wild speculation across the Chinese automotive industry.
As Mr. Wu explains, Haima is taking significant steps to reform its dealership network. Mr. Wu believes that the traditional model of individual dealerships will fade out over next few years. In preparation for this, Haima is transforming its dealerships with a new business model in mind. This new model will be based on regional agencies. In this new network, which Mr. Wu calls a "regional model", a key dealership in be selected as the core of the region it is located in. This core will ten develop new dealerships surrounding it. Mr. Wu believes this model is superior to the current system of stand-alone dealerships. "First, [the model allows] for better integration between dealerships and the automotive industry as a whole, and second, this type of system's construction principles can help reduce investment costs."
Haima only managed to sell 128,700 vehicles last year, falling far short of its annual sales target of 157,000 vehicles. "2012 was a very difficult year for Haima," the manufacturer's Marketing Director Tang Si admitted. Mr. Tang explained that a lack of new models to attract customers was the primary factor behind Haima's poor performance, something which the manufacturer had already predicted would be the case.
Haima has taken steps to turn around its fortunes this year, with the S7 urban SUV (pictured) making its market debut in Qingdao, Shandong earlier this month. The S7 comes in six different variants priced between 106,800 yuan and 146,800 yuan ($17,357-$23,857). It was released only a little more than a month after the M3 sedan made its market debut. "The Haima M3 has accumulated approximately 12,000 orders," a Haima representative commented, adding that over 6,000 vehicles having already been sent to their new owners.
The M8 midsize will make its market debut later this year. Furthermore, there are also plans for new a 1.5 L engine-powered SUV model placed below the S7 to come to the market next March. Ten new Haima models covering a variety of different segments will be introduced over the next three years, Mr. Wu added.
