Gasgoo (Shanghai, August 23)—SAIC YueJin， the second commercial vehicle subsidiary of SAIC Group in China, may be established in November of this year.
Yuejin has separated from Iveco in terms of business since July, 2016, becoming a subsidiary of SAIC. Now, it has been a business unit of the company.
Performance of Yuejin reportedly led to decrease in revenue of Nanjing Iveco, resulting in separation on one hand. Moreover, SAIC has been not satisfied with the way Iveco has run business of Yuejin.
Though achieving a yearly rise of 51.5% in sales in July, Yuejin hasn’t made great profit due to low price and product layout.
However, focusing on light duty truck, Yuejin may increase product lines of CV in SAIC, improving sales.
SAIC may be able to provide support in terms of technology, resources, talents, marketing strategies, power train, and supply chain for the development of Yuejin. Yuejin may tap markets including pickup, SUV, and MPV, making great progress, according to insiders of SAIC.
Great growth in industries of high added value, including E-commercial express, cold chain, health care and others, logistic companies have emphasized on improvement in transportation efficiency and decrease in cost, leading to that low-end LDT may fail to meet the market demands. After becoming a part of SAIC, Yuejin may be able to seize the opportunity when LDT market is developing into high-end market.
However, governmental policies may have great impact on sales of truck, as pointed out some analysts in China. Decrease in the number of infrastructure programs may led to decrease in the number of users. Moreover, development in emission standards has led to increase in cost. Development of mini truck has led to decrease in demands of LDT of some types to certain extents. As a result, improvement in production and sales of products of Yuejin may not take place in a short time. On the contrary, long-term development may be better choice for the brand.
