JAC to invest $86M in 30,000-unit MPV plant

Shanghai, July 14 (Gasgoo.com) Chinese automaker Anhui Jianghuai Automobile Co., Ltd. (JAC) announced today that it will invest 590 million yuan ($86.4 mln) in building a new multi-purpose vehicle (MPV) facility, China Securities Journal reported.

The MPV project, located in the Baohe Industrial park of Hefei city, capital of Anhui province, will have an annual capacity of 30,000 units. The products to be manufactured at the new facility are of the MPV models developed by JAC with the help of international designers.

According to initial estimates, the new MPV facility at full capacity will generate annual sales revenue of 3.58 billion yuan, with annual net profit of 450 million yuan. The investment is expected to have a 5.5-year payback period.

Jianghuai Auto produced 146,027 vehicles and chassis and sold 145,665 units in the first half of 2009, separately rising 14.82% and 13.92% from a year earlier. In June alone, the automaker sold 25,066 vehicles and chassis, including 5,819 cars.

Notably, in spite of the sluggish MPV sector, it sold 3,455 MPVs in June and a total of 21,581 units in the first half, climbing up 6.73% year on year.

Jianghuai Auto has gained its profit mainly from the MPV and light truck businesses. Its MPV model Refine, ranking first in the MPV sector, has secured a 21.66% market share and contributed roughly 35% of its complete vehicle sales revenue.