SUV-maker Huatai to tap compact car market

Shanghai August 23 (Gasgoo.com) Rongcheng Huatai Automobile, a Chinese SUV manufacturer based in Shandong province, is set to tap the compact car market, currently building its compact car production base with an annual capacity of 200,000 cars, in Ordos city, Inner Mongolia, media reported Monday.

After rolling out its first luxury sedan Huatai B11 on August 16, the Chinese SUV maker, also a partner of South Korea's Hyundai Motor, has got a better understanding of its own-brand passenger car strategy. The Huatai B35 and B21 are scheduled to roll off the company's production line at the end of this year and in the first half of next year, respectively.

With its sedans gaining foothold in the mid- and high-end car market in China, Huatai will extend its product lineup downward into the A-Class and A0-Class segments, with plans to put the production base in Ordos into operation next year.
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"A-Class sedan currently holds bigger market share in China's auto market and is less risky to start with, while A0-Class sedan highlights product personalization with relatively good market outlook, so we will mainly focus on the two types for now," Huatai's president Liu Zhigang said.

Moreover, Liu said Huatai and Italian VM engines are jointly developing the 1.5L diesel engines for the A-Class and A0-Class sedans.

On top of that, the company will continue its cooperation with Hyundai Motor on SUV production. Huatai has hired 37 technical experts from South Korea and most of them from Hyundai Motor to enhance its R&D capability.

Huatai has been making the Hyundai Sante Fe and Terracan SUV for several years and will proceed with the production and sales, launching new generation or upgraded models in the meanwhile.