BAIC Chairman not worried about excess automobile production in China

Gasgoo.com (Shanghai June 26) - Increasing overproduction has become an increasingly contentious issue in the Chinese automotive market. However, at a recent event detailing his company's overseas sales strategy, BAIC Group Chairman Xu Heyi stated that he is not especially worried about the issue, the Beijing Youth Daily reported today. In his view, it is important to consider not only domestic demand for automobiles, but also demand from overseas markets. He points out that Chinese automobile exports are estimated to make up 30 percent of the country's total automobile sales by 2020. Therefore, if China's annual cumulative automobile production capacity reaches 30 million units, total export volume should be around ten million units.

BAIC's stated goal is to sell 400,000 vehicles to foreign customers by 2020. 70 percent of those vehicles will be manufactured overseas. In order to achieve that sales result, BAIC has established a new subsidiary company exclusively dealing with developing and managing its overseas operations. The subsidiary, which is based in Beijing, will oversee the export of own brand vehicles and auto parts, foreign investment and international cooperation. Regional centers will be established in Africa, Western Asia, the former Soviet Union and Latin America over the next three to five years.