JAC maps out its passenger car dream

Anhui Jianghuai Automobile Co.(JAC), one of the biggest commercial vehicle producers in China, recently releases its strategy to enter the passenger car market. By the year 2010, JAC aims to sell 200,000 units of its passenger cars, with the sales revenue of 15 billion to 20 billion RMB.

After gaining a industrial license for passenger car production in Feb., JAC accelerated to make its foothold in the lucrative market.

C926, the first passenger car from JAC will hit the market this July. While 55 car dealers have been chosen and granted with the 4s shop construction design from JAC, the once partner of Hyundai divides the whole market into 200 regions, each region with one major investor who is given carte blanche to build the local distribution network. Thus JAC car dealers can avoid over-competition.  

By 2009, products from all JAC's seven auto platforms will be availed. After the maiden C926 in July 2007, JAC's second A-sector car will be marketed mid next year, then a third model of B-sector in 2009.

According to An jin, general manager of JAC Stocks, JAC will strive to explore the brand-new market in three steps---first, to reach a sales of 3000-5000 units of C926, the first model in 2007; then, to make both ends meet in 2008 with a sales income of 3.5-4 billion RMB, later 80,000 units annually; next, to top 200,000 units by 2010 with 100,000 units of A-sector cars, 50,000-60,000 units of B-sector cars and 20,000-30,000 units of C-sector cars.

"If we can obtain a 95% quality-level of the JV brands, but only set a 70% level of their prices, then we'll have the upper hand in competition." says Cui Yizhang, the JAC marketing manager.