China’s BAIC Motor to Establish Yunan New Factory

BAIC Motor, one of leading automakers in the Chinese market, may reportedly invest RMB 3.6 billion yuan on establishment of a new factory with an area of 2,000 acre in south-west China.

150,000 units of vehicles may expectedly be put into production in the new factory in the end of this year.

Sales of BAIC were 203,001 units with a yearly rise of 61.02% in the first half of 2016, leading to increase in production capacity.

50,000 units of automobiles including mini-truck, mini-van and others, may be produced in the first phase, meeting market demands of countries in south-east Asia; and 100,000 units of products, such as passenger vehicles, parts, and equipment for logistics, may be put into production in the second phase.

Moreover, BAIC may also develop business of alternative energy vehicles in this region, taping the market of south-east Asia.

There had been about 1,140 dealers of BAIC, which may increase to 1,800 in the end of this year, leading to a rise of about 60% in channels, until January of 2016, partly because of subsidies of the company. Establishment of the new factory may increase sales in this region.