Dongfeng Motor, China Gas to team up on auto sale, gas projects

Shanghai (Gasgoo)- Dongfeng Motor Corporation (Dongfeng Motor) and China Gas Holdings Limited (China Gas), a Hong Kong-listed gas operator and service provider, signed a framework agreement on May 8 for a strategic cooperation on automobile sale and gas projects.

Under the collaboration, both parties will deepen their partnership in a number of fields like automobile sale, gas projects, integrated energy services and e-commerce with a view to sharing with each other their market channels, resources and services.

(Photo source: Dongfeng Motor)

Signing the framework agreement will lay the necessary groundwork for two companies' long-term and in-depth cooperation, said Luo Yuanhong, General Manager Assistant of Dongfeng Motor. The automaker and China Gas have to-day conducted teamwork for five years.

“China Gas will continue to provide Dongfeng Motor with its greatest, most stable and safest integrated energy services, and expects both parties to have in-depth collaboration on such programs as gas piping network and clean energy vehicle,” said Liu Minghui, the president of China Gas.

Dongfeng Motor saw its auto outputs and sales in April rise 1.86% and 8.3% year on year respectively to 251,674 units and 244,205 units. During the Jan.-Apr. period, the automaker produced 568,689 units (-37.01%) and sold 606,801 units (-32.69%).

The April sales growth stems from the 38.55% year-on-year leap in CV sales. However, PV sales still dipped 6.77% to 186,511 units.

The gas-powered vehicle plays an important role in Dongfeng's CV unit. According to the automaker, it has owned gas-fueled models that meet the China Ⅵ emission standards like the Tianlong VL, the Tianling KL and the Tianlong KC.

Dongfeng sets up in last April the “h” business unit that focuses on developing upscale new energy PV models. Accordingly, the individual “h” brand is set to be launched this year, Zhu Yanfeng, chairman of Dongfeng Motor, revealed in a letter to employees.