JAC: NEV becomes strategic core business

Shanghai (Gasgoo)- In June this year, JAC signed an agreement with Volkswagen about new-brand new energy vehicles (NEVs) manufacturing. Thus, JAC became the third partner of the latter in China.

Actually, recent years have seen JAC Motors' strategic focus on NEVs, the launch of a series of products and their increasing sales thereafter.

JAC aims to sell 200,000 NEVs by the end of 2020, and the sales of NEVs accounts for 30% of the total sales in 2025. To achieve that goal, JAC will launch 7 new energy vehicle models by 2020.

So far, JAC Motors has already developed two generations of pure electric vehicle platform, including eight generations of products. The first generation from iEV1 to iEV4 was developed based on traditional fuel cars. The second series started from iEV5, and were specifically developed for electric cars. This year, JAC Motors launched new products including iEV6E, iEV7, iEV4-2017, and iEV7S.

The NEVs of JAC gained a noticeable performance while the sales of traditional fuel cars went down. According to statistics, the sales of pure electric passenger vehicles in October this year grew by 244.33% year on year to reach 3,247 units; and the total sales from January to October grew by 74.11% to reach 20,742.

However, the industry sources revealed that, though the sales of JAC pure electric passenger vehicles increased steadily, yet it may not become a pillar for sales like SUV in the near future.

As mentioned, on June 1st, JAC signed a cooperation agreement with Volkswagen on JV. According to the agreement with a JV term of 25 years, both sides will own 50% shares, to develop, manufacture and sell NEVs, and provide transportation services. JAC and Volkswagen will launch pure electric cars by fully utilizing technology and business advantages of both sides for their cooperation. The new JV will have its own brand and logo to innovate technology cooperation and business models, and explore the market in China and other countries.

The industry analysis pointed out that, through the bilateral cooperation, JAC can improve the competency and popularity of its products, and in the meantime, Volkswagen can occupy more market shares to achieve its "2025 Strategy".