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JAC plans to up exports this year

Updated: 2013-04-29 09:04
By Ma Chenguang in Shanghai ( China Daily)

Domestic automaker Jianghuai Automobile Co Ltd plans to significantly boost its exports this year, said the company's top executive.

JAC's overall sales goal for the year is 520,000 units, 15 percent of which will be exports, according to the company.

JAC Chairman An Jin said the company sold more than 465,100 units last year, 12 percent of which were exported to more than 120 countries and regions.

The company has more than 500 dealerships and 14 assembly plants overseas.

Founded in 1964 and based in Hefei, Anhui province, the automaker now has a full lineup of independently developed vehicles and components, including light, medium and heavy trucks, multi-purpose vehicles, small recreational vehicles, sedans, buses, construction machinery, engines, transmissions and chassis.

JAC vehicles sell at a higher price in foreign countries than in the domestic market, An said, noting that overseas sales became an important contributor to the 900 million yuan in net profit JAC realized last year.

He said many international distributors recognize JAC as one of the top Chinese auto brands.

On April 19 in Shanghai, JAC and US company Green Tech Automotive signed an agreement to export 2,000 JAC IEV pure-electric vehicles to the United States.

Marianne McInerney, executive vice-president for sales and marketing at GTA, said JAC's continuous improvements in product quality make it "adaptable to every market".

"I think that together we can penetrate into the North American market," McInerney said.

JAC is also displaying the latest product built by its partnership with renowned US truck manufacturer Navistar - the N721 - at the Shanghai auto show.

Norris Wu, general manger for purchasing at Navistar (Shanghai) Trading Co Ltd, said about 500 N721 light-duty trucks will be exported to Mexico this year through Navistar's distributors. The figure is expected to rise to around 1,500 units in 2014 and 2015.

In another development, JAC announced the opening of Fortune Auto Finance Co Ltd during the Shanghai show. This is a 50-50 joint venture with Spain's Banco Santander, which is now Europe's largest bank by market value.

Fortune Auto Finance General Manager Albert Zsolt Farkas said he hopes the financial services it offers can help boost JAC's vehicle sales and win more customers.

"So far, we've received more than 300 applications from our customers," said Farkas.

Currently, JAC vehicles are being sold throughout Asia, Africa, Europe, South America and now in North America.

JAC sold 142,600 vehicles in the first quarter of this year, a jump of 19.25 percent from a year earlier and accounting for 27.4 percent of this year's sales target.

JAC aims to sell 1.6 million units annually and achieve revenue totaling 100 billion yuan by 2015.

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