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Dongfeng taps self brands
By Jin Jing |
December 21, 2011, Wednesday
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Print Edition
Print Edition
CHINA'S Dongfeng Motor Corp plans to invest 30 billion yuan (US$4.7 billion) in the next five years to build itself into one of the biggest domestic manufacturers of self-brand vehicles.
The Chinese partner of Honda, Nissan and Peugeot Citroen aims to triple sales of its own brand vehicles to 3 million units by 2016.
"Our target is to make the Dongfeng brand No.1 in China and No.3 in the world with our own-brand passenger car business breaking into the top ranks," said Zhu Fushou, general manager of Dongfeng.
Dongfeng is among China's home-grown carmakers that want to expand sales of self-brand models after years of assembling for foreign automakers. Chinese auto companies are also keen to develop advanced technologies and stronger competitiveness against foreign carmakers, which are gaining bigger market share in China.
Founded in 1969, state-owned Dongfeng Motor started with pick-ups and heavy duty trucks under its own brand before expanding to the passenger vehicle market in 2005. It also set up joint ventures with Nissan, Honda Motor Co, Peugeot and Kia Motor Corp to manufacture cars for sale in China.
As part of its five year blueprint, Dongfeng plans to roll out 18 passenger vehicle models under its Fengshen, or Aeolus, brand, over the next five years in addition to 20 models for joint venture brands.
Also, it has set a target to export 10 percent of its own-brand vehicles by 2016.
Other carmakers including SAIC Motor Corp have also invested heavily into manufacturing own-brand models even though lower prices threaten profitability and a long period of investment is required to build brand awareness.
"The still growing auto market presents a business opportunity for China's own-brand vehicles," said Yale Zhang, an analyst from Automotive Foresight Co in Shanghai. "The automakers that survive will be the ones that keep developing new products and improving technologies while maintaining price competitiveness. But it would be a relatively long period, like 10 to 20 years," he said.
Dongfeng's five-year ambition was unveiled when it introduced the Fengshen A60 sedan at its plant in Wuhan, capital city of Hubei Province, this month. "The model was the first developed from Dongfeng's higher-end vehicle platform and is an important step to lift the brand image and complete product portfolio," said Xu Ping, chairman of Dongfeng.
In the first 11 months of this year, Dongfeng's sales rose 12 percent year on year to 2.76 million units, including over 300,000 units for its own-brand passenger cars such as the Fengshen H30 Crossover and Fengshen S30 compact. The company expects full year deliveries will exceed 3 million units.
The Chinese partner of Honda, Nissan and Peugeot Citroen aims to triple sales of its own brand vehicles to 3 million units by 2016.
"Our target is to make the Dongfeng brand No.1 in China and No.3 in the world with our own-brand passenger car business breaking into the top ranks," said Zhu Fushou, general manager of Dongfeng.
Dongfeng is among China's home-grown carmakers that want to expand sales of self-brand models after years of assembling for foreign automakers. Chinese auto companies are also keen to develop advanced technologies and stronger competitiveness against foreign carmakers, which are gaining bigger market share in China.
Founded in 1969, state-owned Dongfeng Motor started with pick-ups and heavy duty trucks under its own brand before expanding to the passenger vehicle market in 2005. It also set up joint ventures with Nissan, Honda Motor Co, Peugeot and Kia Motor Corp to manufacture cars for sale in China.
As part of its five year blueprint, Dongfeng plans to roll out 18 passenger vehicle models under its Fengshen, or Aeolus, brand, over the next five years in addition to 20 models for joint venture brands.
Also, it has set a target to export 10 percent of its own-brand vehicles by 2016.
Other carmakers including SAIC Motor Corp have also invested heavily into manufacturing own-brand models even though lower prices threaten profitability and a long period of investment is required to build brand awareness.
"The still growing auto market presents a business opportunity for China's own-brand vehicles," said Yale Zhang, an analyst from Automotive Foresight Co in Shanghai. "The automakers that survive will be the ones that keep developing new products and improving technologies while maintaining price competitiveness. But it would be a relatively long period, like 10 to 20 years," he said.
Dongfeng's five-year ambition was unveiled when it introduced the Fengshen A60 sedan at its plant in Wuhan, capital city of Hubei Province, this month. "The model was the first developed from Dongfeng's higher-end vehicle platform and is an important step to lift the brand image and complete product portfolio," said Xu Ping, chairman of Dongfeng.
In the first 11 months of this year, Dongfeng's sales rose 12 percent year on year to 2.76 million units, including over 300,000 units for its own-brand passenger cars such as the Fengshen H30 Crossover and Fengshen S30 compact. The company expects full year deliveries will exceed 3 million units.
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