JINGDEZHEN, Jiangxi – Changhe Automobile Co., Ltd., a subsidiary of BAIC Group, began production of its Q25 SUV on December 27 at the company’s new Hongyuan Factory in Jingdezhen, Jiangxi Province, marking the completion of the first phase of the plant’s first-stage project. The new plant aims to achieve annual output capacity of 450,000 cars and 300,000 engines by 2018.
As an A0-class city SUV, the Q25 is the first passenger vehicle jointly created by BAIC Group and Changhe. It is also Changhe’s first SUV and has a pre-launch price of ¥55,900-¥76,900 ($8,600-$11,831).
Two years ago, BAIC Group restructured Changhe and started a “dual-brand” strategy. As Xu Heyi, chairman of BAIC Group, put it, “the development of Changhe is a vital component of BAIC Group’s national strategic layout.”
For the past two years, BAIC Group has been promoting the development of Changhe in all aspects such as finance, technology, products and management by integrating resources of the Group. In terms of products, Changhe has increased the synergy of R&D with BAIC Group and will successively introduce products from six platforms and 10 derivative models. In the near future, Changhe will produce a wide range of products including cars, SUVs, MPVs and new energy vehicles.
According to BAIC Group’s “dual-brand” strategy, Changhe, among the passenger vehicles of BAIC’s self-owned brands, is supposed to be more youthful, lively, with high performance and reasonable price.
With the support of the “dual-brand” strategy and BAIC Group’s resources, Changhe has made multi-directional progresses. Total vehicle sales of Changhe in 2014 were 141,000 units, up over 32 percent year-on-year. In the first half of 2015, end-user sales were up 12.3 percent.
Changhe has built up 130 new first-tier and 206 second-tier dealerships, with 60 percent of the dealers able to make a profit in 2015.
In the future, Changhe plans to strengthen cooperation with Suzuki while introducing models from BAIC platforms in order to build three brand matrix – Changhe-Suzuki, Changhe CV and Changhe PV.