Beiqi Holding is actively executing its "big car" strategy, aiming to position Beijing Automotive Industry Corporation (BAIC) as the first camp of China Automobile Group by 2010, assuming no major obstacles arise. This strategic move is part of a broader vision to achieve 2 million vehicle sales in Beijing by the end of the 11th Five-Year Plan and to reshape the structure of the city's automotive industry.
In a speech during the Prudential listing event on March 3, Beiqi Chairman Xu Heyi revealed the ambitious plan, signaling that Beijing Auto is now entering the first tier of national automotive players. The impact of this strategic shift is already being felt across the industry.
According to Beiqi’s production and sales targets, the company aims to reach 1 million vehicles in 2008, which means maintaining an annual growth rate of over 40% through 2010 to hit the 2 million mark. This aggressive growth requires strong leadership and bold decision-making.
Industry experts note that Xu Heyi has shown great determination in driving Beiqi forward, with actions such as talent recruitment, fundraising, and mergers and acquisitions. Beiqi has also revived the Beijing brand, ensuring that the goal of reaching 2 million vehicles is achievable.
Under Beiqi Holding, subsidiaries like Beiqi Foton, Beijing Hyundai, Beijing Benz, and Beijing Automobile Co. are focusing on product innovation and internal development. In addition, they are pursuing external growth through mergers and acquisitions, aiming to contribute a third of the 2 million target through these efforts.
Foton Motors plays a crucial role in achieving BAIC’s 2 million vehicle goal. In 2008, Foton aims to sell at least 440,000 vehicles, with a target of 500,000. According to insiders, this would account for nearly half of Beiqi’s one-million target for the year. Foton is expected to maintain high-speed growth, aiming for 800,000 to 1 million units by the end of the 11th Five-Year Plan, with 20% of sales coming from overseas markets.
Despite its rapid expansion, Foton still faces challenges in boosting overseas sales, which currently account for less than 10%. Analysts believe that breaking into international markets will be key to Foton’s success in reaching the 1 million sales milestone.
Beijing Hyundai is also stepping up its game, aiming for 600,000 sales by 2010. With a 60% annual growth target, the company is focused on product innovation and market expansion. In 2008, it planned to produce and sell 380,000 units, with significant growth expected from new models like the HDC.
To support this growth, Beijing Hyundai made several personnel changes, including replacing its sales head and bringing in experienced leaders. These moves reflect the company’s commitment to achieving its ambitious targets.
Beijing Benz, another key player under Beiqi, is making a strong push in the premium segment. The launch of the Mercedes-Benz C-Class sedan is seen as a critical step in repositioning the brand. Beijing Benz aims to become a leader in the mid-to-high-class car market.
Meanwhile, the Beijing brand is entering a sprint phase. By 2008, BAIC plans to reintroduce its own-brand sedans, with two new models debuting at the Beijing Auto Show. Beiqi Co., Ltd., a key production base, is set to lead this effort, with the potential to sell 100,000 units by 2010.
With strategic management changes and a focus on independent brand development, BAIC is positioning itself as a major player in the Chinese automotive industry. Through continued investment and innovation, the company is well on its way to achieving its ambitious goals.
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