[SIZE=4]3 Chinese firms eye RP car assembly[/SIZE]
BY IRMA ISIP
Malaya Business Insights
September 21, 2010
Three Chinese companies have committed to pursue vehicle assembly operations in the Philippines.
These are Jianghuai Automobile Co. Ltd. (JAC), Chongqing Astronautic Bashal Motorcycle Manufacturing Co. Ltd. (Basahn) and Great Wall Motor (GWM) Co. Ltd.
The Board of Investments (BOI) said it has approved the application of the three through their local partners as participants in the Motor Vehicle Development Program (MVDP).
JAC, a comprehensive automaker with a full line of independent brands, entered into a technical licensing agreement with JAC Automobile Philippines Inc.
for the supply of knocked-down (KD) kits, KD parts and components for the assembly and/or manufacture of 1-ton to 3-ton light trucks.
In its representation with the BOI, JAC Philippines said it will start full production in January next year.
JAC Philippines has been importing completely built-up (CBU) units of trucks, buses and cars from JAC Ltd. since 2009.
Based on its plans, JAC Philippines will manufacture trucks and buses and once sales reach 1,000 units per year, JAC Ltd. will expand to the assembly of passenger cars.
producer of all-terrain vehicles and motorcycles, has partnered with Racal Motor Assembly Corp
. under a technical licensing agreement for the supply of KD kits, parts and components for the assembly of motorcycles. Full production commenced last July.
which manufactures sedans, sport utility vehicles (SUVs) and pick-up multipurpose vehicles, has a tie up with Statemotor Corp. which has been importing CBUs since 2009 to test the quality and performance of the vehicle models for market distribution.
The partnership has been expanded into a technical licensing agreement for the supply of KD kits, KD parts and components for the assembly of GWM’s SUVs, pick-up and MPV series.
Commercial assembly operations of Statemotor is scheduled next month.
JAC was founded in 1964 and listed on the Shanghai Stock Exchange in 2001.
JAC is a comprehensive automaker with full-line independent brand vehicles in China, including light, medium and heavy-duty trucks, MPVs, SRVs, sedans, bus chassis, buses, engineering machinery, engines, gearboxes and other key components. After 40 years of development, JAC has achieved an annual production capacity of more than 500,000 units, and ranks in the top 10 of Chinese auto industry.
In 2009, JAC sold 310,000 units of all kinds of vehicles and earned revenues of $3 billion.
Bashan was established in 1997 and has an annual production capacity of 500,000 units with exports to Argentina, Venezuela, Bolivia, Guatemala, El Salvador, Honduras, Cuba, Guyana, South Africa, Egypt, Algeria, New Zealand, Singapore, India, Thailand, Iran, Oman and Pakistan, among other countries.
Bashan ranks among the top 30 exporters of Chongqing province for the past three years. The company’s facilities have a production capacity of 600,000 motorcycles and 1 million engines.
Bashan recently created a twin brand, Junesun, for special vehicles to serve more customers.
GWM is a large multinational company, the first private vehicle automaker listed on the Hong Kong Stock Exchange.
With more than 30 subsidiaries and 28,000 employees, it is capable of producing 500,000 whole vehicles per year that fall into three categories of Hover SUVs, Voleex sedans and Wingle pickups and MPVs. It is also able to produce core parts such as engines and front and rear axles on its own.