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On October 26, representatives of the Beijing Automotive Group, the Dehong Dai Jingpo Nationality Autonomous Prefecture, and the Yunnan Jingcheng Group formally signed the BAIC Yunnan Industrial Base (Ruili) cooperation agreement in Kunming. This is another new capacity base deployed by Beijing Auto Group.
According to the agreement, BAIC plans to invest RMB 3.6 billion to build the Yunnan industrial base and implement it in two phases. The total production capacity in the two phases will reach 150,000. The first phase of the project is expected to be completed and put into operation in 2015, mainly producing commercial vehicles, SUVs and other models.
In response, the relevant person in charge of the Beijing Automotive Group stated: "There are no details to be disclosed about the future development of this base."
However, the signing of this new cooperation agreement not only means that the BAIC Group's industrial scale will be further expanded, but also the internationalization strategy will also be fully accelerated.
It is understood that after the large-scale merger and reorganization of Beiqi Group, the North China production base with Beijing as the center, the South China production base with Zengcheng as the center, the Huazhong production base with Hunan Zhuzhou as the center, and the Southwest Yinxiang Base as the center have been formed. The southwestern base and the East China production center with Zhenjiang as the center.
As the above production bases are gradually put into production, Beiqi's production scale is gradually expanding. According to data released by Beijing Automotive Group Corporation, in the first half of this year, the group achieved total sales of 1,100,800 vehicles, sales revenue of more than 125 billion yuan, and profits of more than 8.1 billion yuan, an increase of 26.9%, 34.5%, and 18.6% year-on-year respectively. This year, the total sales of BAIC Group will exceed 2 million vehicles. Last year, Beiqi Group achieved a cumulative sales of 1.7 million vehicles.
Insiders pointed out that “after this base is put into production, BAIC will move closer to the “12th Five-Year†production and sales target.†It is understood that according to BAIC's plans, during the “12th Five-Year Plan†period, BAIC strives to achieve production and sales of 350 Millions to 4 million vehicles.
Xu Heyi, chairman of BAIC Group, stated that “Yunnan is an important bridgehead facing the southwestern region of China. Building an automotive industry base in both domestic and international markets in Ruili, Yunnan is an important support for Beiqi Group’s implementation of its internationalization strategy and will provide strong impetus to BAIC. The group develops overseas markets."
According to statistics, in June this year, Yunnan Province plans to establish a “third Eurasian Continental Bridgeâ€, which will use Kunming as a hub to connect China’s western, central and eastern regions through railways and highways, and from Kunming to Dehongruili to the west. Or the Port of Baoshan Monkey Bridge exit, through Burma, Bangladesh, India, Pakistan, Iran, from Turkey to Europe, and ultimately arrived in Rotterdam, the Netherlands, the entire line across 17 countries in Asia and Europe.
After the completion of the "Third Eurasian Continental Bridge", Beijing Automotive Group will have convenient transportation conditions for product export. This year, the BAIC Group's export strategy is also accelerating. In July, Beijing Automobile International Development Co., Ltd. was established and became the company's vehicle export platform.