Another new five-year plan of DFAC released

According to a Chinese Newspaper Nanfang Daily，Last week Dongfeng Automobile Corporation (Dongfeng Automobile 600006) announced a new five-year plan to build an operating pattern of running its three brands through separated sub-networks as well as clearly confirm the new energy vehicle development strategy.

Zhu Fushou general manager of Dongfeng Automobile Corporation said according to their ‘N315 Scheme’, by 2014, the annual sales of Power Train are expected to reach 300 thousand units, overseas sales100 thousand units and vehicle sales 500 thousand units. Besides, based on the coordinated development of their three brands, they wish to contribute a sales volume of more than 15% within the Dongfeng intra-group and account for 15% in the light commercial vehicle market. Also, the minimum annual growth rate is predicted to exceed 15%.

Under the guidance of the new scheme, strategic integration targeted at products and brands will be carried out. Both a high-end and low-end product line will be introduced into the corporation. High-end products will be named ‘Captain’; high-quality products will be called ‘Duolika’ in the hope of becoming international freight specialist and ‘FuruiKa’ with competitive prices will be the main force for the users to create wealth. Meanwhile, Dongfeng will correspondingly establish three marketing divisions to run their brands through independent sub-networks.

Dongfeng also issued its two-stage strategy of new energy vehicle which is to improve the annual production and sales from 1000 to 8500 during the next three years and from 2012 to 2014, to promote the number to more that 20 thousand among which electric light trucks and Van vehicles 650 units, new energy passenger cars 1,450 units and electric engineering vehicles / service vehicles / MPV / mini-car 17,000 units.

As to the export strategies of Dongfeng, till 2014, annual sales volume of overseas business are expected to be accounted for 10% of that in domestic market, which is more that 50 thousand units. Light commercial vehicle is scheduled to become No. 2 within the field with more than 4 billion Yuan sales revenues. Besides, Dongfeng is planning to form ten core markets, covering 20 countries of the whole world’s five areas. Also, they will take chance to enter into the European and American markets. In addition, six overseas production bases will be founded and KD assembling is to occupy 80% of the total export sales.

Referring to the development strategy of Mini-car business, Dongfeng is planning to achieve the number of 200 thousand units in production and sales till 2014, which is 5% of the domestic Mini-car field.　(Translator: Yalong/ Jessie)

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