BAIC to the future
With China’s growing awareness for better air quality, BAIC is taking lead in the shift to electric vehicles
IF YOU have an aversion to Chinese- made cars, now is the time to rethink this predisposition.
A visit to the BAIC brand’s headquarters and its passenger vehicle manufacturing plant in Beijing, China, is enough reason to believe that this country is hell-bent on donning a cape of respectability, not just with regards technical and manufacturing specifications for motor vehicles but also in terms of design innovation.
And the bigger piece of news is that China, and in particular BAIC (Beijing Automotive Industry Holding Co. Ltd.), is bringing unit prices several notches lower than its competitors. Talk about breaking down the entry barriers to find its spot in the rough-and-tumble global business of making and selling cars, and about making a grand entrance.
State-owned BAIC is not exactly a newbie in the industry, having been around since its 1958 founding. Its rise in the capitalist world, however, has not always been blessed, even after a series of joint venture agreements with more reputed vehicle giants.
BAIC used to be fifth behind the big four of China’s vehicle manufacturing industry, but thanks to a more recent spurt of marketing and management genius, plus more solid state support, it has stepped on the fourth rung through invigorated sales.
More recently, it has begun
eyeing bigger stakes.
Going international
In 2013, BAIC formed an international arm with the sole purpose of exporting its brand models. Its most recent claim to new fame is being included in Fortune’s list of top 500 companies, from 336th place in 2013 to 248th in 2014.
One of the countries that BAIC has reached out is Universal Motors Corp. (UMC). Last year, after a couple of meetings, UMC formed Bayan Auto with George Chua as president and CEO to handle the BAIC brand promotions and retailing in the Philippines.
Since its launch in September, Bayan has been busy setting up distributorships all over the country to sell the BAIC vehicles. Its best seller, not surprisingly, among OFW families are the MZ40 and MZ45 vans, with prices that start at under half a million pesos.
BAIC’s A1 sedan is another promising product, not just because of its competitively positioned pricing, but also because of the stylish lines and riding comfort. As of now, it may not have the same whistles and bells offered by competing brands in the sedan segment, but price-sensitive prospective buyers may gladly forego on this detail.
For the offroad hunk, BAIC’s X424 is a fitting choice. Part of its allure is the ability to remove the whole roof and side windows—perfect for that mountain or beach drive. This one, too, is interestingly priced below P1.5 million.
The guided tour of BAIC’s facilities, dubbed the BAIC Experience Tour, includes a visit of the company’s electric vehicle (EV) manufacturing plant. With China’s growing awareness for better air quality, the government is introducing incentives that make a shift to EVs more realistic.
Make it happen
In this field, the operative phrase is “Make it happen.” BAIC, being the single biggest manufacturer of EVs in China today, recognizes the many issues of rolling out its EV brand on China’s roads. These are not trifle challenges, starting from setting up charging stations to handling disposal of fuel cells and batteries, but the company seems resolute about carrying out its mandate.
Aside from personally witnessing BAIC’s state-of-the art facilities, a visit to its research and development (R&D) center effectively delivers the clincher that will erase any lingering doubts as to the company’s commitment to becoming a leading automaker in the world.
The BAIC R&D center has a jaw-dropping architectural design but within its many levels and rooms lie more than a thousand bright minds that are working hard to deliver a competitive brand in the Chinese and world market.
BAIC technology is heavily based on Swedish automaker Saab Automobile’s know-how. In 2014, the BAIC Group sold more than 2.4 million cars, a large chunk still within the mainland.
The BAIC plant in Bejing covers an area of 1.06 million square meters. It manufactures the self-owned brand Senova Series compact and luxury passenger vehicles with advanced international standards. Their target is to make the plant as a model facility in the Chinese automobile industry.
The Beijing plant will be fully operational toward the end of the 2015, and will include four automobile manufacturing workshops encompassing press, body, paint and generally assembly workshop, predelivery inspection center, manufacture engineering center, and some other auxiliary facilities including employee apartment, and culture and sports centers.
Presently, the production capacity is at 150,000 single cars per year, with about 2,000 people working at the plant. Production capacity is expected to rise to 300,000 single cars per year when the whole facility is completed this year.