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Commercial car makers foray into passenger car market

Source: The Beijing News | Date: Dec. 7

  • China's commercial car market has declined for five years in a row while the passenger vehicle market has stepped in to a new normal of moderate growth. Noticeably, the SUV and MPV market segments have reported surging sales. Eyeing huge sales growth in the above-mentioned two segments, many commercial car makers are muscling into the passenger vehicle market.

  • Jiangling Motors and Ford Motor Company have jointly launched an MPV and an SUV with a compact SUV to be launched in 2016. To facilitate the marketing of passenger vehicles, Jiangling has also upgraded its dealer network.

  • Maxus has even renamed its Chinese name to show that it will market both commercial and passenger vehicles.

  • Wuling, a subsidiary of SAIC Motor Group, is also transforming itself from a minivan maker to a company that markets both commercial and passenger vehicles. SAIC-GM-Wuling launched its passenger vehicle brand Baojun in July, 2010.

  • Insiders point out that commercial carmakers will face lots of challenges when they foray into the passenger vehicle market, as they need to adjust their development strategies and transform their marketing channels. In addition, the competition in the passenger vehicle market is also very harsh.