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Economy

Sales, service, localization-the mantra for success of Shaanxi Automobile(2)

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2016-07-04 10:09China Daily Editor: Feng Shuang
Workers check heavy-duty trucks in a factory of Shaanxi Automobile Holding Group Co Ltd in Xi'an, Shaanxi province. (Photo provided to China Daily)
Workers check heavy-duty trucks in a factory of Shaanxi Automobile Holding Group Co Ltd in Xi'an, Shaanxi province. (Photo provided to China Daily)

Boosted by the Chinese government's supportive policies for the new energy vehicle or NEV sector and measures to reduce carbon emissions, the EV industry has achieved rapid growth in the past two years.

According to the China Association of Automobile Manufacturers, China produced 70,552 EVs in the first four months, up 165.3 percent year-on-year. It sold 66,444 EVs during the same period, up 171.2 percent year-on-year.

The company started EV research and development in 1999 when it designed and produced the first electric tractor which was used in Shanghai port.

Wang, general manager of Shaanqi, said the company will invest 50 to 100 million yuan in research and development on electric automobiles this year and increase the investment accordingly in future.

The company produced and sold 900 EVs in 2015. Wang expects the company will produce and sell 2,000 EVs this year.

"The battery technology is the core for electronic automobiles. The gap between China and Europe is narrowing," Wang said.

After rapid growth in previous years, China's heavy truck manufacturing industry is riddled with overcapacity now: production capacity is more than 2 million units a year while demand is less than one quarter of it.

In 2015, China sold 540,000 heavy trucks. Wang expects sales will grow to around 600,000 units this year.

So, the company is looking at niche markets. It has decided to develop new models and offer better service, particularly for the booming logistics industry.

In the January-May period, the company's sales of heavy trucks to the logistics companies rose by 50 percent year-on-year.

The company plans to produce and sell 100,000 automobiles this year, which, if achieved, would ensure 30 percent year-on-year growth.

  

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