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Bypasses from the flanks: how China’s JAC will beat Russian drivers

  • January 6, 2023
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Each company carefully plans its actions in preparation to conquer hitherto unknown territories. Russia has thrown open the doors to China’s auto industry, but concerns from the Middle

Bypasses from the flanks: how China’s JAC will beat Russian drivers
Each company carefully plans its actions in preparation to conquer hitherto unknown territories. Russia has thrown open the doors to China’s auto industry, but concerns from the Middle Kingdom are still cautious and choosing their own path to gain a foothold in this new market. The AvtoVzglyad portal looks at the non-trivial extension of JAC.

If you look impartially at the adventures of the Chinese in Russia, it becomes clear that of the dozen and a half brands of the Celestial Empire, who rushed for their share of the treasures in our car-free country, the vast majority acted in a stereotyped way. Without further ado, they export their products and sell them for an incredible amount of money, taking advantage of the lack of competition and excessive demand. Why incredible? Well, try to imagine that a year ago they tried to sell you a crossover from China for 4 million rubles. Wouldn’t you turn around and leave the car dealership furious, cursing the furious dealers?

Chinese companies are content to drive up prices by not opening production in Russia and, with rare exceptions, not even trying to surpass last year’s meager sales numbers. Only Haval, which has its own working factory near Tula, stands out from the general queue. But somehow he doesn’t show desperate sales growth – according to the Avtostat agency, they sold 6.7% less for 11 months than in 2021.

And yet there is another small but very cunning bird who plays his own part and may have a high chance of overwhelming success. This is JAC, which in its history has covered everything you can imagine – from engines and components to forklifts, buses and trucks. It only started producing passenger cars about 20 years ago. Therefore, it is not easy for her to compete on an equal footing with the monsters of the Chinese car industry, even though specialists such as Italian Daniel Gallone, a former designer of Maserati and Alfa Romeo, work with her. The tactics chosen by the company from Hefei were not trivial.

Where are our guards? Where’s the guard?

“Overwhelming, of course…

– Whose?

– Everyone!

Frontal collision – the mere importation of cars made in China – is just a red herring. Therefore, the sales level is low. In total, J7 liftbacks, S3 and JS6 crossovers, T6 pickups and even iEV7S electric vehicles were sold to our compatriots in 11 months in 1484 units. Due to this result, JAC took a more than modest 17th place among all brands and even lost to those that left our country – for example, Renault and VW. But the emphasis was apparently placed on something else – namely, on the guard, who bypasses the flanks.

Firstly, the SKD assembly of the J7 and T6 models has been going on for seven years at the SaryarkaAvtoProm factory in Kazakhstan: right next to us. The capabilities of the enterprise make it possible to produce more than 60 thousand cars, although the Chinese will not be able to fully use them, since other car brands have also taken root on the assembly line. But that is not everything.

The Avtoframos factory, abandoned by Renault, was hastily snapped up by the Moscow government. He will produce Moskvich-3 crossovers, which are essentially a JAC JS4 model and differ from it only by a domestic nameplate. Next year, “Moskvich” will stamp up to 50,000 pieces.

The Chinese company is going to do the same trick with the Sollers group, which must somehow replace the Ford Transit that has left our country. Sollers Argo trucks and Sollers Atlant vans appeared in the catalog of offers. Behind these names are JAC N25/N35 and JAC Sunray. Plans for their production next year also include 50 thousand cars.

Given the strange attitude our authorities have towards the automaker Hefei, I wouldn’t be surprised if the Nissan and Toyota plants in St. Petersburg, abandoned by their owners, as well as the Mercedes-Benz plant near Moscow , are transferred to this company. That will be the number if JAC’s cunning tactics allow her to outright defeat all of her fellow competitors on the Russian field.

Manufacturer’s photo.
  • Manufacturer’s photo.
  • Manufacturer’s photo.

If you look impartially at the adventures of the Chinese in Russia, it becomes clear that of the dozen and a half brands of the Celestial Empire, who rushed for their share of the treasures in our car-free country, the vast majority acted in a stereotyped way. Without further ado, they export their products and sell them for an incredible amount of money, taking advantage of the lack of competition and excessive demand. Why incredible? Well, try to imagine that a year ago they tried to sell you a crossover from China for 4 million rubles. Wouldn’t you turn around and leave the car dealership furious, cursing the furious dealers?

Chinese companies are content to drive up prices by not opening production in Russia and, with rare exceptions, not even trying to surpass last year’s meager sales numbers. Only Haval, which has its own working factory near Tula, stands out from the general queue. But somehow he doesn’t show desperate sales growth – according to the Avtostat agency, they sold 6.7% less for 11 months than in 2021.

And yet there is another small but very cunning bird who plays his own part and may have a high chance of overwhelming success. This is JAC, which in its history has covered everything you can imagine – from engines and components to forklifts, buses and trucks. It only started producing passenger cars about 20 years ago. Therefore, it is not easy for her to compete on an equal footing with the monsters of the Chinese car industry, even though specialists such as Italian Daniel Gallone, a former designer of Maserati and Alfa Romeo, work with her. The tactics of the company from Hefei were not chosen trivially.

Where are our guards? Where’s the guard?

“Overwhelming, of course…

– Whose?

– Everyone!

Frontal collision – the mere importation of cars made in China – is just a red herring. Therefore, the sales level is low. In total, J7 liftbacks, S3 and JS6 crossovers, T6 pickups and even iEV7S electric vehicles were sold to our compatriots in 11 months in 1484 units. Due to this result, JAC took a more than modest 17th place among all brands and even lost to those that left our country – for example, Renault and VW. But the emphasis was apparently placed on something else – namely, on the guard, who bypasses the flanks.

Firstly, the SKD assembly of the J7 and T6 models has been going on for seven years at the SaryarkaAvtoProm factory in Kazakhstan: right next to us. The capabilities of the enterprise make it possible to produce more than 60 thousand cars, although the Chinese will not be able to fully use them, since other car brands have also taken root on the assembly line. But that is not everything.

The Avtoframos factory, abandoned by Renault, was hastily snapped up by the Moscow government. He will produce Moskvich-3 crossovers, which are essentially a JAC JS4 model and differ from it only by a domestic nameplate. Next year, “Moskvich” will stamp up to 50,000 pieces.

The Chinese company is going to do the same trick with the Sollers group, which must somehow replace the Ford Transit that has left our country. Sollers Argo trucks and Sollers Atlant vans appeared in the catalog of offers. Behind these names are JAC N25/N35 and JAC Sunray. Plans for their production next year also include 50 thousand cars.

Given the strange attitude our authorities have towards the automaker Hefei, I wouldn’t be surprised if the Nissan and Toyota plants in St. Petersburg, abandoned by their owners, as well as the Mercedes-Benz plant near Moscow , is transferred to this company. That will be the number if JAC’s cunning tactics allow her to outright defeat all of her fellow competitors on the Russian field.

Source: Avto Vzglyad

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