Xu Heyi, chairman of BAIC Holding Group, analyzed that as the country’s various policies to stimulate the economy are being implemented, infrastructure construction projects will be launched on a large scale. The sales of commercial vehicles, especially heavy trucks, will be much better than that of passenger vehicles next year.
"The production and sales volume of domestic automobiles will be relatively stable next year." Xu Heyi said that in 2008 the level of growth of the automotive industry was relatively low, but the fundamentals of the industry remained positive. “In the past, the annual growth rate of GDP higher than 2 to 3 times may not appear again, but the annual single-digit growth is still possible.â€
Xu Heyi said that as the international oil prices and raw material prices have been significantly reduced, it will help the auto industry to reduce production costs, thus stimulating the consumer market. “The government’s rescue policy has a clear driving effect on the auto industry, especially for commercial vehicles such as heavy trucks.†Xu Heyi said that if optimistically estimated, the growth rate in 2009 may be equal to this year. "The situation will be low and high in the next year and will become more apparent in the 2nd and 3rd quarters."
In the future, the demand for the automotive market will decline as a whole, and the economic efficiency will further decline. Beijing Automotive Group will invest 10 billion yuan by the end of this year or early next year, accelerating the joint venture between Foton and Mercedes-Benz, the Cummins engine project, and the development of its own-brand passenger vehicle. Major key construction projects have accelerated the real construction of the Beijing auto industry as a pillar industry of the capital economy.
The heavy truck engine project jointly planned by Beiqi Foton and Daimler-Benz will be the largest joint venture project with the highest technological content in the field of commercial vehicles in China. “The construction of the cooperation project between Beiqi Foton and the United States Cummins Engine is progressing. It is expected that it will be put into production from April to May next year. This project will become a major highlight of BAIC,†said Xu Heyi.
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