VW to partner with JAC to manufacture and sell LCV in China
- Foreign manufacturers that have established operations in China, through partnerships (JV) with Chinese manufacturers, have mainly targeted the passenger car market, and very few have been interested in commercial vehicles, with the result that this market is today occupied almost exclusively by Chinese builders. The Chinese market for commercial vehicles was at 3.45 million units in 2015, 3.65 million in 2016 and will approach 4 million in 2017. Of this volume, light commercial vehicles (less than 3.5 tonnes) account for nearly 2.2 million units in 2017.
- Foreign manufacturers have therefore every reason to take an interest in this lucrative market, especially as it is invested almost exclusively by Chinese manufacturers today. This is why Renault recently announced that it will create a joint venture (JV) with Chinese OEM Brilliance, to manufacture and market light commercial vehicles in China. For its part, PSA announced that it was associated with Chinese Changan the same reasons. Today, it is Volkswagen’s turn to announce that it will create a joint venture (JV) with the Chinese OEM JAC to serve this market. It is possible that other foreign manufacturers will make similar announcements over the next few months, as there is real expertise in the light commercial vehicle business particularly at European manufacturers, and a large potential market to invest, larger than the European market (2 million LCV sales are expected in Europe in 2017).
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