Gaining Foothold along "the Belt and Road"
ASTANA, Kazakhstan-Monday, June 19th 2017 [ ME NewsWire ]
(BUSINESS WIRE)-- At the ongoing Expo 2017 in Astana, the leading Chinese automaker JAC Motors and its Kazakhstani distributor showcased three models: the S3, the iEV6S and the iEV5. Echoing the theme of China Pavilion, “Future Energy, Green Silk Road”, JAC also took the opportunity to exhibit their latest green energy vehicle technologies and concepts.
Making a mark in Kazakhstan
As an important nation along the corridor, Kazakhstan connects China with Central Europe via “the Belt and Road” economic zone. The country covers a large region of Central Asia and Eastern Europe and is one of JAC’s most valuable markets. In March 2015, with the blessing of China’s Premier Li Keqiang and Kazakhstan’s Premier Karim Masimov, JAC and its distributor Allur Group, officially signed the KD assembly licensing agreement. As per the agreement, Allur Group, a Kazakhstan automotive company, will be responsible for the assembly of all JAC cars. By signing this agreement, JAC is expected to meet the demands in Russia and neighboring countries and regions and ultimately reach an annual production of 50,000 units.
Following the successful signing of the agreement, on November 3rd, 2016, the premiers of both China and Kazakhstan witnessed the start of another exciting production cooperation project between the two countries via remote video connection at the JAC plant in Kazakhstan. This established JAC as a shining example of a successful independent Chinese automobile company along "the Belt and Road" economic zone.
Successes of "the Belt and Road" Initiative
Utilizing the development opportunities of the "Belt and Road" initiative, JAC has exported products to more than half of the 60 participating countries. In 2016, more than 35,000 units were delivered along "the Belt and Road", making up 62% of JAC’s exports. During the first five months in 2017, JAC exported 21,000 units to the area, making up 66% of all JAC exports.
Thanks in part to their strong investment in R&D, JAC has won the favor of Kazakhstani customers with sales increase of over 500% in 2016, winning No.1 market share among all Chinese brands in the country. In addition, On June 1st, JAC and Volkswagen signed a joint venture agreement in Berlin, Germany to fund JAC Volkswagen Automotive Co., Ltd. The collaboration seeks to further develop the new energy automobile market, once again highlighting JAC’s ambition to further develop their green energy technology.
To date, JAC has formed two joint ventures including Vietnam and established 9 KD assembly plants along the Silk Road Economic Belt, including in Iran and Kazakhstan, for the assembly of JAC light-duty trucks and passenger vehicles. As an active participant in "the Belt and Road" initiative, JAC will continue to provide transportation solutions for customers throughout the Silk Road Economic Belt, helping to establish a reputation of quality Chinese production.
Crystal Feng, +86-551-62296885
Permalink : http://me-newswire.net/news/4096/en