"Automotive to the countryside" industry adjustment and rejuvenation plan is difficult to make
On July 2nd, the new district of Hebei Chang'an's production base in Dingzhou City, Hebei Province, officially commenced construction. This development marks a significant step forward for Chang'an Automobile as it expands its manufacturing capabilities. In the future, models such as the Star Card SC1026, SC1028, and the Changan Starlight 4500 series will be produced at this location. The company plans to invest 2 billion yuan to increase the current production capacity of the Hebei Base from 200,000 to 500,000 units annually, signaling the official launch of the North Expansion Project aimed at achieving a total production and sales volume of 2 million vehicles.
At the groundbreaking ceremony, Hebei Province Governor Hu Chunhua, along with representatives from China Ordnance Equipment Corporation, including Party Group Secretary and General Manager Xu Bin, Deputy General Manager Xu Liuping of Chang’an Automobile, and local officials from Baoding and Dingzhou, laid the foundation stone for the new facility.
Chang’an Automobile Chairman Xu Liuping stated during the event that the company would invest 2 billion yuan to expand the existing 200,000-unit production capacity of the Hebei Base to 500,000 units, while also establishing corresponding engine production facilities. This expansion is expected to transform the site into one of the key large-scale automobile manufacturing bases in the region.
The new area of the Hebei Base is located on the south side of the original site, covering 1,000 acres. After the first phase of operations in 2010, the production capacity will reach 400,000 units, with the ultimate goal of reaching 500,000 units. This project follows the recent start of the Chongqing Yuzui New Base, marking another major step in Chang’an’s strategic expansion.
Over the past seven years, Hebei Changan Automobile has grown significantly. Established on July 8, 2002, the company has become a crucial part of Chang’an’s “Northward Strategy.†Starting from a modest 0.3 million units in 2002, the base achieved 160,000 units in 2008 and is expected to reach 245,000 units in 2009, representing an 80-fold increase in production and sales over seven years. Revenue also rose from 505 million yuan in 2003 to 3.913 billion yuan in 2008, nearly an eightfold increase.
In terms of product diversity, Hebei Changan has evolved from a single model to a multi-platform, multi-category manufacturer. It has launched various small passenger cars and commercial vehicles, including the successful Starlight 4500. Currently, the base produces 120 different models across two major product groups and three platforms.
Despite limited land, Hebei Changan has adopted innovative low-input, high-output strategies, enabling rapid growth. The base now operates three production lines with an annual capacity of 200,000 units. As the largest vehicle producer in Hebei, it holds the top market share for minivans nationally and serves as a key export hub for Chang’an’s commercial vehicles in North China.
With the implementation of the national automotive revitalization plan, demand for micro-cars and minibuses has surged. In the first half of 2009, Hebei Changan exceeded 120,000 units in production and sales, showing a 30% year-on-year growth. The newly launched Changan Xingguang 4500 has been in high demand, with sales reaching 14,327 units in the first half of the year and projected to hit 35,000 by year-end.
The growing demand has highlighted the need for further expansion. The Hebei Base, as part of Chang’an’s broader strategy, is set to become a large-scale production hub with a capacity of 500,000 units. By 2012, the base is expected to produce and sell around 350,000 units, supporting Chang’an’s goal of exceeding 2 million units in sales. This expansion reflects the company’s commitment to becoming a global automotive leader.
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