Dongfeng Xiaokang Expands Production: Qingyuan, Guangdong Establishes New Base to Produce Mini Vehicles


Following the start of construction of the Hubei Shiyan base in mid-year, Chongqing Dongfeng Xiaokang minicar entered the South China area and laid the foundation for Qingyuan, Guangdong. Yesterday, the reporter learned from the Qingyuan Economic Development Zone in Guangdong that the Dongfeng Xiaokang mini vehicle project had completed the company registration procedure and was on the ground. It is reported that the total investment of the Dongfeng Xiaokang Qingyuan mini vehicle production base is 1 billion yuan, and the first phase will be put into production by December 31, 2010.

While Chang An was busy integrating Hafei and Changhe, consolidating its leading position in the micro-vehicle field, Dongfeng Xiaokang, a latecomer to the microcar, was not idle. “Chongqing Dongfeng Xiaokang's third domestic vehicle base settled in Qingyuan. It is our matching cluster and the vast South China market.” Yesterday, an official from the Economic Development Zone of Qingyuan City, Guangdong Province disclosed to reporters that at present, the Dongfeng Xiaokang mini vehicle project The company registration procedures have been completed and land leveling work is being carried out. It is understood that Dongfeng Xiaokang Qingyuan Base is located in the Foshan (Qingyuan) Industrial Park, with a total investment of 1 billion yuan. The first phase of the project was completed and put into operation before December 31, 2010, and the output value was not less than RMB 1.5 billion.

CAAM statistics show that in the first three quarters of this year, Dongfeng Xiaokang achieved sales of 150,000 vehicles, of which the market share in August and September was the first time in the industry. “This year, Dongfeng Xiaokang sells more than 500 vehicles per day and is out of stock in many provinces and regions, such as Shandong and Henan.” Dongfeng Xiaokang said that the rapid growth of the market has forced the company's board of directors to unanimously pass the expansion plan.

At present, Dongfeng Xiaokang Microcar already has two production bases in Hubei Shiyan and Chongqing Jingkou. Capacity expansion has been fully started. In June this year, Dongfeng Xiaokang started the 100,000 capacity expansion project at Shiyan base. Within two years, the Shiyan base will have a production capacity of four major product lines and five major categories totaling 200,000 vehicles. At the same time, the 100,000 capacity expansion projects of the Chongqing headquarters are also under construction and are expected to be completed by the end of this year and will be put into operation next year. In the coming year, Dongfeng Xiaokang will have an annual production capacity of 400,000 units. Pang Hai, deputy general manager of Xiaokang Holding Sales Co., said, “We are likely to be ranked third in China's mini vehicle industry by the end of the year.”



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