SAIC rolls out own-brand van for global market

China Daily, March 7, 2011

China's biggest carmaker Shanghai Automotive Industry Corp (SAIC) has moved to further consolidate its leading position with its own brand of commercial vans.

Based on technologies acquired from British commercial van maker LDV in 2009, SAIC's Maxus Datong was officially launched on Feb 28 in Shanghai.

The new brand will broaden SAIC's commercial vehicle portfolio that also includes both heavy and light duty trucks and buses.

The Maxus Datong is made at its plant in Wuxi in East China's Jiangsu province, which has a production capacity of 50,000 units annually.

The first batch of light commercial vans is expected to debut at April's Auto Shanghai 2011.

SAIC Motor said it will begin selling the vans globally in the second half of the year.

Xiao Guopu, vice-president of SAIC, said the company's annual commercial vehicle sales are expected to reach 400,000 to 500,000 units by 2015.

The Maxus model produced by LDV received good reviews and sold well across the UK since its launch in 2004. It is used in fleets including the Royal Mail.

"The Maxus Datong is an international brand for SAIC, together with the Roewe and MG sedans. It is an important part in our overall commercial vehicle strategy," Xiao said.

Complete portfolio

Since its commercial vehicle unit began production in 2006, the company has formulated a complete lineup including heavy and light trucks, buses and vans, backed by the R&D capacity of SAIC and Nanjing Automobile Group owned by SAIC.

The vehicle giant said it is now working on a marketing and sales plan for the domestic market and further consolidation of the Maxus overseas sales network.

SAIC's commercial vehicle portfolio now includes the brands SAIC-GM-Wuling, Nanjing Iveco, Sunwin, SAIC-Iveco and Shanghai Huizhong.

The Maxus Datong is its first wholly owned commercial vehicle brand sold both in China and globally.

Experts believe that China's commercial vehicle sector will see robust growth over the next five years due to the nation's massive investment in infrastructure and a continuing rise in the cargo and logistic sectors.

A survey by US consultancy Alix Partners said that in the next few years, BRIC nations - Brazil, Russia, India and China - will become the main growth engines for commercial vehicles globally.

It is estimated that by 2014, annual global production of commercial vehicles will rise by 1.8 million units, Alix Partners said.

In 2010, SAIC sold 3.58 million vehicles, making it the biggest maker in China's automobile market.