Jul 30, 2019 (China Knowledge) - FAW Group will spend RMB 5.4 billion (USD785 million) on its three major car brands over the next three years. This investment can improve its competitiveness and boost sales volume both at home and abroad.
FAW Group has set up joint ventures with several foreign car brands including Volkswagen, Audi and Toyota, becoming one of China's big four automakers. After the investment, FAW expects more than double sales to 100,000 vehicles this year in return. The firm aims to sell 400,000 within three years and realize a profit rate of 6%.
It is said that Hongqi, China's first domestically produced car, will receive RMB400 million (USD58.2 million) for brand promotion and RMB400 million for research and development each year over the coming three years, according to a business plan the company released on July 23.
Its sport utility vehicle line Pentium will receive RMB500 million for marketing and RMB300 million for R&D each year with a view to shifting one million Pentium vehicles over the period. The leading heavy-duty truck brand Jiefang will receive RMB200 million in R&D a year, with a sales target of 500,000 trucks.
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