Lifan promotes its latest model - the Lifan 820 sedan, set for world release in 2015

Beijing opened the 13th International Automobile Exhibition in April at the Beijing International Exhibition Center. Held biennially in the capital, this show has become one of the top four auto shows in the world. The exhibition, which ran from April 20 to 29, featured more than 1,100 vehicles, including those from China’s own Geely Holding Group Co. Ltd. and Lifan Industry Co. Ltd., with both companies having particular interest in the African market.

China is the world’s biggest auto market, with 17.9 million vehicles sold last year. The importance of the China market to global manufacturers has grown yearonyear. Therefore, it comes as no surprise that companies such as Geely and Lifan are expanding their interests overseas into Africa.

Seizing the opportunity

“We see huge potential in a rapidly growing market, where people love their cars,” Zhang Lin, Vice President of Zhejiang-based Geely, told ChinAfrica. “There is a fantastic relationship with our African team and we look to invest heavily in Africa in the future.”

Zhang stressed how important their research and development is before deciding where to open factories. Population and income are the most important factors when choosing an area to invest in. “We currently have research teams placed in Kenya, Angola and Nigeria; understanding these markets more clearly will help us in meeting our customers’ needs,” he said.

Opening factories in African countries also helps create jobs for the locals. Geely currently employs over 60 workers at their compound in Ethiopia, with the majority of workers coming from the local area. This in turn helps to strengthen the bonds between the two countries and allows for a greater reception for Chinese investment.

In 2013, Geely sold over 12,000 units alone in Egypt, their most successful destination to date. Zhang hopes that by producing and dispatching parts in local hubs in African countries, it will mean they don’t need to import as much as before.

Price competitive

The present day car market has reached a new level of competiveness, highlighted by the sheer volume of manufacturers and car enthusiast present at the exhibition. Zhang is clearly aware of this competitiveness and aims to focus on high quality with a reasonable price, and mentioned that a good price equals a good future.

Chongqing-based company Lifan currently export its parts to over 40 countries worldwide, and sees Africa as an excellent opportunity for expansion. “We plan to invest a lot of money and time in Africa, and we want to open more factories in the near future,” said Rick Wong, Deputy General Manager of Lifan, speaking to ChinAfrica.

Wong spoke very positively of his experiences relating to Sino-African relationships. “We have a very positive attitude and see great opportunities going forward,” he said. 
“The economy and politics between China and Africa is going from strength to strength.”

“We expect to see our profits double in Africa over the next two or three years, while keeping our prices competitive and relationships with our customers as strong as possible,” he stated.

Lifan was promoting their latest model - the Lifan 820 sedan - set to be released in China this year and to the rest of the world in 2015.

Green streets

Automakers in China face challenges including curbs imposed by Beijing, Shanghai and other major cities on the number of new registrations allowed in an intense effort to reduce health-threatening smog.

“The most important car we are promoting at the show is the Lifan 320, as it is a green environmental car and we are fully aware of the current issues faced by pollution,” said Roger Tian, Business Representative of Lifan.

A large number of new energy vehicles were under the spotlight, with 79 new units exhibited. As many Chinese cities are beginning to take serious measures to cut down vehicle emission and reduce air pollution, manufacturers are hoping their electric and environmentally friendly cars will become their new source of profit.