3 Chinese automakers join MVDP

MANILA, Philippines - Three Chinese auto manufacturers are taking part in the Motor Vehicle Development Plan (MVDP), the Board of Investments (BOI) said.

The three newest participants of the MVDP are Jianghuai Automobile Co. Ltd., (JAC) Great Wall Motor (GWM) and Chonging Astronautic Motorcycle Manufacturing Co. Ltd. (Bashan).

JAC entered into a technical licensing agreement with JAC Automobile International Philippines Inc. for the supply of Knocked-down (KD) kits, parts and components for the assembly and manufacture of one to three ton light trucks. The company said it will start full production by January next year.

Likewise, it said it will manufacture and assemble trucks and buses with Jianhuai Automobile. which, if they can successfully sell 1,000 units of buses and trucks annually, then they will again partner for the assembly and manufacture of passenger cars.

JAC is listed on the Shanghai Stock Exchange and has been a comprehensive automaker with a full line of independent brand vehicles in China. It has an annual production capacity of more than 500,000 units and ranks among the top 10 in China’s auto industry.

Meanwhile, GWM has tapped Statemotor Corp. as its local partner. Statemotor has been importing completely built units (CBUs) from GWM since 2009. Recently, GWM entered into a technical licensing agreement with Statemotor for the supply of KD kits, KD parts and components for the assembly of GMW’s SUVs, pick-ups and MPV series. Full operations will begin by October.

GWM is China’s first private automobile enterprise listed on the Hong Kong Stock Exchange. The company has 30 subsidiaries, producing three kinds of automobiles, sedan SUVs and pick- zup MPVs.

Bashan, on the other hand, has Racal Motor Assembly Corp as its local partner for motorcycles parts and components. Bashan has an annual capacity of 500,000 units primarily marketed to Argentina, Venezuela, Bolivia, Guatemala, El Salvador and South Africa.