Dongfeng Makes Full Use of Force in the Mini Car Market

It was recently learned from the Wuhan Zhuankou Development Zone that Dongfeng Panan Microcar Base, with an annual production capacity of 200,000 vehicles, is currently under construction. At the same time, Dongfeng's acquisition of Hafei's integration plan has started again. According to industry sources, Dongfeng Motor Group, which is known for producing heavy trucks and mid- and high-end cars, is making every effort to develop the mini-car market.

Pang Hai, deputy general manager of Dongfeng Luan, said that the mini-car base will mainly develop and manufacture 1.3-liter (inclusive) models, which are expected to be put into operation by the end of the year. The initial production capacity will reach 100,000 units, and will be available in the first half of next year. The selling price will be 4.5 million.

The rumors of Dongfeng’s acquisition of Hafei’s integration plan for nearly a year were also initiated after consultation between the Dongfeng Motor Group and the French PSA (Peugeot-Citroen) Group. Hafei is an important manufacturer of miniature cars in the northern China market, with an annual production capacity of over 100,000 vehicles.

It is also understood that Dongfeng and PSA also plan to establish another mini vehicle production line here as the two major shareholders of the Shenlong Motor Company. The third plant of the Dragon, which is about to start negotiations, plans to introduce a PSA mini vehicle production line, including the Peugeot series of all kinds of stylish compact cars. The estimated price is under 80,000 yuan.

Some analysts here believe that if Dongfeng and PSA jointly acquire Hafei successfully, it is very likely that they will be included in the overall planning of the third factory of the Dragon. However, Dongfeng Motor Group's decision makers currently have no response to this speculation.

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