JAC has successfully participated in the acquisition of the shares of Kazakhstan’s Allur Group, marking the entry of the JAC Kazakhstan project into a brand-new stage, which it says has become a new benchmark for Chinese independent car brands in ‘the Belt and Road’.
Located in the geographical centre of the Silk Road Economic Belt, Kazakhstan is one of the founding countries of the Eurasian Economic Union. Its economic scale and influence are second only to Russia, ranking first among the five Central Asian countries. As an important window for ‘the Belt and Road’economic belt to connect China and Europe, Kazakhstan radiates the vast regions of Central Asia and Eastern Europe. It is the country with the largest number of contacts with China among the neighbouring countries of Central Asia and is also the key market of JAC.
As an independent brand car company that actively responds to ‘the Belt and Road’initiative, JAC has carried out a large number of market researches, partner inspections, business model analysis on the Kazakhstan market, and finally in 2014, JAC has established a partnership with the local leading automotive group Allur Group and signed a product assembly and distribution cooperation agreement. In March 2015, the ‘China-Kazakhstan Third Capacity Cooperation Forum’ was held in the Great Hall of the People. JAC and Allur Group signed the ‘JAC Product Assembly and authorisation Agreement’, and the Kazakhstan project was officially started. According to the cooperation between the two parties, Kazakhstan’s local auto company will assemble all the models of JAC in China, promote the localisation, gradually export to Russia and the surrounding countries, and gradually reach the production and sales scale of 50,000 vehicles.
High-quality products are the most powerful weapon for independent brand car companies to be competitive in the international market. The good market performance and users’ feedbacks of JAC in South America, Middle East, North Africa, Europe and Asia, have completely changed many overseas users ‘impression of poor quality to Chinese car brands. With the business philosophy of always staying at the forefront of technology, maintaining superior quality, and continuously promoting new products, JAC quickly impressed Kazakhstan partners and market users. In terms of vehicle selection, after fully analysing and evaluating the local climate and automobile use preferences of the Kazakhstan market, JAC first introduced S3, S5 and N series high-end light trucks which were highly competitive to the market. The products have successfully knocked open the door to the market.
In order to achieve a win-win development with Kazakhstan and further improve quality and efficiency, JAC is striving to build a car assembly plant. The automobile assembly plant in the northwestern city of Kustanay has many years of experience in assembling Japanese and Korean cars. It is the only automobile company in Kazakhstan that has welding and painting with the reputation of ‘Kazakhstan National Automobile Manufacturing Center’. The factory is mainly engaged in the assembly and production of foreign-branded cars. Since JAC became the newest member of this family, it has carried out a number of technical renovations and upgrades to the factory, and dispatched technical experts to implement training and guidance on the assembly process to improve the production process creates conditions for high quality product delivery. At present, the products cover SUV S3, S5, N series high-end light trucks, heavy-duty trucks, iEV series electric vehicles, and currently employ 720 people, among which about 700 are Kazakhstan people.
At the beginning of JAC Kazakhstan assembly project, it received the attention and support of the high-level leaders from all walks of life and became a star project of Sino-Kazakhstan cooperation. In 2015, the JAC Kazakhstan auto assembly project was included into the China-Kazakhstan capacity cooperation project list, becoming one of the 32 projects of the Kazakhstan government to revitalise its industrialisation process, and the only car project in the list. On 3 November 2016, JAC held a launching ceremony for its factory project in Kazakhstan, which is another major project of ‘the Belt and Road’ cooperation between China and Kazakhstan.
In January 2017, president Nazarbayev mentioned that the JAC Kazakhstan project is of great significance, not only related to the industrial modernisation process, but also to Kazakhstan’s road to a powerful nation. It was during this year that JAC demonstrated success frequently in Kazakhstan. In June, JAC brought two electric vehicles to the Astana World Expo with the theme of ‘Future Energy’, introducing new energy vehicle products to local people and participating countries. Every day, the booth attracts hundreds of visitors to stop and take pictures, and even car experts from the surrounding CIS countries tested the cars.
In September, JAC iEV7 was unveiled at the ‘Kazakhstan-Uzbekistan Business Forum’ During the forum, Kazakhstan president Nursultan Nazarbayev exchanged with Uzbek president Milziyoyev in depth, highlighting the production of JAC in Kazakhstan. In October, in the fifth automotive industry forum in Kazakhstan, the JAC Kazakhstan project once again became a hot topic. Alik, the first deputy minister of the Ministry of Investment and Development of Kazakhstan, said: ‘JAC electric vehicle products have undergone several rounds of testing at the Kustanay plant. The relevant institutions have conducted extensive researches on the handling of vehicles under extreme cold weather conditions and national infrastructure conditions, and finally proved JAC electric vehicle products as reliable quality!’ On the afternoon of 8 November, President Nazarbayev of Kazakhstan inspected the progress of JAC Project and inquired in detail about related equipment operation, production process and vehicle off-line inspection.
president Nazarbayev hopes that the Allur Group will firmly grasp the cooperation opportunities with JAC, introduce and master the core technologies of automobile manufacturing, and enable high-tech products to quickly achieve localisation. During the inspection of the project site, president Nazarbayev tried to test the JAC iEV6S and praised its stylish appearance, excellent quality and advanced new energy technology. Relying on the technical strength of JAC, it’s pure electric passenger vehicles have created ‘environmental protection wind’ in the local area, bringing safer, smarter and more comfortable travel solutions to consumers in Kazakhstan.
The smooth progress of the Sino-Kazakh cooperation project has greatly promoted the development of the local automobile and parts industry, promoted technological progress, expanded the export of local automobile products, and contributed to the development of ‘the Belt and Road’international logistics channel. With the continuous accumulation of market achievements and brand awareness, JAC began to enter the government procurement, fleet customer areas, and successfully won a group of 138 units of police car tender project from the government police station and other group procurement. As the market share continues to rise, the strategic pace of the JAC brand is accelerating in the Kazakhstan market. Nowadays, there are 17 sales and service outlets in Kazakhstan selling JAC products, which are distributed in 16 major cities and regions. Till April 2019, JAC has exported more than 1,200 units of automobile products to Kazakhstan with an increase of over 100% year-on-year. It is estimated that in the first half of 2019, JAC will realise the exports of 2000 units to Kazakhstan, surpassing the total export volume in 2018.
On 21 May 2019, JAC successfully participated in the acquisition of the Allur Group, the largest automobile industry group in Kazakhstan, and became an important starting point for the promotion of JAC’s Central Asia market internationalisation strategy. With the deepening and continuous development of the project, JAC will continue to actively implement the national ‘the Belt and Road’ initiative to provide more convenient solutions for the people of Kazakhstan with high-quality products and services and establish a new open pattern.
Till now, JAC has established a marketing network covering more than 130 countries and regions in South America, Africa, Middle East, Southeast Asia, Southwest Asia and Eastern Europe, including 65 countries along ‘the Belt and Road”. In 2018, the export volume of JAC in the countries along’the Belt and Road’ reached 56,000 units with a year-on-year increase of 9.9%, accounting for 76% of the total exports of JAC. Of the 19 overseas KD factories, 15 were in the countries along ‘the Belt and Road’. By the end of 2018, JAC had exported more than 600,000 vehicles, and the export volume of the countries along “the Belt and Road” accounted for more than 60% of the total exports of JAC.
JAC will closely follow the new connotation of important strategic opportunities, accelerate the optimisation and upgrading of industrial structure, enhance the ability of scientific and technological innovation, and accelerate green development, promote high-quality development, and build a first-class modern automobile group with international competitiveness, bringing more beautiful car life to more consumers in the countries along ‘the Belt and Road’.