May 01, 2025

BAIC Dumps Ships and Conquers Cross-border Mergers to Enter European Market


The establishment of Beijing Automotive International Development Co., Ltd. exposed the ambition of BAIC to compete in the international market. In-depth research into the underdeveloped countries such as Asia, Africa and Latin America is just the first step for BAIC. The mature European and North American markets are the end of its international strategy. In fact, Beiqi has long been eyeing the European market. Beihai International Party Committee Secretary and President Dong Yang revealed that BAIC is conducting a feasibility study on the acquisition of two European brands. After the acquisition, the company will use its European production base as an overseas production base of BAIC and enter Europe.

“Our basic idea is to find some medium-sized car brands that have a good image in the European market and have manufacturing capabilities and acquire them, similar to SAIC’s acquisition of Rover.” Dong Haiyang stated that the object of the acquisition must be high-end The brand, Beiqi will also get tickets to Europe through cross-border acquisitions.

In Europe, there are still some brands with high brand awareness but deteriorating business operations. Since SAIC's acquisition of Rover and Geely's acquisition of Volvo, Chinese car companies have become the life-saving straw for the resurrection of European brands. Some European brands that are not well-managed are also inclined to allow Chinese buyers to purchase in order to overcome the predicament. This is also an excellent opportunity for BAIC.

Beiqi spent nearly 200 million U.S. dollars and acquired the ownership of Saab's three vehicle platforms and two series of turbocharged engines to develop its own brands. The launch of BAIC Baobao and the smooth introduction of Saab technology confirmed that the basic line of cross-border acquisition by BAIC is correct. Beiqi will acquire overseas brands as a shortcut to enter the European and American markets, which is the result of a comprehensive analysis of the international market. Only this time, Beiqi tends to completely acquire and completely control each other's brand, instead of just taking it for use.

As a matter of fact, BAIC has been slow to beat internationally. In the previous series of acquisition competition, BAIC did not seize the appropriate period, and some well-qualified brands flowed away from their hands. Those who can get it now only have a few niche brands or brands that are not well-known in China. The acquisition of these brands also bears certain risks. Among these issues is whether it can provide core technical support, whether it can become an important support for BAIC's overseas deployment, and how to solve the problem of dissatisfaction with land and water after its introduction into China. Therefore, we must establish a certain bottom line and standards, conduct thorough research on the acquired brands, weigh the pros and cons, and achieve a truly international dream. Over the past few years, the former employees of the brother companies have been enough to learn BAIC's learning materials.

According to reports, BAIC International has five core businesses: the export of self-owned branded vehicles and parts and components, the import of technology, equipment, and vehicles, product modification, overseas investment and international cooperation. At the beginning, BAIC selected 10 markets for vehicle exports and planned five strategic markets to adopt BRIMS (Brazil, Russia, Iran, Mexico and South Africa).

“We will use five to eight years to make BAIC China a leading company for Chinese automakers to open up overseas markets.” Dong Haiyang stated that the goal of BAIC International is to establish seven overseas operation centers by 2020 and set up local governments in 30 countries. The management agency achieved sales of 400,000 units of vehicles, sales revenue of 50 billion yuan, and profit of 2.5 billion yuan.

Xu Heyi, chairman of BAIC Group, said: "In recent years, the export volume of China's auto industry has gradually increased. Over the past year, it has passed the one million mark. I expect to reach two or three million vehicles in the next two or three years. Overall, it is expected that During the "Thirteenth Five-Year Plan" period, about 30% of production will be internationalized, so I think that internationalization has become a major trend of market development, and it is very clear from the planning of major automotive groups. Over 10 million cars go international, and at least a few million vehicles will go out during the 13th Five-Year Plan period."

He said that the internationalization of BAIC Group will use KD production as the main route, not just selling cars, but simply pursuing sales. "Our other guiding idea is to focus on breakthroughs - Beijing Auto's own brand building adheres to high-end routes, as well as on exports, and strives to create a better brand image for the Chinese automotive industry."

The European market will be the time and space gate for BAIC's internationalization strategy. As long as it can smoothly enter, BAIC's overseas business will break through the entrance. For Beijiang, a “behind”, the implementation of an internationalization strategy is more like a battle.

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