Beijing Automotive Group Co Ltd (BAIC) announced this week that it has been holding an increased stake of 9.98% in Daimler since 2019. This holding secures the brand a board seat with the German luxury car manufacturer. This emphasises the successful partnership between Mercedes-Benz and BAIC in China and entrenches the long-term plans and commitment between the brands in their joint venture.
BAIC has been Daimler’s main partner in China for years and operates Mercedes-Benz factories in Beijing through the two automakers’ main joint venture, Beijing Benz Automotive. During the Daimler and BAIC partnership, China emerged as the largest global market for Mercedes-Benz and their shared vision and focus on the shift towards electric mobility and digitalization and further entrenched the success of this partnership.
Daimler and BAIC have been in partnership for almost two decades and has been a prime role model for Sino-German cooperation in the automotive industry. BAIC is the key industrial partner for Mercedes-Benz in China. Both companies have made a significant contribution to the development of the Mercedes-Benz business in China. This relationship is also sired by BAICs innovation and market leadership in the EV (Electric Vehicle) space.
BAIC echoes this sentiment and has welcomed this commitment to the joint successful manufacturing and development alliance in the world’s largest car market.
After 63 years of unremitting development, BAIC Automotive Group Co., Ltd. (BAIC Group) has become one of the five largest automotive groups in China. With its headquarters located in Beijing and at the Turin Styling Centre in Italy and production bases all over China, BAIC Group currently has around 130,000 employees. It is one of the automotive groups in China with the most comprehensive portfolio of products, covering the full range from passenger to commercial vehicles.
In 2018, BAIC Group achieved the promising results 2,402,000 sold units, making BAIC Group No. 5 in China’s automotive sector in terms of income and profit, and No.3 in terms of brand value. Today, BAIC Group 124th in the Fortune Global 500 and has been on the Fortune 500 list for the past 9 years.
Business vision and international expansion with BAIC INTL
BAIC International Development Co., Ltd. (BAIC INTL) is a wholly-funded subsidiary of the BAIC Group. Under the guidance of the board’s chairman of BAIC Group, Mr. XU Heyi, BAIC INTL is expanding its cross-border businesses with the aim of building “Global BAIC”. This visionary project will give birth to networks in the main regions of the world: the Middle East, West Asia, Central Asia, Africa, South America and several other regions. It will thus enable the BAIC Group to reach its strategic objectives and achieve internationalisation in terms of talents, markets, products, brand recognition and management. In order to solidify its global presence, BAIC INTL focuses on five main activities: export of finished vehicles and individual components; import of technologies; equipment and finished vehicles; product improvements; overseas investment; international cooperation.
BAIC INTL’s core business is the development of reliable commercial, passenger, electronic and other types of vehicles. The implementation of BAIC INTL’s strategy is based on two main focal points:
- “Strategic business”: The development of the strategic target market and the introduction of complete supply chains.
- “Profitable business”: The import and export of vehicles and components and vehicle remodeling within the scope of international trade.
BAIC INTL is committed to becoming a trendsetter, not only in terms of automobile design, but also by delivering a dynamic, stylish and tasteful lifestyle. BAIC INTL aims to offer vehicles equipped with user-friendly features that meet the standards of the international automotive market and fulfill customer expectations globally. Under the motto “Faster, Leaner, Smarter,” BAIC INTL will use the powerful combination of its innovative spirit and its strong research and development capabilities in order to achieve the top position in technology advancement, out-of-the-box business development and global resources integration.
The BAIC South Africa plant project was officially launched in December 2015. The factory construction kicked off in August 2016. The first production units of SKD vehicles came off the assembly plant floor in July 2018.
BAIC reiterates their plan to become a household name in South Africa and a bigger part of the economy from an employment and skills development perspective. BAIC vehicles are set to become a popular sight on our streets, giving much needed independence and mobility to an up-and-coming market.