China Zenix Auto International Limited, one of the largest commercial vehicle wheel manufacturers in China by sales volume in both the aftermarket and OEM market, has entered into a strategic partnership with Anhui Jianghuai Automobile Co. Ltd. (JAC), the third-largest commercial vehicle manufacturer in China, to penetrate the electric-powered commercial vehicle market. Zenix Auto is currently the largest wheel supplier to JAC, and JAC is the company’s largest OEM customer.
The Chinese government has established a goal of putting 5 million electric-powered vehicles on the road by the end of 2020 to help alleviate urban smog and reduce petroleum imports. Among the world’s largest crude importers, Chinese crude imports increased by 7.5 percent to 6.59 million barrels per day in the first half of 2015 as China’s large economy continued to expand. Government incentives to increase the use of electric-powered vehicles include free license plates, tax incentives for qualified vehicles and building a nationwide network of charging stations.
Recognizing the significant sales potential for this market, JAC has focused its recent research and development efforts on the creation of electric-powered vehicles. The company states that it plans to become the No. 1 brand of electric-powered commercial vehicles in China, with electric-powered vehicles representing 30 percent of its total production and sales by 2025.
The new JAC-Zenix Auto partnership includes both technology and marketing initiatives to increase the partners’ respective market share in the Chinese commercial vehicle markets, including the burgeoning electric-powered vehicle segment. Zenix Auto will focus its research and development efforts on creating advanced steel wheels for JAC’s high-end, light-duty trucks. In addition, Zenix Auto’s aluminum alloy wheels will become one of the preferred aluminum wheels for JAC heavy-duty trucks. As the research and development collaboration generates improved wheels and cost savings, Zenix Auto will further increase its share of wheels supplied to JAC. Zenix Auto will leverage its extensive national marketing and service network to deliver improved customer service to JAC’s customers and enhance the sales and brand recognition of JAC’s new electric-powered vehicles.
Jianhui Lai, chairman and CEO of Zenix Auto, said, “We are excited to further increase the percentage of our wheels used by JAC through this new partnership. We are already the largest wheel supplier to JAC, providing 100 percent of the wheels for JAC’s heavy-duty trucks and approximately 50 percent of the wheels for its light-duty trucks. Our expanded relationship with JAC further acknowledges the superiority of China Zenix’s technologies, the high quality of our advanced wheels, our ability to provide new customer solutions through enhanced research and development, and our comprehensive service capabilities. We will receive priority consideration from JAC for new orders in addition to building overall market share of our wheels in the Chinese electric vehicle market.”
