North China Auto Car Co., Ltd.: Recently, Chen Zenghua, the executive deputy general manager of ZTE Corporation, shared the company’s future vision, stating that ZTE aims to achieve a balanced approach between overseas exports and domestic sales, each accounting for 50% of its total business. The long-term goal is to establish manufacturing facilities abroad, expanding its global footprint. Industry analysts view this strategy as a third path for Chinese automakers, especially those under intense pressure from both domestic and international competition.
Looking ahead, ZTE plans to increase its production capacity to 200,000 vehicles across three key locations. Currently, the company operates three automobile manufacturing plants: the Zhongxing Passenger Car Plant with an annual capacity of 20,000 units, and the Zhongxing Automobile Factory with a capacity of 60,000 units. In addition, the Jiangxi Fuqi Plant, which was reorganized through debt assumption, is now in the process of constructing a new facility. Once operational, the new plant will boost its production capacity to 100,000 units annually. Similarly, two production bases in Baoding are expected to reach a combined capacity of 100,000 vehicles by year-end.
ZTE also maintains a research and development center located at Beijing Zhongxing Tianye Automotive Technology Co., Ltd. This center was responsible for developing the Chiye 2400, which was unveiled before the Beijing International Motor Show in June. According to Chen Zenghua, the company has allocated 340 million yuan this year to develop two new models. Meanwhile, Zhou Zhidong, general manager of the sales company at Zhongxing Fuqi Co., Ltd., announced plans to launch a new commercial vehicle called the CSV next year, marking a significant expansion into the commercial vehicle market.
The recent listing of Great Wall Motors, a private automotive company based in Baoding, has sparked interest in ZTE’s potential move to go public. While Chen Zenghua emphasized that the decision to list should be made carefully, he acknowledged that Great Wall’s success could serve as a positive example for ZTE. He mentioned that the company is considering listings in Hong Kong or Singapore in the future, but only when the timing is right.
In terms of international expansion, ZTE has already made progress. Last year, it exported 7,136 vehicles, becoming one of the top performers in China's auto exports. The company follows a "three-step" strategy for overseas growth. First, it focuses on building a strong marketing and service network to support export sales. Currently, ZTE's main markets include the Middle East, North Africa, South America, and Russia. From January to May this year, the company sold nearly 4,000 vehicles and secured 2,000 orders in May alone.
The second step involves setting up CKD (Completely Knocked Down) or SKD (Semi-Knocked Down) assembly plants in high-tariff regions. For instance, in Vietnam, import tariffs on finished vehicles can reach as high as 150%, while parts are taxed at just 20%. As of now, ZTE has shipped 600 CKD units in the first five months of the year. The company plans to build 4–5 additional CKD factories by 2005, including existing ones in Turkey, Egypt, and Vietnam.
The final stage is to establish full-scale manufacturing plants abroad, which is considered the ultimate goal of ZTE's global expansion. Chen Zenghua described this as a long-term plan, aiming to complete it within 5–10 years.
Industry experts note that as major global automakers expand into China, many domestic SMEs and independent brands face difficult choices—either becoming suppliers for foreign companies or risking being acquired by larger groups. In contrast, ZTE's commitment to brand development and overseas market exploration represents a viable third path for Chinese automakers seeking sustainable growth.
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