North China Auto Car Co., Ltd. has set ambitious goals for its future, with executive deputy general manager Chen Zenghua recently stating that ZTE aims to balance domestic and international sales equally, each accounting for 50%. The long-term vision is to establish manufacturing facilities abroad, marking a bold move in the Chinese automotive industry. Industry experts believe this strategy represents a third path for Chinese automakers, especially as they face intense competition and pressure.
In the coming year, ZTE plans to increase its production capacity to 200,000 vehicles across three key locations. Currently, the company operates three main automobile manufacturing plants: the Zhongxing Passenger Car Plant with an annual capacity of 20,000 units, the Zhongxing Automobile Factory with 60,000 units per year, and the restructured Jiangxi Fuqi Plant, which was acquired through debt restructuring. A new facility is under construction at Jiangxi Fuqi, expected to boost its production to 100,000 units once operational. Additionally, two production bases in Baoding are also set to reach a capacity of 100,000 vehicles by the end of the year.
ZTE also maintains an R&D center located at Beijing Zhongxing Tianye Automotive Technology Co., Ltd. This center was responsible for developing the Chiye 2400, which was showcased ahead of the Beijing International Motor Vehicles exhibition in June. According to Chen Zenghua, the company plans to invest 340 million yuan this year to develop two new vehicle models. Meanwhile, the sales company of Zhongxing Fuqi, led by General Manager Zhou Zhidong, announced plans to launch a new commercial vehicle called CSV next year.
The recent listing of Great Wall Motors in Hong Kong has sparked interest in ZTE's potential public offering. As both companies are based in Baoding and share similar private ownership structures, ZTE’s decision to go public is being closely watched. While Chen Zenghua emphasized caution regarding listing, he acknowledged that Great Wall’s success serves as a positive example, showing that private Chinese automakers can gain global recognition. He also hinted that ZTE may consider listings in Hong Kong or Singapore in the future.
Looking ahead, ZTE plans to expand overseas by establishing several CKD (Completely Knocked Down) factories. In 2023, the company exported 7,136 vehicles, becoming one of the top performers in China’s auto exports. Chen Zenghua outlined a three-step strategy for overseas expansion: first, strengthening marketing networks and increasing export sales; second, setting up CKD and SKD (Semi-Knocked Down) assembly plants in high-tariff regions; and third, building full-scale manufacturing facilities abroad.
Currently, ZTE's exports are concentrated in markets such as the Middle East, North Africa, South America, and Russia. From January to May this year, the company delivered nearly 4,000 vehicles and secured 2,000 orders in May alone. Although specific figures for this year were not disclosed, Chen expressed confidence in surpassing last year’s performance. The company is planning to build 4–5 CKD factories by 2005, expanding its presence in Turkey, Egypt, and Vietnam.
Industry observers note that as global automotive giants expand into China, many local SMEs and independent brands are either becoming production bases for foreign companies or facing the risk of mergers and acquisitions. In contrast, ZTE’s focus on brand development and international market expansion offers a viable alternative, representing a third path for Chinese automakers seeking growth without losing independence.
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