China Car Times

One of our readers, Mr. Schwartz, kindly sent us his company write up of Lifan Automotive. Mr. Schwartz used China Car Times as a resource when writing about Lifan, and found a wealth of information which translated into a decent article about Lifan.

 

Lifan  - Giant of the moutains

Chongqing Lifan Industry (Group) Co., Ltd is an awakening giant. A company with a history dating to only 1992 enjoying a history success with a recipe for developing into a true powerhouse is positioning itself to become the Chinese Toyota. Lifan has been granted many awards by the Chinese Government including the prestigious China Top Brand award and is rated as the fourth most valuable company in the central China manufacturing Mecca of Chongqing.

No one is to say these are small feats for a privately held, even one ranking among Chinas largest, company with a short history. Approval for export and import of its products was granted in 1998. The 2007 fiscal year saw Lifan become the number one net exporter of Chongqing with US 40Billion being exported to over 100 nations.

American Insurance Group, or AIG recently purchased a 25% stake in Lifan and Lifan hopes to raise RMB 1billion with its IPO planned for late this year on the Shanghai A-Market. The ambitious goal of producing 500,000 vehicles a year by 2010 has been set with factories in car production at home and in countries such as Russia, Vietnam, South Africa, Egypt, West Africa and South America.

The initial success of Lifan revolved around small engine manufacturing, used in the company’s motor bikes, scooters and generators Lifan was rewarded by the Chinese Government in 2004 by a proclamation that its 50-200cc engines no longer needed to be recertified. Lifan was and is the only domestic manufacturer that has been granted this free pass of sorts.

Lifan’s reputation for Motor Bikes was hard earned being a relative newcomer in the market but was rewarded with China Top Brand status as being ranked the 6^th most important automotive manufacturer in January of 2006, the same month the company’s first notable car, the 502, went into production. Lifan has achieved what many have said to be impossible by doing the impossible, importing Chinese Developed, Chinese Manufactured motor bikes into the deadlocked, over competitive market of Japan. Lifan further earned praise when in 2003 e-mark accreditation was granted allowing entry for its motor bikes to 18 EU countries without restriction.  

The more recent delve into automotive manufacturing and the pursuits of excellence in technological and practical development have made a strong case for future success. Lifan purchased the BMW Daimler Chrysler built plant and secured rights to use the engine previously found in the international market Mini Cooper. Although it has yet to see use in Lifan products, Lifan has continued to study and improve their own designs based on the technical aspects of the foreign developed technology.

 

At a time when most Chinese firms are using dated engine designs from Mitsubishi, Lifan recently released its own engine, a 1.8 litre unit with variable valve timing. Designed in house with assistance from Ricardo, this new power plant is regarded as being comparatively advanced as any European or Japanese counterpart in terms of performance, efficiency, and longevity.

 

With the completion of its 1.8 litre unit the company is pouring energy into new power plants ranging from 800cc to 2.4 litres for the three new vehicles planned for launch this year. The new models will complement the current range of compact cars already in production adding variety to the range. The new models will include a sub compact, family sized economy, and a city SUV.

 

Lifan has been keen to prove it is not a copy shop, setting up a team of over 200 engineers with experience from both at home and abroad. Technology found in Lifans range comes from the ground up starting with the development of its own unique platforms and engines taking the skills of well regarded international engineering firms where its own knowledge is not yet sufficient to ensure total product quality.

 

While Pricing may be in line or in some cases cheaper than domestic competitors, another asset that currently differentiates Lifan from other Chinese manufacturers is that Lifan has successfully passed Euro crash testing with 5 Star ratings as well as meeting the current highest level of Euro emissions. Completing the commitment to quality from the ground up the no compromise policy for safety, environmental and passenger, total quality with its excellent if yet developing dealer/distributor network and generous warranties completed by its class leading price and performance levels, Lifan is a sure case for success will be a name we will recognize in the future.