Are Hafei feeling the strain? Probably not.
Hafei Automobiles were absent from this years Shanghai Auto Show, which has lead many people to wonder if Hafei are in a healthy economic position.
As already mentioned on CCT, the Shanghai Auto Show attracted 600,000 visitors, in which a small automaker like Lifan pulled in business of over 170 million USD during the show, which goes to show that with the right products, you can pull in the big crowds, and the big dollars.
Hafei, like Lifan, is a small regional car maker based in the North East of China, Lifan on the other hand is based in South West China. Lifan is a privately owned business, Hafei on the other hand is a subsidery of Harbin Aircraft Manufacturing Corporation, which in turn is a subsidery of China Aviation Industry Corporation II, which was a split off group from China Aviation Industry Corporation. To say that Hafei’s parent company organisation is complicated would be a major understatement. Lifan has surged ahead, forming partnerships with Ricardo, and AIG to boost technology and investment, privately owned companies must do this if they are to survive. Hafei on the other hand seems to have allowed its car making enterprise to splutter over the past year, we havent seen any new cars from them, or even mock ups of cars. The Hafei line up is looking rather tired now, they did have an early lead with the Mitsubishi Mirage (Durango) which they rebranded as their own, they also produced the Hafei Lobo which looked odd, but later face lifted models gave it a rounded front end which was rather pleasing for a cheap car. Not being a privately owned company, they don’t have to rely on the latest car designs or the latest technology to increase sales, when they hit upon bad tames they can turn towards one of their several parent companies for a hand out.
In recent years, Hafei Autos has been linked to a Dongfeng buy out, or a ‘merger of assets’ as they are known in China, but aside from the usual rumours, nothing has solid has been cemented between the two.
One area where Hafei seems to be doing well is the mian bao che segment. These little vans are used all over China to carry people, goods, and often livestock. The small 9 seaters are being actively pushed into rural communites by the central government, the government is hoping that farming communities will pick up on the vans and trade in their tractors and motorbikes for them, which will give the hammered automotive market a much needed boost in the coming months. Hafei make a great range of mian bao che‘s, in various different seating configurations, or without seats for the discerning farmer that needs more space than he does seats.
Hafei then may well be well positioned to take advantage of the generous subsidies offered to farmers to take up mian bao che‘s, even if the production, and sale of these tiny vans come at the expense of automotive production. As Hafei is a state owned entity, they are well prepared to take advantage of any future policies, where as a privately owned company like Lifan will struggle to get products to the market in time to take the greatest advantage of any policies. Lifan are close to producing their own minivans, but is it too little too late? Hafei seems to have this area sewn up quite well.
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It’s been a while since we’ve seen anything as exciting as the Fantasy concept, or even an updated Saibao. But Hafei products are fodder for the EV crowd. Tianjin Qingyuan is fitting Hafei’s mini pickup truck shells with electric powertrains and reports are that Miles Automotive will launch electric, and possibly dual fuel, Saibaos in the U.S. in early 2010. But seeing is believing….
What about the Pinifarina-designed Luzun Overlord van? Has anyone heard if that has made it to market yet, or maybe even to Europe?
Hafei workers understand quality, and now all Hafei needs is a private investor with lots of capital, and creative, not old school state bureaucrat, management.
Correction: Hafei WAS at the Auto Shanghai 2009. They featured an electric version of the Saibao 3 which I have pictures of, so I am absolutely sure of this. I think they were located next to Geely. They did have a smaller booth, and the Saibao 5 was missing, but they were definitely there.
I’ve visited the Hafei factory in Harbin. They have an excellent, very modern manufacturing facility. Hafei has invested in modern vehicle platforms by Italian automotive designers and modern equipment to build great cars.
My question about Hafei has always been “Why is this factory located in Harbin?” With a population of less than 40 Million, a location in the northeast corner of China farthest away from the heart of China and the absence of a sea port they completely lack any strategic advantage based on their location. The sagging economy in HeiLongJiang and JiLin cannot support Hafei so they are forced to manufacture and sell cars for less than their competitors to make up for the added shipping expense they must subsidize.
Harbin was a city founded by the Russians 100 years in their expansion westward. Geographically its strategic advantage has always been its proximity with Russia but they are not focusing on this market today.
Hafei’s bread and butter is the microvan MianBaoChe market. This market is dominated by three players: Hafei, Chana and DongFeng. A ‘merger’ with DongFeng would make strategic sense, but the culture clash between Harbin and Wuhan cultures would undoubtedly make such a partnership incredibly difficult.
Hafei was in the news back in March when a story surfaced that its parent, AVIC was planning to merge Hafei with its other auto subsidiary Changhe, as well as engine maker Harbin Dongan.
http://chinabizgov.blogspot.com/2009/03/first-auto-merger-of-2009-hafei-and.html
Like the previous poster, I seem to recall seeing Hafei at the Shanghai Show, though I didn’t get any pictures.
Actually the engine maker Dong’an, became Hafei’s parent (100% stake) back in early 2005. And Dong’an’s parent at that time was AVIC II. But with the merger of Chang’he and Hafei under AVIC, and AVIC II gone away, I don’t know where that leaves Dong’an. It’s a bit confusing to say the least.