GAC Motor's Nigerian SKD helps in global expansion

GAC Motor, a subsidiary of Guangzhou Automobile Group, has finished the parts assembly and testing of its first eight GS4 vehicles for its semi knocked-down (SKD) project in Nigeria, a milestone for its global expansion following substantial sales growth.

The SKD project was realized in early October through CIG Motors, distributor of GAC Motor in Nigeria.

The successful launch of the SKD project marks the first time Chinese vehicles have had parts assembled in Nigeria, promoting China-Africa industrial cooperation. The project sets a precedent for Chinese vehicles in the Nigerian market, according to the company.

The SKD factory was built in Nigeria for the optimization of the supply chain, shortening production time and reducing costs. Standard operating procedures are utilized to guarantee product consistency while GAC Motor provides field guidance for quality control and technical support.

Kanayo lwuchukwu, assistant director of Nigeria Industry Association, said that the launching of the SKD project not only brings advanced technology to the Nigerian automobile market but also increases local job opportunities.

"We will give our full support to this win-win project," Kanayo said.

The project marks another step GAC Motor is taking toward exploring the global market, which currently has showrooms in 15 countries, mostly in the Middle East, Southeast Asia and South America.

By the end of 2016, GAC Motor will open three showrooms in Paraguay, Jordan and Nigeria and sign an agreement with a Myanmar dealer, according to the company.

The company opened its second showroom in Nigeria in April, after it had already claimed a 34-percent market share for sedans and 22 percent for SUVs in Nigeria.

GAC Motor organized a series of global marketing events to promote its brand in the global market, including the first test driving event at the Bahrain International Circuit, hosted by the company's only certified distributor in the Kingdom of Bahrain, Tas'heelat Automotive Company.

The company also sponsored 'the Oscars of Africa', Africa Magic Viewers' Choice Awards (AMVCA) in Eko Hotel Convention Center.

Both the emerging market and the more mature markets of Europe and North America are of vital importance to the company's strategic objective of becoming internationalized, according to Yu Jun, general manager of GAC Motor.

In the emerging market, GAC Motor is focused on brand publicity, service and support and talent development. The SKD and completely knocked-down markets are building the foundation for a global supply chain and production system. In the newly released 2016 Chinese New Vehicle Initial Quality Study Report from J.D. Power Asia Pacific, GAC Motor has been the number-one Chinese car brand for four consecutive years and has achieved a historic breakthrough for all Chinese brands by ranking fifth in the automobile industry.

Meanwhile, the company's GS4 claimed victory among Chinese brands with a score of 93 in the compact SUV segment.

Over the past six years, GAC Motor has made improvements to its product quality, productivity and brand influence, and demonstrated the rise of Chinese manufacturing.

The GS8, a new SUV variety, will be released in late October at the Hangzhou International Expo Center, the main venue of the G20 summit, to further demonstrate its quality pursuit to global audiences.

qiuquanlin@chinadaily.com.cn