JAC's commitment to independent brands has driven it to invest heavily in R&D technology. Zuo Yan'an deeply understands that if key technologies are controlled by foreign capital, the national brand will eventually lose its competitive edge and prestige. This belief has guided JAC’s long-term strategy of focusing on innovation and self-reliance.
In 2014, among the 15 major automobile groups in China, only Jianghuai Automobile maintained consistent profit growth. As the representative of the National People's Congress and chairman of JAC Group, Zuo Yan'an explained to the *Financial Times* that while many companies struggled with financial pressures, JAC remained focused on sustainable development. He emphasized that the company's strong performance in commercial vehicles and light trucks provided a solid foundation for future expansion.
According to Zuo Yan'an, JAC's product structure is unique, with a strong emphasis on commercial vehicles rather than passenger cars. The decline in passenger car prices in recent years can be attributed not only to market competition but also to rising raw material costs. However, JAC has managed to maintain profitability through efficient operations and cost control.
This year, JAC's truck output reached around 100,000 units, marking a significant increase compared to previous years. Despite the challenging market conditions, the company has maintained stable profits. Zuo Yan'an attributes this success to JAC's long-standing business philosophy of prioritizing quality and efficiency. By focusing on core strengths, JAC has been able to grow steadily even in a highly competitive environment.
Looking ahead, JAC has set its sights on the heavy truck market, an area where competition is fierce. With 18 heavy truck manufacturers in China, including industry giants like FAW, Dongfeng, and Sinotruk, the market is dominated by a few players. Foreign brands such as Renault, Isuzu, and General Motors are also making inroads. In response, JAC launched its new "Geerfa" heavy truck, aiming to carve out a niche in this crowded space.
Industry experts believe that the heavy truck market holds great potential and could lead to a reshuffling of the industry landscape. JAC, backed by its strong financial position and successful listed company status, is well-positioned to compete. As Zuo Yan'an stated, "As long as our main business performs well, financing is not a problem." This confidence stems from JAC's proven track record in commercial vehicles and its ability to adapt to market changes.
In addition to trucks, JAC's Ruifeng Commercial Vehicles have also shown strong growth, with sales reaching about 34,000 units this year. Although the segment faced challenges at the beginning of the year, cost reduction efforts exceeded price cuts, ensuring that per-unit profits remained stable. Overall, total profits increased by approximately 10,000 units, demonstrating JAC's resilience and strategic focus.
Today, JAC fosters a culture of respect for independent brands, from top management to frontline employees. Zuo Yan'an emphasizes the importance of self-reliance in R&D, stating that the company regularly collaborates with Austrian firms via the internet to enhance its technical capabilities. While developing independently remains difficult, JAC has the resources and determination to succeed.
The new "Geerfa" is a prime example of JAC's commitment to innovation. It represents a fully indigenous product with its own brand identity. From commercial vehicles to passenger cars, JAC has consistently invested in research and development, building a strong foundation through talent cultivation and process standardization.
Zuo Yan'an advocates the idea of "integrating global resources to build a world-class car," combining international experience with local innovation. This approach has helped JAC introduce cutting-edge technologies while maintaining its distinct brand identity.
The launch of the new "Geerfa" has set a new benchmark in the Chinese heavy truck market, breaking away from the long-standing reliance on foreign platforms like Steyr. It marks a significant step forward in JAC's journey toward technological independence.
Zuo Yan'an, Chairman of Anhui Jianghuai Automobile Group Co., Ltd., is a prominent figure in China's automotive industry. He has served in various leadership roles, including chief economist and director of Hefei Jianghuai Automobile Manufacturing Plant. Currently, he also holds positions as vice chairman of the Anhui Society of Automotive Engineers and adjunct professor at Tianjin University. His contributions have earned him numerous honors, including the title of "National Model Worker."
JAC's journey reflects a broader trend in China's industrial evolution — the shift from imitation to innovation. As the company continues to invest in R&D and expand into new markets, it remains committed to building a strong, independent brand that can compete globally.
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