Essay About Passenger Vehicles And Chinese Vehicle Industry

Dongfeng Motor Group Co Ltd Business Details
DONGFENG MOTOR GROUP CO LTDConsumer Discretionary Sector, Automobiles IndustryHong Kong Stock Exchange489.HKStudent Research by Random WalkGroup Members:FENG, Tingshuai (1155069177)SUN, Shangyun (1155066436)WANG, Xiaolu (1155067876)YANG, Zerui (1155067870)YE, Xingming (1155067871)ZHANG, Yue (1155066411)27 October 2015[pic 1]RecommendationBUYTarget Price (HKD)15.10Current Price (HKD)11.1052WK High (HKD)14.4852WK Low (HKD)7.02Market Cap (B HKD)95.64P/E Ratio6.99Business DescriptionDongfeng Motor Group (DFG) is one of the leadingmanufacturers in Chinese vehicle industry. DFG currently invests in 23 subsidiaries and joint-venture entities, and its core business fully covers commercial vehicles, passenger vehicles incorporating basic types, MPV, SUVs, and auto parts such as engines.Commercial Vehicles The commercial vehicle (CV) segment incorporates a full range of product portfolios of Trucks, buses, special and military vehicles. As of 2015, DFG produces 42 kinds of basic series of commercial vehicles, including 35 truck series and 7 bus series. Facing the dramatic shrink of CV market, DFG still outperforms peers and attains 10.4% market share in 2014. Passenger Vehicles Passenger vehicles (PVs) including basic Units Produced/Sold and Market Share in 2014 passenger cars, MPVs, SUVs, are mostly manufactured by JVs of DFG. Currently 51 passenger car model series, including 31 Sedans, 7 MPVs and 13 SUVs, are under production. Passenger vehicles segment serves as a dominating profit generator with contribution amounting to 45.3% at year-end 2014, 11.9% of overall market share.[pic 2]Company StrategyDFG currently maintains its domestic market share and exploits overseas markets via cooperation with JVs and associates, and shifts to passenger vehicles as new driving force. It also begins to put strategic emphasis on new energy and clean production technologies.