The recent changes in leadership at Beijing Benz suggest that BAIC is actively pursuing strategic realignment. There are clear signs that the company’s own brands are entering a critical phase of development. A source from Beijing Automotive Holding revealed to the *First Financial Daily* that the Beijing Automotive Research Institute, which oversees the company's independent R&D efforts, is working around the clock to prepare a concept car for the Beijing Auto Show this April. “In addition, it’s possible that BAIC may also showcase other brand-related achievements at the event,” the source added. According to a source close to Beijing Auto Holding, the company’s major strategic shift will also be reflected in its national layout. “The southern manufacturing base in Zhuzhou, Hunan, is an important step forward, and it also plays a key role in shaping BAIC’s future R&D strategy,” he said. The Beijing Automotive Research Institute, located in Yizhuang, Beijing, has been operational for less than a year and is currently focused on building a dedicated R&D base. According to a senior official, “The main goal of the institute is to develop vehicles under BAIC’s own brand.” The institute is also preparing to unveil new vehicle technologies at the upcoming auto show. An insider at Beiqi Holdings mentioned that in the future, Beijing Auto plans to launch a range of models, including cars, off-road vehicles, and high-end SUVs under its own brand. The recent personnel adjustments at Beijing High-Tech Holding Co., Ltd., involving senior staff from Beijing Benz, were described as part of the group’s broader strategy. “Tong Zhiyuan remains the deputy general manager of BAIC Holdings and director of Beijing Benz Dyke, continuing to leverage his technological expertise in R&D and brand-building.” It appears that BAIC is making significant preparations—both in terms of technology and infrastructure—for the development of its own brand vehicles. In 2007, BAIC ranked fifth in the industry, behind FAW, SAIC, Dongfeng, and Changan, with GAC gaining ground. As a top-tier local automaker, Beiqi lacked its own brand, which limited its growth potential. By contrast, SAIC and Changan had already launched products, while GAC showcased a concept car at the Guangzhou Auto Show. The "Beijing brand," which was introduced 30 years ago by Zhu De, has long faded from public memory. This year marks the 30th anniversary of its naming, and the debut of the Beijing brand’s concept car at the auto show could signal a new chapter for the city’s own-brand automotive ambitions. However, the research and development process is not without challenges. According to an employee at the Beijing Automotive Research Institute, time is pressing. “With less than three months until the auto show, we’re under a lot of pressure,” they said. They also noted that while design capabilities are strong, manufacturing limitations and material quality can hinder progress. “Sometimes what we design cannot be produced due to production constraints,” they explained. Foton Motors, another key player under BAIC, is also focusing on independent R&D. General Manager Wang Jinyu stated that Foton aims to lead in all segments of commercial vehicles. He expressed aspirations to eventually enter the passenger car market. However, according to insiders, Foton’s own-brand sedan is still in the planning stage and won’t debut at this year’s Beijing Auto Show. Instead, the Foton Midi—a multi-functional vehicle—is seen as a test entry into the passenger car market. Wang Jinyu emphasized that Foton will only enter the car market when conditions are right. “Once our commercial vehicles reach the top of the industry, and profits hit 3-4 billion yuan, we’ll have the resources to develop passenger cars,” he said. For now, Foton’s car plan remains in the future, but the Beijing brand still holds promise for a resurgence. Expanding R&D capacity beyond Beijing is another key move. Industry experts note that Beijing’s production capacity is limited, prompting BAIC to look elsewhere. The construction of a southern manufacturing base in Zhuzhou, Hunan, is part of this strategy. “By expanding to other cities, BAIC can reduce costs and improve efficiency,” one analyst said. Foton Motor has already begun implementing a nationwide expansion strategy, with production facilities across multiple provinces. As BAIC continues to push forward, the path to building a strong domestic brand remains challenging—but also promising.

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