Jianghuai Automobile's production and sales target for 2021 is approximately 500,000 vehicles.

    On December 23 and 24, Jianghuai Automobile successively issued announcements to announce the 2021 production and sales plan and the progress of the transfer of some assets of the second passenger car plant.

    Jianghuai Automobile said that according to the company's preliminary calculations, it will produce and sell about 500,000 vehicles and chassis in 2021. However, it called the production and sales plan a preliminary goal for the management, and the final goal still needs to be approved by the company's board of directors.

    A few days ago, Jianghuai Automobile released production and sales data. November sales were 41,100 vehicles, an increase of 23.67% over the same period last year; cumulative sales from January to November were 416,700 vehicles, an increase of 7.74% year-on-year.

    Jianghuai Automobile issued an announcement in early November, stating that it intends to transfer some of the assets of the second passenger car plant, with an estimated asset value of 716 million yuan. It said that the transfer of assets is mainly to revitalize idle production capacity and realize the realization of stock assets.

    On December 24, Jianghuai Automobile stated that after receiving the Notice of Bidding Results from Anhui Property Rights Exchange Co., Ltd., Volkswagen (Anhui) Co., Ltd. (hereinafter referred to as "Volkswagen Anhui") became the transferee, and the transaction price was 77006.67. Ten thousand yuan.

    In fact, as early as March last year, it was reported on the Internet that Jianghuai Automobile intended to transfer the second passenger car plant to Jianghuai Volkswagen (Volkswagen Anhui). Earlier, Caijing.com Auto had asked whether Jianghuai had any intended purchasers, and the other party stated that "the specific announcement shall prevail."

    Bai Yiyang, Research Department of CMB International, said that internal transactions within the group will help improve overall capacity utilization.

    As of the end of 2019, the design capacity of JAC passenger vehicles was 450,000, and the production capacity during the reporting period was 168,600, and the capacity utilization rate was only 37.47%. Jianghuai Automobile emphasized that the disposal of assets will not affect the company's normal production and operation. If the transaction is successfully implemented, it will have a positive impact on the company's performance.

    At present, the Volkswagen Anhui project has officially landed. Jianghuai Automobile Chairman Amgen said that Volkswagen (Anhui) will invest 20 billion yuan to build a new energy vehicle production base with an annual production capacity of 350,000 vehicles. By 2023, a number of new models based on the MEB platform will be put into production.