What is the localization rate of joint venture vehicles?
2 Answers
The localization rate of joint venture vehicles is generally around 90%. Investment methods: The Chinese side provides land and factory usage rights, capital; foreign investors contribute brands, technologies, capital, talents, etc. Joint venture vehicles are products of such cooperation. Foreign parties provide technology, talents, brands for domestic assembly, but core technologies remain controlled by foreign entities. Joint venture vehicle brands: Joint venture brands include Citroën, Peugeot, Škoda, Mazda, Beijing Jeep, etc. Joint venture brands under FAW Group include FAW-Volkswagen, FAW-Audi, FAW-Mazda (all produced in Changchun, Jilin), FAW-Toyota (produced in Changchun Jilin, Tianjin, and Chengdu Sichuan). Joint venture brands under Dongfeng Motor Group include Dongfeng Citroën, Dongfeng Peugeot, Dongfeng Honda (all produced in Wuhan, Hubei), Dongfeng Nissan (produced in Guangzhou, Guangdong), Dongfeng Yueda Kia (produced in Yancheng, Jiangsu), Dongfeng Zhengzhou Nissan (produced in Zhengzhou, Henan), Dongfeng Yulon (produced in Hangzhou, Zhejiang).
Regarding the localization rate of joint venture vehicles, I'd like to share some insights. As an ordinary consumer who frequently follows the automotive market, I've learned from my car-buying experience that the localization rate of joint venture vehicles typically ranges between 70% to 90%, depending on different brands and models. For instance, vehicles produced in China by major brands like Volkswagen and Toyota now achieve localization rates exceeding 80%, meaning most components are locally manufactured, resulting in more affordable prices and convenient maintenance. I recall that localization rates might have been around 50% a few years ago, but with China's policies promoting domestic manufacturing, many new vehicles now incorporate more locally sourced parts. This directly impacts our purchasing costs and after-sales services, with maintenance expenses becoming 20% to 30% cheaper. Overall, higher localization rates benefit consumers by lowering barriers to entry, but it's also important to check the localization rate indicators for different models of the brand before purchasing. Consulting official website data is a reliable approach when buying a car.
