It has recently come to light that the Dongfeng Panan Microcar Base, a facility with an annual production capacity of 200,000 vehicles, is currently under construction in the Wuhan Zhuankou Development Zone. In addition, the long-anticipated plan for Dongfeng Motor Group to integrate Hafei has resumed. According to industry insiders, Dongfeng, traditionally known for manufacturing heavy trucks and mid-to-high-end passenger cars, is now aggressively expanding into the mini-car segment.
Pang Hai, deputy general manager of Dongfeng Luan, revealed that the new microcar base will focus on producing models with engine displacements of 1.3 liters or less. The facility is expected to begin operations by the end of this year, with an initial production capacity of 100,000 units. By the first half of next year, the output is anticipated to rise significantly. The estimated retail price for these vehicles is around 450,000 yuan.
The rumors surrounding Dongfeng’s potential acquisition of Hafei have been circulating for nearly a year, and the discussions were reportedly initiated after talks between Dongfeng and the French automaker PSA (Peugeot-Citroën). Hafei is a key player in China's northern mini-car market, with an annual production capacity exceeding 100,000 units.
Furthermore, it has been reported that Dongfeng and PSA are also planning to set up another mini-vehicle production line in the region, as the two major shareholders of Shenlong Motor Company. The third plant of Shenlong is currently in the negotiation phase and is expected to introduce a PSA mini-vehicle production line, including various stylish compact cars from the Peugeot range. The projected price for these models is expected to be below 80,000 yuan.
Some analysts believe that if the joint acquisition of Hafei by Dongfeng and PSA goes through successfully, it could be integrated into the broader plans for the third plant of Shenlong. However, the decision-makers at Dongfeng Motor Group have not officially commented on these speculations. As the automotive landscape continues to evolve, the moves by Dongfeng and PSA signal a growing interest in capturing a larger share of the affordable car market in China.
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