It has recently been revealed that the Dongfeng Panan Microcar Base, which is set to have an annual production capacity of 200,000 vehicles, is currently under construction in the Wuhan Zhuankou Development Zone. In addition, the long-awaited plan for Dongfeng Motor Group to integrate Hafei has resumed. According to industry insiders, Dongfeng, traditionally known for producing heavy trucks and mid-to-high-end cars, is now making a strong push into the mini-car market.
Pang Hai, deputy general manager of Dongfeng Luan, mentioned that the new microcar base will focus on developing and manufacturing models with engine displacements of 1.3 liters or less. The facility is expected to start operations by the end of this year, with an initial production capacity of 100,000 units. Full-scale production is anticipated in the first half of next year, with the target price for the vehicles set at around 450,000 yuan.
The rumors about Dongfeng’s potential acquisition of Hafei have been circulating for nearly a year, and the discussions were reportedly initiated after talks between Dongfeng Motor Group and the French PSA (Peugeot-Citroen) Group. Hafei is a key player in the northern Chinese mini-car market, with an annual production capacity exceeding 100,000 units.
In addition, it has been reported that Dongfeng and PSA are also planning to build another mini-vehicle production line in the region. As the two major shareholders of Shenlong Motor Company, they are considering introducing a PSA mini-vehicle production line, including various stylish compact Peugeot models. These vehicles are expected to be priced below 80,000 yuan.
Some analysts believe that if Dongfeng and PSA successfully acquire Hafei, the company could be integrated into the broader plans for the third plant of Shenlong. However, as of now, Dongfeng Motor Group's leadership has not officially commented on these speculations.
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