BAIC’s Big Move: BJ40 Extended-Range Model Shakes Up the Off-Road Market

The automotive industry is undergoing a profound transformation, with nearly every major player adapting to new trends and challenges. As one of the veteran enterprises in China’s automotive market, Beijing Automotive Industry Holding has remained relatively quiet in recent years. However, in a significant shift, the company has started making waves, especially with its strategic moves toward independent branding and embracing new technologies such as extended-range vehicles.

The company’s Beijing Off-road brand has been a cornerstone of its success, known for its rugged off-road vehicles. On April 7, the Beijing Off-road BJ40 extended-range model was officially unveiled, marking a key milestone in the company’s efforts to revitalize its brand and meet the growing demand for eco-friendly alternatives. The BJ40 extended-range is priced starting at 150,000 yuan, signaling BAIC’s commitment to compete in this increasingly popular segment.

The extended-range vehicle category is particularly beneficial for off-road enthusiasts who need a vehicle capable of long journeys without the worry of constantly refueling, while also offering the benefit of lower running costs in urban environments. The BJ40 extended-range is designed to provide up to a total range of 1,200 kilometers when both the fuel tank and the electric charge are fully utilized. This model is equipped with the same extended-range system and technical support as the popular Xiangjie model, which has already shown success in the market.

In terms of pricing, BAIC has strategically positioned the BJ40 at an attractive price point. The standard version starts at 179,800 yuan, and the more advanced version is priced at 199,800 yuan. After applying national trade-in and replacement subsidies, the price drops to a minimum of 154,800 yuan, which is about 70,000 yuan lower than expected and roughly 80,000 yuan cheaper than the Fangcheng Leopard 5. This pricing strategy has paid off, as within just an hour of the model’s launch, the vehicle received more than 3,000 orders, reflecting strong demand for this niche product.

The launch of the BJ40 extended-range model is not just about introducing a new vehicle; it’s a part of a broader strategy by BAIC to reinvent itself in a competitive and ever-evolving market. The company has experienced challenges in recent years, particularly with the declining profits from its joint ventures, such as Beijing Benz and Beijing Hyundai. The financial contributions from these ventures, especially from Beijing Benz, had once accounted for a significant portion of the company’s profits. However, as the market shifts toward new energy vehicles, BAIC is feeling the pressure to innovate and expand beyond traditional fuel-powered models.

In response to these challenges, BAIC has undergone significant organizational changes under the leadership of Zhang Jianyong, the newly appointed chairman. These reforms are aimed at strengthening the BAIC brand, focusing on the “renewal and upward movement” of the brand within the next three years, with a long-term goal of positioning BAIC as a leader in China’s automotive industry. As part of these efforts, BAIC has also seen a reshuffling of its team, bringing in younger and more professional talent to drive the company’s transformation.

The company’s electric vehicle division has also been rebranded. BAIC Blue Valley, the company’s new energy vehicle arm, has been renamed BAIC Aito New Energy Vehicle Co., Ltd. This rebranding reflects a shift in focus towards range-extended and hybrid vehicles, and BAIC is planning to launch new electric and hybrid models under the Aito brand. The company has also reduced its offering of pure electric vehicles while increasing the focus on range-extended models, which have proven to be a popular choice for consumers.

Looking ahead, BAIC is setting ambitious goals. The company plans to achieve total vehicle sales of more than 3 million units by 2027, with 2 million units coming from its independent brands and more than 50% of its sales coming from new energy vehicles. This strategy is part of BAIC’s “Three-Year Leap” plan, which aims to position the company as a leader in both the new energy vehicle market and among independent automotive brands in China.

The debut of the BJ40 extended-range model marks an exciting step forward for BAIC, but the company is aware that this is only the beginning. To remain competitive in an industry undergoing such rapid change, BAIC will need to continue to innovate and introduce more market-ready vehicles that align with consumer preferences and the evolving regulatory landscape.