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In response to the shifting dynamics in the global automotive industry, international giants have scaled back their foreign investments and increased their focus on the Chinese market. Meanwhile, domestic automakers are also taking proactive steps to adapt. Companies such as Geely, Hafei-Changhe, and Skylark have initiated internal restructuring efforts. The auto market has been experiencing a downturn, pushing many small and medium-sized enterprises (SMEs) toward consolidation.
While Geely, as a leading private automaker, has managed to maintain a relatively stable position, even it has not been immune to the challenges. On June 28th, Geely announced an initiative to bring back online foreclosed assets for a photography competition tied to its summer camp slogan contest, aiming to win a grand prize. Additionally, Jiangnan Fengguang has invited its first batch of car dealers, signaling a move toward integration. Several sales companies, including those of Geely and Maple, have merged, with remaining staff being restructured or "divided."
Industry insiders suggest that this move is Geely’s most significant response to the broader market slump and the ongoing price war. According to Liu Jianquan, head of public relations at Geely Automobile Group, the integration is merely an internal adjustment, focusing on merging personnel from the two original sales companies. Although Liu Jianping emphasized that there are no major changes in the sales network and that Geely and Maple will continue to operate independently at the retail level, analysts believe the real goal may be to improve efficiency by reducing staff.
Hafei and Changhe’s reorganization represents a horizontal alliance aimed at boosting competitiveness through scale expansion. As one insider noted, external pressures have forced two previously independent entities into a unified structure. Both companies belong to AVIC II and share similar product lines, based on the Suzuki 4301 chassis, and use common engines like the Dongan 462 and 465 models. This collaboration allows them to cut costs in procurement and marketing while sharing R&D resources.
On the other hand, Guizhou Skylark faces a more difficult situation. During the Beijing International Auto Show, Fuji Heavy Industries unexpectedly announced the abandonment of the "Lark" brand, leaving Guizhou Skylark in a precarious position. With production capacity below 20,000 units annually and actual output barely reaching thousands, the company is struggling to survive. The original Dongjia Guihang Group had already faced financial difficulties, making Skylark’s situation even more dire.
Despite these challenges, a rational market can still create viable business opportunities. Properly managed integration offers SMEs a chance to survive and thrive. The current wave of consolidation marks just the beginning of a more rational and sustainable development phase for China's automotive industry. (Wang Fan)
October 02, 2025