In the automotive industry, the concept of "Blue Ocean" remains relevant, and commercial vehicle companies that are transitioning into sedan production must carefully choose their path before entering a highly competitive market. The trend of do-it-yourself repairs is still on the rise, and several domestic commercial vehicle manufacturers have started to explore opportunities in the passenger car market. Among them, JAC, known as the leader in the bus industry, Foton, which dominates the light truck segment, Jiangling, successful in the MPV market, and Great Wall, the top name in economical SUVs, have all recognized that their traditional markets offer limited growth potential. To expand strategically, these long-established commercial vehicle companies are redefining their future by stepping into the passenger car sector. Despite the fierce competition and price wars in the car market, they remain confident, believing there is still room for profit. In their view, commercial vehicles are tools of production, with buyers focusing on cost-effectiveness and investment returns—limited growth potential. Cars, on the other hand, are consumer goods with higher margins and greater profitability. JAC recently received approval from the National Development and Reform Commission for its sedan project. With strengths in heavy trucks, MPVs, and chassis, the company has spent years preparing for this move. Its new car base in Hefei has an annual capacity of 300,000 units, and it will launch a mid-range sedan as its entry point. Importantly, it will use a new brand instead of the JAC name used in commercial vehicles. Similarly, Beiqi Foton, China’s leading commercial vehicle manufacturer, has been exploring car development for several years. It plans to launch an economical car priced below 70,000 yuan, aiming to become a global player. Jiangling has already finalized its sedan project, with a production base in Nanchang targeting 100,000 units annually. Great Wall Motors has also set up a passenger car production base with a capacity of 200,000 units, planning to introduce two models by year-end. While entering the car market may seem like a logical step, the challenges are significant. The auto industry is overcapacity, and the state has imposed strict regulations on cross-product projects, requiring independent brands and R&D capabilities. Companies cannot rely on joint ventures at this stage, and building consumer trust in their new brands is a major hurdle. Some past attempts have failed, such as Brilliance, which struggled despite initial success. However, many companies remain determined to build their own brands. JAC, for example, has invested in an Italian design center, while Jiangling has had an R&D center since 1997. Industry experts warn that transitioning from commercial vehicles to cars is a “flesh transformation”—a tough and risky process. Without strong brand recognition, technology, or service, local companies may struggle to compete. Even with low prices, scaling up is difficult. Ying Jianren, chairman of Zotye Group, emphasizes the importance of the “Blue Ocean Strategy.” He believes that rather than fighting in the crowded “Red Sea” of existing markets, companies should create new opportunities. While the car market is saturated, there are still untapped niches where unique value can be delivered. According to recent data, only a few car models achieve high sales volumes, with most struggling to gain traction. This highlights the intense competition and the need for differentiation. Those who can offer something truly unique—whether through design, technology, or affordability—will stand out. In conclusion, while the “Blue Ocean” concept is still relevant, commercial vehicle companies entering the car market must choose their path wisely. Success depends not just on entering the market, but on creating real value for consumers.

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