Giant Motors Latin America, where Carlos Slim is the majority shareholder and his commitment to the automotive industry, Since 2016 a space has been opened in the national market with the JAC brand, which after the slowdown in sales due to Covid-19, seeks its way to grow its participation and in the process democratizes electric vehicles in Mexico.
Elías Massri, president of the company, Account that since April of last year they began to make very important decisions related to platforms that we had already developed, such as the issue of the launches of electric vehicles at the end of 2019, as well as their website for the sale of their models.
However, it specifies that For JAC, the issue of electric cars is not only a focus, but a reality, since they were the best-selling brand in 2020 in the Republic of Mexico, with practically 60% of the market, accounting for the units they make with Moldex, an association it has with Grupo Bimbo.
“The electric car should be an alternative to buying a vehicle, no matter who you are or what you are looking for, there should always be an alternative and I think that little by little the costs, autonomy is getting closer … cI consider that this democratization of electric vehicles in the country we have how and we have the products to do it”, He affirms in an interview with Forbes Mexico.
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And, he explains, this is a long-term commitment in the country, since they are convinced that Mexico is a country for electric vehicles and the future of the industry; It also considers that due to the autonomy they offer, the type of vehicles, JAC allows the market they are attacking to electrify and popularize an electric vehicle.
Where its strategy is based on the “Twin Car Concept”, That is, to have twin combustion and electric vehicles, which allows clarity in costs, an equal experience when going to the agency, unlike what is handled in the market and focuses on only premium brands.
“Vehicles have accidents, they collide, they break down, common things and the parts are common, costs are common, insurance is common, all that makes the experience easier and closer… If we see a growing interest, there was a detonation in the concern… especially in young adults who are more involved ”, he highlights.
Covid-19 slows sales, but it was not a brake
Massri comments that Since this started the pandemic, they had a lot of information about what was happening in other parts of the world, so the actions that were taken during this situation knew that they were not going to be short-term and that the situation would take time.
“Since April, we began to make very important decisions related to platforms that we had already developed, such as the issue of the launches of electric vehicles at the end of 2019, such as jac.mx, which was the digital platform that we had planned to be the first. company to enter the digital ecosystem and you can buy your car 100% remotely “.
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In this sense, it exposes whate sought to take advantage of the digital platform to accelerate processes, have a closenessThere is close communication with all distributors, supporting people in their health, but also not reducing salaries, personnel and investing in the strategic.
Despite this, the manager indicates that registered a decrease in the volume of units by 9% throughout the year, However, they did not delay any of the launches they had planned, which helped them to make the average ticket of the brand higher and the sales were similar to last year.
Elías Massri highlighted that this strategy led them to gain an important position in the Mexican market, managing to recover the volume in October 2020, in fact, the last quarter registered a growth of 30% compared to the same months of 2019, giving them a platform very important for the 2021 launches.
While last April, JAC Mexico increased its sales in the national territory by 180% compared to the same month last year; where the J7 liftback continues to lead the brand’s sales, followed by the Frison T8 pickup and the Sei3 Pro SUV, corresponding to the new facelift of the model.
Production adjustments, semiconductor crisis and success
The president of the company says that due to the health crisis they had to stop for a couple of months in accordance with the provisions of the authorities, but once they returned the production programs are not given from one month to another, since they even contemplate launches of more than one year, where you have the receipt of parts from different suppliers in the world in 3 to 6 months.
Despite this, yesu plant had the ability and flexibility to adjust to market needs With the inventory they had, the existing programs and they decided to move forward, respecting the rules, closing the production of certain models and focusing on those that were essential, in addition to that financially they had the capacity to endure it.
“This issue of semiconductors, containers, freight, transportation, was not an issue during 2020, but at the beginning of 2021 … the company made the decision to make the necessary investments to maintain the supply that is required for the demand, “he says.
For Elías Massri, the success they have had is the result of the “5 stamps”, where the first is the “made in Mexico”, which has helped them throughout the process, from regionalization, tropicalization, adapting products before their own market launches, in addition to meeting demand.
The second is their guarantee, which is not only a marketing issue, but a reflection of the quality of their products and helps them gain confidence in the consumer; Other than the connectivity and equipment issue, given that none of their cars is “austere” and they have the largest amount of equipment in their segment.
In addition to the issue of security, where their models have the highest level of certification; as well as the quantity and quality of distributors nationwide, which allows them to provide service in all states of Mexico.
“For JAC, Mexico is one of the most important countries in terms of its export as a brand, for Giant Motors Mexico is not only the most important country, but to which we are dedicated… that is something that commits us, 100% of the products we offer are assembled in Mexico ”.
* This note was originally published on May 11, 2021.
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