Lifan Thailand

Demand for Lifan’s cars in Ethiopia has been unprecedented according to the Chongqing based company. One year ago Lifan opened its first car factory, and noticably the first car factory ever, in Addis Aba the capital of Ethiopia, but demand for Lifan’s economy models has been much higher than expected and has resulted in a shortage of products at the local dealerships.

In February 2010 the Lifan 520 became the first car to be built in Ethiopia and Lifan actually manages its own dealership networks directly in the country, but the demand for the 520 has been much higher than expected. The 520 sells for between 15,000 and 20,000USD (100,000 to 130,000rmb) in Ethiopia, whilst in China the same model sells for just 50,000 to 60,000rmb, despite the price difference it appears that the level of development in Ethiopia in the past decade has been very strong, as the purchasing power of locals appears to very strong.

Lifan are currently scouting locations for a new factory to keep up with the demand for their cars, they plan to introduce other models into Ethiopia including the 620 and also the Lifan 320 mini car, their new mini van range is also expected to be introduced as well. Lifan have invested more than 10 million USD into the factory, but by 2012 that investment is going to be increased to 30 million RMB, they are also planning to increase the service level and number of dealerships around Ethiopia as well.

Current capacity at the existing factory is only 3,000 units per year, but this is going to be expanded to tens of thousands of cars per year, Lifan are currently in talks with the local governments, it appears that Lifan has total support at local and national level, especially as over 90% of the workers in the local factories and dealerships are locals that Lifan have trained up themselves.