It was recently revealed by the Wuhan Zhuankou Development Zone that Dongfeng Panan Microcar Base, a facility with an annual production capacity of 200,000 vehicles, is currently under construction. In addition, the long-anticipated plan for Dongfeng to integrate Hafei has resumed. According to industry insiders, Dongfeng Motor Group, traditionally known for manufacturing heavy trucks and mid-to-high-end passenger cars, is now making a strong push into the mini-car market. Pang Hai, deputy general manager of Dongfeng Luan, stated that the new microcar base will focus on producing models with engine displacements of 1.3 liters or less. The facility is expected to begin operations by the end of this year, with an initial production capacity of 100,000 units. By the first half of next year, the output is expected to increase further. The targeted selling price for these models is around 450,000 yuan. The rumors about Dongfeng’s potential acquisition of Hafei have been circulating for nearly a year, and the move was reportedly initiated after discussions between Dongfeng and the French PSA (Peugeot-Citroen) Group. Hafei is a key player in the northern Chinese mini-car market, with an annual production capacity exceeding 100,000 units. In addition, it has been reported that Dongfeng and PSA are planning to establish another mini-vehicle production line at the Shenlong Motor Company, where they are the two major shareholders. The third plant of Shenlong is set to begin negotiations soon, with plans to introduce a PSA mini-vehicle production line, including various stylish compact models from the Peugeot range. These vehicles are expected to be priced below 80,000 yuan. Some analysts believe that if Dongfeng and PSA successfully acquire Hafei, it could be integrated into the overall development plan for the third factory of Shenlong. However, as of now, Dongfeng Motor Group has not officially commented on these speculations.

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