The Cross-Border Car Manufacturing Venture of “Aluminum King” Weiqiao Group

Recently, Ruishi Auto, a new brand under Beijing Automobile Manufacturing Plant of Weiqiao Pioneering Group (hereinafter referred to as "Weiqiao"), launched its first model—the Ruishi M8.

This marks another key move by Weiqiao in the automotive sector, following its investments in leading car manufacturers like Lingtu and Beijing Automotive Manufacturing Factory, as well as collaborations with new energy vehicle companies to establish brands such as Jizhi and the 212 off-road vehicle.

As a traditional manufacturing giant that grew from the textile and aluminum industries, why did Weiqiao decisively venture into the fiercely competitive automotive sector? What opportunities and challenges will Weiqiao face in its cross-industry foray into car manufacturing?

（一）

The development history of Weiqiao can be described as a cross-border transformation saga. Starting from the textile industry, it has built a dual core business model encompassing self-owned power generation and aluminum production. Over the past decades, Weiqiao's business expansion has consistently followed the logic of industrial synergy.

In 1951, Weiqiao's predecessor, Weiqiao Oil and Cotton Factory (formerly known as Weiqiao Flower Mill), was established. By 2003, Weiqiao Textile had become the world's largest cotton textile enterprise. As the demand for electricity in the textile industry continued to rise, Weiqiao began building its own power plant. Later, due to surplus electricity, it ventured into the aluminum electrolysis industry. In 2014, Weiqiao Aluminum Electric became the world's largest aluminum product manufacturer.

Behind WeiQiao's large-scale foray into the automotive industry over the past two years lies the reality that its two pillar industries—textiles and electrolytic aluminum—are both facing growth bottlenecks and profitability pressures.

In 2018, Zhang Bo, the son of Wei Qiao founder Zhang Shiping, assumed the role of the new chairman of Wei Qiao. At that time, Wei Qiao was facing unprecedented challenges. In 2017, four ministries including the National Development and Reform Commission issued a document to regulate non-compliant projects in the aluminum electrolysis industry, strictly controlling new capacity additions to prevent uncontrolled expansion. In August of that year, Wei Qiao was identified with 2.68 million tons of non-compliant capacity, and five recently completed projects were halted—nearly one-third of its production capacity was cut.

Despite Weiqiao's efforts to advance the transformation and upgrading of the aluminum industry through measures such as production capacity transfer and green aluminum development, the electrolytic aluminum sector faces strict constraints from national environmental policies and carbon emission targets, posing challenges to profit stability.

WeiQiao's textile sector has also faced pressure. Affected by adverse factors such as the international trade environment and changes in the supply chain landscape, WeiQiao Textiles has been incurring losses since 2022. The sector's overall thin profit margins and high susceptibility to fluctuations in the international market and costs have made it difficult for the textile division to continue serving as the primary engine for the group's growth.

In this context, Zhang Bo gradually adjusted Weiqiao's traditional positioning of "focusing on aluminum and textiles," shifting instead to a strategy that emphasizes both upstream industrial transfer and downstream deepening development.

The automotive industry is a downstream sector of the aluminum industry. At the end of 2024, Weiqiao Group announced plans to invest at least 60 billion yuan over the next three years, with a focus on the new energy and automotive sectors. From producing aluminum materials to manufacturing lightweight components and ultimately integrating resources to produce complete vehicles, this strategy serves as a way for Weiqiao to utilize its own aluminum production capacity and control the entire industrial chain.

Similar to its initial foray from textiles into the aluminum industry, cross-industry car manufacturing represents another round of synergistic expansion for Weiqiao. In an official statement this year, Weiqiao revealed that its aluminum industry's entire supply chain has surpassed 100 billion yuan in scale, necessitating further breakthroughs beyond existing growth drivers. As a trillion-yuan market with extensive supply chains and strong multiplier effects, the new energy vehicle industry aligns perfectly with Weiqiao's aluminum material strengths. Entering this sector can cultivate new profit growth points for the group and establish a diversified industrial ecosystem.

（二）

Weiqiao's car manufacturing layout began in 2023, and its core strategy is to control traditional car companies through capital means in order to gain entry into car manufacturing.

In January 2023, Weiqiao acquired 50% of the shares of Beijing Lanqueling Automotive Technology Co., Ltd., thereby controlling its subsidiary, Lingtu Automobile. Lingtu Automobile, formerly known as Hebei Yujie Automobile Industry, was founded in 2009. It started by manufacturing low-speed electric vehicles (commonly known as "Laolaole") and received investment from Great Wall Motors in 2017. In 2018, it was renamed Lingtu Automobile and began producing micro electric vehicles.

In February 2023, Weiqiao acquired a controlling stake in its subsidiary Beijing Automotive Manufacturing Plant through the acquisition of equity in Fulu Group. This transaction has granted Weiqiao a complete vehicle manufacturing qualification covering both fuel vehicles and new energy vehicles, as well as a modern vehicle manufacturing base located in Qingdao for Beijing Automotive Manufacturing Plant.

While controlling traditional car companies, Weiqiao also formed alliances with new car making forces through strategic investments. In September 2023, Weiqiao made a strategic investment of 1 billion US dollars in Shanghai Luoke Intelligent Technology Co., Ltd., the parent company of the new car making force Jishi Automobile. Weiqiao not only relies on the factory of Beijing Automotive Manufacturing Plant to provide complete vehicle manufacturing services to Jishi Automobile, but also engages in technical cooperation, including the establishment of the "Weiqiao Jishi Automobile Lightweight Joint Laboratory" in Suzhou.

Not only for passenger cars, Weiqiao also established a new energy commercial vehicle division in 2023, and simultaneously set up a commercial vehicle research and development institute and a division management center. According to official plans, Weiqiao's new energy commercial vehicles will achieve an annual production and sales target of 300000 units by 2028.

In order to systematically layout the automotive industry, Weiqiao also established Shandong Weiqiao New Energy Vehicle Technology Group Co., Ltd. in 2024. As the operating and management entity of Weiqiao Automotive Business Unit, the group has invested in and controlled multiple vehicle manufacturing enterprises, design companies, and technology companies, comprehensively coordinating research and development, production, and sales.

Weiqiao did not start making cars from scratch. Aluminum is the core material for automotive lightweighting, and its application in the field of new energy vehicles has the advantages of low energy consumption and strong body stiffness. In December of this year, Zhang Bo announced in a public event that Weiqiao has become the only enterprise in the world that possesses the full aluminum industry chain, vehicle manufacturing, and recycling capabilities simultaneously.

Weiqiao's aluminum industry chain covers all links from upstream resources to downstream deep processing. Upstream, Weiqiao's bauxite project in Guinea was completed and put into operation in 2015, establishing an integrated bauxite supply chain of "mining railway port" to ensure stable supply of raw materials.

Since 2019, Weiqiao has been focusing on the development of high-strength and high toughness new aluminum alloy materials for new energy vehicles, providing automotive lightweight system solutions.

Lightweight technology directly brings about improvements in the range and energy efficiency of electric vehicles. In August of this year, Gu Zhihong, Deputy General Manager of the Passenger Vehicle Division of Shandong Weiqiao New Energy Vehicle Technology Group Co., Ltd., revealed publicly that Weiqiao will help Jieshi Automobile make significant breakthroughs in lightweight technology. It is expected that the proportion of aluminum materials in the next generation of Jieshi products will increase to 50%, the weight of the white body will be reduced by 15%, the torsional stiffness will be increased by 11%, and the range will be increased by 10%.

Weiqiao also seeks to use the advantages of the aluminum industry for business model innovation. Previously, Weiqiao proposed the concept of "Aluminum Bank", with the core idea of providing insurance and after-sales services during the vehicle's service life, and offering three core models of "leasing, leasing for sale, and direct sale" during operation, covering customers with different needs. When the vehicle enters the retirement period, through Weiqiao's recycled aluminum closed-loop recycling system, the body aluminum can re-enter the production chain.

（三）

Weiqiao's car manufacturing layout covers the fuel market, hybrid market, and pure electric market, and it has not chosen a single brand or category for breakthroughs, but has built a brand cluster that encompasses multiple segmented markets.

Beijing Automotive Manufacturing Plant is the most core platform for vehicle manufacturing and brand incubation in Weiqiao Automotive's layout. In June 2024, Beijing Automotive Manufacturing Plant held a press conference to announce the official upgrade of the "212" from a classic off-road vehicle to an off-road vehicle brand. The conference focused on the history of the 212, including products such as Beijing Jeep and the memories it carries of the Beijing automotive industry era, which were constantly emphasized by the authorities.

In August of this year, Beijing Automotive Manufacturing Plant upgraded its MPV model, Ruisheng, to an independent brand, becoming a brand focused on MPVs. Ruisheng Automobile plans to fully seize the market from 2025 to 2027, move into the mainstream camp from 2027 to 2030, and become the market leader in MPVs by 2030.

Lingtu is the main carrier of small electric vehicles within the Weiqiao system. Currently, it has a relatively small presence in the domestic market, but it is looking overseas. At the 2025 Munich Motor Show, two new micro electric vehicles, the L6e and L7e, will make their debut, mainly targeting the European market.

Despite having strong industrial capital and a unique aluminum industry ecosystem, as a new face in the automotive industry, Weiqiao's road to car manufacturing is far from smooth.

Beijing Automotive Manufacturing Plant is facing a brand ownership crisis. The dispute between BAIC Group and Beijing Automotive Manufacturing Plant over the "BAIC" related logo has recently come to an end with BAIC Group winning the first instance. Although Beijing Automotive Manufacturing Plant has filed an appeal, this dispute has exposed the fragility of its brand assets, which may lose its association with the historical symbol of "BAIC".

Previously, a new off-road vehicle model from Beijing Automotive Manufacturing Plant had a hill climbing and rollover accident, causing public opinion to "mistakenly harm" BAIC Group and triggering strong dissatisfaction from BAIC Group. In the past few years, there have been increasing doubts from the outside world about Beijing automobile manufacturers' "brand stealing". How to strip off the controversial label of Beijing Automotive Manufacturing Plant will be an urgent problem that Weiqiao needs to solve.

Contrary to the historical baggage of 212, Ruisheng Automobile needs to start brand building from scratch. In the MPV market where hot selling models are constantly emerging, the popularity of Ruisheng Automobile is almost zero. It needs to establish professional recognition and reliability reputation in the market surrounded by MPV powerhouses such as GAC Motor and Buick. Ruisheng Automobile's ultimate focus on "only doing MPVs" may help to concentrate resources and establish professional awareness, but it may also fall into the situation of a single product line and limited market size.

In the view of Bai Wenxi, Vice Chairman of the China Enterprise Capital Alliance, Wei Qiao excels in cost control and large-scale manufacturing, but the competition in the intelligent era of automobiles is more about product definition, user experience, and ecological services. How to complete the mindset shift from a B-end manufacturer to a C-end brand, and how to understand and quickly respond to users' refined needs, will be the deep level tests that Weiqiao faces on the road of car manufacturing.