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   Key Projects 
Project Name:
Beijing International Automobile Exposition Center Project
Project Owner:
Beijing International Automobile Exposition Center Constructed Office. The organization was organized specially for the Beijing International Automobile Exposition Center Project with the authorization of the Fengtai District government. It is responsible for various matters concerns Beijing International Automobile Exposition Center Constructed Project.
Constructed Spot
Beijing, Fengtai District Huaxiang Liuquan Village
Scope of works
The Automobile Exhibition Center covers a constructed area of 650,000 square meters, including an over-ground area of 520,000 square meters and an underground area of 130,000 square meters. These facilities include: the Automobile Museum with a constructed area of 47,000 square meters, which is a commonweal project; commercial project with a constructed area of 603,000 square meters, including an automobile museum, an brand exhibition area, a distribution hall, a business area and an automobile theme park, etc.
The Automobile Museum has a over-ground area of 33,000 square meters and an underground area of about 14,000 square meters. It can be utilized in automobile exhibiting, theme displaying, automobile science popularizing, automobile entertaining and academic exchanging, etc. On one hand, through numerous exhibits including automobiles, automobile articles and automobile artworks from home and abroad in different historical periods and various automobile derivatives, the life and cultures of different periods are reflected; on the other hand, the boundless charm and infinite joy of automobile technology is revealed by a great number of science popularizing projects combining knowledge, participation and entertainment.
The brands display halls will be constructed by automobile manufacturers on their own will. The halls will be constructed in different manners and styles, with publicizing entrepreneurial cultures and brand cultures of automobile manufacturers as its main function. Seven or eight such halls will be scattered in the Automobile theme park, whose constructed areas will be 10,000 to 15,000 square meters.
The distribution hall mainly consists of franchised automobile stores and commercial and office service facilities, supplying consumers with services of automobile purchasing, repair, maintaining and spare parts. It will have constructed space of about 100,000 square meters.
The commercial region will mainly consists of office buildings, hotels, department stores and apartments, meeting the requirements of related industries handling official business, conference, information exchanging, new automobile releasing. It will have a constructed of about 380,000 square meters.
The Automobile theme park is located in the center of the Automobile Exhibition Center. Inside the park, there are attracting lakes and rolling hillocks, which compose a wonderful scenery; outside the park, green and clear water encircles the whole park like jade belt. All kinds of brand halls of different styles scattering in it, forming a piece of pleasant painting, which allows visitors experience the charm of automobile technology in leisure and entertainment.
Total investment and project schedule
The total investment of Beijing International Automobile Exposition Center Constructed Project's preliminary estimate approximate 4 billion., among which about 700 million yuan invested in Automobile Museum (constructed investment amounts to 400~450 million yuan and items on display investment amount to 250~300 million yuan).
The requisition of land since March, 2004. It is approximated that the main part of the museum will begin in due form at the end of 2004, complete in 2007 and open to the public at the end of the same year.
Project background
1. The project has a sound market expectation
(1) Introduction to the policy environment
To achieve the magnificent objection of "New Beijing, Great Olympics" and in accordance with the theme topic for 2008 Olympics of "Technological Olympics, Human Olympics and Green Olympics", Beijing Municipality has decided to focus on the construction of five museum, and the Automobile Museum is one of them.
According to the Automobile Market Development Program of Beijing by the Beijing Government, automobile markets will begin to switch from country fair trade style to large scale and incorporate integrations or automobile towns. So as to meet the need of culture construction and economic development of the capital, the city government decides to establish the Beijing International Automobile Exposition Center Project, which is a composition of automobile culture exposition, science popularizing, trade, commerce and tourist services. Among them, the Automobile Museum, as a commonweal project, is the core establishment and landmark building.
The constructing of the Automobile Museum meets the requirement of perfecting the construction of cultural basic establishment in the capital, solidifying and developing Beijing's function of cultural center, as well as picking up the step of the urbanization, modernization and internationalization of the capital. It is also the need of spreading and popularizing automobile cultures, enhancing technological and cultural levels of the masses, as well as enhancing literate atmospheres.
The city government has already listed Beijing International Automobile Exposition Center and Automobile Museum in the key projects of Beijing. The government charges the Fenghai District government with the responsibility of the project's construction. District government has specially set up "the Constructing Office of Beijing International Automobile Exposition Center " to take charge of the exploitation and construction of the project.
(2) An introduction to the market environment and positioning of the project
a. market requirement of the project
The automobile industry is considered as one of the pillar industries of national economy. The national government encourages automobile consumptions. Our country has entered the automobile period, with the expected number of car retaining in Beijing amounting to 3,500 thousand in 2005. Automobiles and automobile culture market have become one of the major directions of consumption and entertainment.
The level of competition among automobile manufacturers has been upgrading. Brand cultures will become the commanding position of competition. As a consumption-oriented and center-radiating city, Beijing is the best choice for automobile manufacturers to compete on brands. Beijing International Automobile Exposition Center is different with those automobile exchange markets in general. It is positioned as a center of automobile culture and consumption, and is a place for automobile manufacturers to compete on their brand cultures in China.
Technological and automobile travel has been popularizing. With the help of automobile science popularization, the automobile science popularizing travel can break the sophisticated automobile technological theories up into vivid and controllable models. Emphasizing entertainment and participation through entertainment items, it will surely become a new flash point of the tourist market of Beijing.
In the area of this project, a potential automobile consumption market is forming. The earliest, the largest and the most reliable second-hand cars exchange market is near this project. And consumers of Beijing have long been considering it the most important consumption place in Beijing automobile market.
In the succeeding development and operation, the project will be conducted on the basis of influences of the former second-hand automobile exchange market, and will be guided by the programmed Automobile Museum, as well as assisted by the Automobile theme park. It will build up a integrate specialty consumption area, which has automobile exhibition, automobile trading, automobile education and automobile culture as main themes. It will become a automobile market in reasonable scale, and will be adapt to the future change and requirement of the automobile market.
b. positioning of the project
Beijing International Automobile Exposition Center is positioned as the world-leading and capital first-level automobile cultural center, automobile consumption center and information center of automobile industry. Its function will be the composition of automobile exposition, information exchange, brands exhibition and science popularization & entertainment. Beside, it will become a integrate base of spreading automobile culture, communicating automobile information, experiencing automobile technologies, enjoying automobile fun and developing automobile economy and build up a harmonious and unified atmosphere among people, automobiles and environment.
c. Profitability analysis of the project
(a) Automobile Museum
The automobile market has just entered the growth stage. With broad consumer market, it has already drawn the full attention of many foreign automobile manufacturers. The Automobile Museum is an important location to exhibit automobile cultures. None of the automobile manufacturers would not miss the good chance to publicize their brands. As a result, they are bound to broaden their influences in the Chinese market by way of spreading brand cultures.
Referring to the number of visitors and operating conditions of related foreign automobile museums, here are the statistics. Ford Automobile Museum achieves a passenger flow volume of 16 million person-time; Folk's Wagon Automobile City 12.2 million person-time. After surveying and assuming, the passenger flow volume of the Automobile Museum will reach 1.3 million every year, keeping balance with China Technology Museum. The potential of advertising income is huge. Assumed understatedly, the incomes of other accessorial items are able to balance the input and output of the museum.
The income items of the museum will mainly come from entrance tickets, advertisements, meetings and exhibitions( industry meetings, exhibitions, congresses, long-term and short-term exhibitions, science popularization education, etc.), innervational demonstration (three-dimensional innovational movies, mock experiment system demonstration, mock driving environment experience, etc), marginal product development( costume, automobile ornament, model s, CDs, books, magazines, stamps and souvenir, etc.), business services( services for meetings and exhibitions, office work, tickets of trains, plans, buses, banks, post, rituals, assistant traffic facilities and communicate network, etc.), traffic regulations schools for automobile drivers, automobile mock road demonstration system, auto-fans club and others like industry technologies, as well as culture, information and news broadcasting, websites, advertisement agents, information on automobile trends, minitype industry association exhibitions, industry exchange research and discussion, international industry meetings, and sodalities, entertainment activities.
(b) Brand Exhibition area and Distribution hall
The brand exhibition area serves mainly as exhibiting the brand culture of automobile manufacturers. Its favorable advertising effect makes many automobile manufacturers highly interested in investing here.
The distribution hall achieves its goal of selling cars by transferring or renting grounds to brand agents and dealers. There have been several foreign or national automobile manufacturers showing their interest in investing in the distribution hall.
(c) Commercial Region
The commercial region is positioned to attract the automobile industry organizations and correlative corporations, who have shown strong interest in investing in the commercial region, and make them entering into it.
At the same time, besides the principal industry of automobile, the introduction of integrate business is gradually going along with the consumption levels of Beijing southwest Sihuan. Besides, other commercial formats, such as centralized business(Wal-Mart, Prices mart, etc.), can meet the needs of consumers by large scale, and so as to achieve the effect of assembling energy and attracting attention.
The top-grade residential real property such as luxurious hotels, cosmical meeting facilities, entertainment, scattered business and the formation of other industries also play an important part in the northern commercial region of the whole project. Along the two side of 21 automobile theme parks, each of which is as large as a football court, there are lots of 4S shops that belongs to various kinds of famous brands. This scene also builds up a new automobile distribution concept, that is to comb automobile distribution with attracting sights. As the core of Fengtaixinqu, with the superiority of being the base of the headquarters, Beijing International Automobile Exposition Center will make great distribution to the shining of Fengtai.
(d) the project has a good investment expectation
In terms of the general market environment, launching of the Beijing International Automobile Exposition Center project goes together with the rapid development period of Chinese economy; in terms of geography, it has incomparable advantages; in terms of the general positioning of the project, it has used the advanced theories for reference.
The Fengtai Government will take a good chance of the preparation of the Automobile Museum, and begin broad exchange and cooperation with people of all circles. Sincerely welcome those organizations, enterprises, social personages who have the foresight and the strength to take bold actions to pay attention to the project and participate in the construction.
We believe, with the sincere cooperation and unremitting effort of all sides, the Beijing International Automobile Exposition Center Project will bring about gigantic social and economic returns and will become a first-rate automobile culture, consumption and industry information center either in the capital or worldwide.
2. The project has superior external conditions
Beijing International Automobile Exposition Center is located in Huaxiang, in Fengtai District of Beijing, with the competed express way - Nansihuan Avenue to its north and the main artery of the city - the constructing extended part of Wanshou Road to its west. The traffic is sound and convenient.
With the base of headquarters of Zhongguancun Science And Technology Zone(Fengtai) to its west, the mature communities such as Yihai Garden and Baolong Apartement to its north, and with tourist attractions such as the World Park, Dabaotai Han Graves around, the exposition center us provided with sound investing and traveling environment and consumption mass in reasonable scale.
3. the earlier stage work is going steadily and smoothly, and has gained reasonable maturity.
(1) The Project Proposal Review and Suggestion on Planning has been completed, and the written reply to land expropriation has been obtained.
(2) The layout design of the exposition center and the bitting for design of Automobile Museum is completed. At last, the design plan of the designing combination unit of HENN(Germany) and (B+H)(Canada) took the first place for its broad vision and advanced principle.
(3) We have strengthened cooperation with the organizations and corporations in automobile industry; we have invited experienced experts and scholars in the industry to join their effort in research and argumentation, and by doing so , we completed the positioning of the Automobile Museum and the research on the setup of exhibit items; we have decided the channel, directions and methods of collecting exhibits and the criteria of the museum's scale, grade, level and quality.
(4) We will complete the cleaning up of the used land recently.
Investment return mode
The exposition center project is a integrate project, which combines commonweals with commerce. On one hand, the museum will have an incentive to the business projects; on the other hand, in order to raise the constructed and operating fund, the only way is through the development of business projects. The museum and the exposition center business project are indivisible.
As a result, we decided to conduct the following developing and operating mode, that is: the exposition center developed in a whole, and the museum constructed with the join venture of government investment and
With terms of the development and usufruct on the operating business projects in the center, the Automobile Museum will attract social capital participating in the financing, construction, operation and management of the museum. The government will make use of laws and regulations, economic policies and other controlling mechanisms to organize, guide, coordinate and supervise the automobile museum's constructing, financing, operating and transferring.
The government will assign a company as the deputy of government. By public bidding, the project partner will be chosen and form the company together with the government.
The deputy of the government will exercise the decision-making rights and controlling power of the museum. project partner will conduct the decision-making rights and controlling power of the business projects, take responsibility to the financing, construction, operation and management of the business project, be responsible for the construction of the museum, and also enjoy the rights of most of the business projects' ownership and usufruct. After the completion of the museum, all the ownership will belong to the government, and by way of franchising, the management rights and usufruct will belong to social capital.
In the duration of the operation of the project company, the government will organize and coordinate the whole project, if necessary. And besides, it will provide the project companies with services concerning the construction of the museum, the collection of the exhibits and the operation of the project.
 


 
   
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