Shanghai Automotive Group Company (SAGC) and Shell are launching a new joint venture to develop fast lube service facilities for motorists in China.
The new joint venture, Anji Jiffy Lube Automotive Services Company Limited, will start building a network of fast lube service outlets this year modelled on the pioneering Jiffy Lube chain in North America.
Shanghai Automotive Industry Sales Corporation (SAISC), a subsidiary of SAGC, has a 50% share of the joint venture, and Shell China Holdings B.V. and Shell (China) Limited hold a 40% share and 10% share respectively. The total investment of the joint venture is $23 million.
The joint venture plans to develop about 10 pilot outlets in Shanghai within the first year of operation, using this experience to plan for expansion in Beijing and elsewhere in China. By 2015, the joint venture aims to have developed a network of more than 600 outlets across China.
The targets reflect the significant growth in vehicle population in China, which already has 23 million vehicles on the road. In terms of new car sales each year, China is now the third largest in the world, after the US and Japan.