Shanghai, June 23 (Gasgoo.com) China's biggest automaker SAIC Motor may raise nearly 10 billion yuan ($1.47 billion) in its planned share sale to help boost its passenger car business, the 21th Century Business Herald reported this week.
SAIC, operates auto-making ventures in China with General Motors and Volkswagen AG, is redoubling its efforts to develop its own-brand car models, such as Roewe and MG sedans. The company has invested more than 4 billion yuan in its MG series and plans to invest at least 6 billion yuan to promote the brand.
Currently SAIC is the only local automaker that has entered in China's lucrative medium- to high-end car segment, which is still dominated by locally made Buick, Passat, Audi, Accord and Camry models, a Reuters report said. SAIC's most vehicle sales have been achieved by its joint ventures with GM.
The share issue will also raise fund for the development of green vehicles. SAIC announced over the weekend that it was planning a private placement of new shares. Trading of its Shanghai-listed shares was suspended from Monday.
SAIC president Chen Hong said that the company would achieve its annual target of selling 3 million vehicles this year, although auto sales in China, the world's biggest car market, may slow to a moderate growth rate of about 15%.
