Great Wall Motor lowers full year sales target

Shanghai, November 11 (Gasgoo.com) Great Wall Motor Co, China's largest manufacturer of sports utility vehicles and pick-up trucks, has lowered its full year sales target of 2008 from the original 160,000 vehicles to 130,000 units due to sliding market.

"Despite our cost-cutting efforts, Great Wall has been hit by declining margins as raw material prices rose and the economic environment took its toll on the auto market," said Jia Yaquan, general manager of Great Wall Automobile Sales Company.

At the beginning of this year Great Wall Motor set its target to sell 200,000 vehicles in 2008, up from 120,000 in 2007, with exports estimated to rise sharply to 80,000 units this year from roughly 50,000 units last year.

Great Wall Motor noted its gross profit margin in the first half year dropped to 20.5% from 23.9% of the same period last year due to the soaring raw material cost. The cost of sales and administrative expenses jumped 44% and 54.6% year-on-year respectively.

The company posted a net profit increase of 0.56% year-on-year to 408 million yuan ($59.5 million), also a lower-than-expected result.