Chery Auto to raise '09 sales 18% to 419,000 cars

Shanghai, February 16 (Gasgoo.com) Chery Automobile Co aims to sell 419,000 cars this year, up 17.7% from 2008, Guangzhou Daily reported today, citing Chery chairman Yi Tongyao as saying over the weekend at the company's annual "pep talk" themed "To Win the Year 2009."

Chery Auto, the maker of the best-selling Chinese compact sedan QQ, reported a rare decline of 6.56% in 2008 as the global recession also dented China’s auto industry. The independent Chinese carmaker plans to boost its car sales by nearly 18% in 2009 banking largely on government support to bolster demand amid a slowing economy.

In 2008, the sales of Chery vehicles reached 356,000 units, ranked 5th among China's top 10 best-selling passenger car makers of the year. In January 2009, its sales hit a monthly record of more than 35,000 vehicles, making it China's largest national car brand, lagging only the local ventures of General Motors, Volkswagen AG, Hyundai Motor and Nissan Motor.

Analysts attributed the rebound in Chery's January sales to the recent policy incentives of the Chinese government, including halving the auto purchase tax on cars with engine sizes below 1.6 liters. The policies are a big help for companies like Chery and Geely as they are mostly playing at the lower-end segments of China’s auto market, experts said.

Chery Auto will launch more than 10 new models in 2009. Besides the Chery A3 hatchback version that was put on sale on January 6, the company will continue to release much more car models such as the S16 mini sedan, A6 coupe, A13 sedan (all-new Chery Cowin), A13 hatchback to the market this year.