Shandong auto capacity to hit 1.35m units by 2011

Shanghai, March 4 (Gasgoo.com) East China's Shandong province has planned to make 1.35 million vehicles annually by 2011 and to gain 10% market share in the country's auto industry, xinhuanet.com reported today.

Shandong province has recently held a meeting to discuss strategies of stimulating its nine major industries. On March 3, the eastern province released its auto industry "boost plan" which has outlined the targets to be reached in the coming three years. 

The goals include the production of 200,000 special vehicles; new-energy vehicles to account for 5% of the province's total vehicle output; the market share of 1.3L-minus passenger vehicles to increase from 12% in 2008 to 20% within three years; the auto sector's sales revenue to reach 350 billion yuan ($51.3 billion) by 2011, up 15% annually.

Shandong province will locate more than 90% of its auto manufactures in well-developed areas. By 2011, the four auto-making bases in Jinan, Qingdao, Yantai and Weifang will each have an annual capacity of 200,000 vehicles, and the auto output in Zibo, Weihai, Liaocheng, Rizhao and Jining will hit 100,000 vehicles each.

The auto industry of Shandong province has focused on commercial vehicles. Headquartered in Jinan, capital city of Shandong, Sinotruk is the cradle of China's heavy-duty truck industry and the largest maker of Chinese heavy trucks. The province also has five light-duty vehicle automakers. General Motors' Chinese ventures have facilities in Qingdao and Yantai.