China Auto News of the Week (June 29 - July 3, 2009)

Shanghai, July 3 (Gasgoo.com) China has outpaced the United States in auto sales in the first half of this year, making itself the largest auto market in the world - the beginning of what could be a lasting trend.

Official Chinese auto data for the first half comes out next week, but from January through May, Chinese auto sales already topped 4.96 million units, up 14.29 percent from a year earlier, according to China Association of Automobile Manufacturers (CAAM).

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Chang'an Auto to boost Hebei plant output to 500,000 units

Shanghai, July 3 (Gasgoo.com) Chongqing Changan Automobile Co began construction on a new production facility for mini-vans and mini-trucks in Dingzhou in north China's Hebei province on Thursday.

The new facility, to be located on the south of its existing Hebei Chang'an Automotive Co unit, is expected to boost Chang'an annual production capacity in the region to 400,000 units when the first phase of construction is completely in 2010 and will eventually to 500,000 units when the entire expansion work is completed.

China has 300,000 alt-fuel vehicles on road

Shanghai, July 2 (Gasgoo.com) China now has more than 300,000 alternative-fuel vehicles running on the road, and they can save 3 million tons of gasoline and diesel each year, xinhuanet.com reported today, citing a technology official.

The Chinese government has urged automakers in the country to develop and produce new-energy vehicle as a means of the sustainable development of the auto industry, said Mr. Zhang Zhihong, Deputy Director of the State Ministry of Science and Technology. For instance, the alternative-fuel vehicle can achieve energy efficiency, low emission and eco-friendliness.

China is biggest exporter of light electric vehicles

The new energy automobile is developing rapidly in China. China has become the biggest producer, consumer and exporter of electric vehicles in the world.

According to the blue paper on China's auto industry in 2009, the number of electric bicycles and electric motors has reached about 50 million, which accounts for 90% of the world total.

Shanghai GM sells 288,854 cars H1, 60,356 June

Shanghai, July 1 (Gasgoo.com) Shanghai GM said today that it sold 288,843 vehicles in the first half of this year, rising by 16.1% year-on-year and setting the company's half-year sales record, sina.com reported. The first-half sales include 60,356 units sold in June, an all-time high of monthly sales.

The passenger car venture between GM and Shanghai-based SAIC saw the January-June sales of its best-selling Buick brand jumped 34% from a year earlier to 195,989 units. 

BAIC, Geely still interested in Volvo takeover

Shanghai, July 1 (Gasgoo.com) China's Beijing Automotive Industry Holding Corp (BAIC) and Geely Automobile Holdings remain interested in Ford Motor's Volvo car unit, Reuters reported yesterday, citing insiders. In addition, a "Western industrial group" is also a potential bidder.

Geely Auto, which has already visited Volvo in Sweden, plans to make a fresh visit soon, and Geely representatives are likely to visit Volvo this week, sources told Reuters. Ford is also hopeful that a consortium of Scandinavian investors may come together to lodge a proposal. 

China unexpectedly raises fuel price by 10%

Shanghai, June 30 (Gasgoo.com) China has raised retail prices for gasoline and diesel by about a tenth, which is the third time for the country to raise fuel price since March in an attempt to bring the price in line with international level, reported Reuters.

The National Development and Reform Commission announced on late Monday it was increasing retail prices for gasoline and diesel by about 600 yuan ($87.80) per tonne.

China to restrict lithium battery vehicles to certain city roads

Shanghai, June 29 (Gasgoo.com) China will restrict the marketing and use of vehicles run on lithium ion batteries to certain areas in cities but is yet to specify on where, Chinese newspaper Jinghua newspaper reports Monday.

China's Ministry of Industry and Information Technology (MIIT) has published a report on the development of different types of new energy vehicles, which says electric and lithium ion batteries are still under development, therefore can only be sold in prescriptive regions. 

China seeks opinion on subsidy for auto trade-in

Chinese government has begun to seek public opinion on subsidy program for auto replacement, amid a slew of measures to stimulate private spending and curb pollution.

According to a joint circular issued by the Ministry of Commerce and the Ministry of Finance on Friday, automobiles should meet the following requirements to be replaced with new set: the light truck and mid-sized taxi with less than eight years of use, mid and small-sized truck and mid-sized passenger car (exclude taxi) with less than 12 years of use.