China Auto News of the Week (July 6 - July 10, 2009)

China '09 auto sales set to top 11 mln units

Shanghai, July 10 (Gasgoo.com) Chinese auto sales in June grew by 36.5% from a year earlier to 1.14 million vehicles. Total sales for the first half of the year rose to 6.1 million, and the full-year sales in 2009 are expected to exceed 11 million units, xinhuanet.com reported yesterday, citing an industry group.

China's auto sales in June rose at their fastest monthly rate so far this year, putting the country on track to overtake the U.S. as the world's biggest auto market in 2009. Sales in the first half rose 17.7% year on year (y/y) to 6.10 million units, the China Association of Automobile Manufacturers (CAAM).

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Dongfeng Auto H1 sales fall 9.5% to 94,897 units

Shanghai, July 9 (Gasgoo.com) Dongfeng Auto, a light commercial vehicle producer under Dongfeng Motor Corp, said yesterday that its auto sales in the first half this year fell by 9.55% from one year earlier to 94,897 units, xinhuanet.com reported.

From January to June, the company's light vehicle sales dropped by 16.18% to 67,679 units, while sales of SUVs, MPVs and pickups jumped by 12.61% to 27,218 units. Its engine sales plunged 52.9% to 49,661 units in the period.

Shanghai GM lifts '09 sales target to 580,000 units

Shanghai, July 9 (Gasgoo.com) Shanghai GM, General Motors' passenger car venture in China with SAIC Motor, plans to raise its sales target of this year from 500,000 units to 580,000 units. If the goal is achieved, the company's full-year sales will increase by more than 30% from 2008, said Shanghai Securities News.

Shanghai GM sold 288,843 vehicles in the first half of this year, growing by 16.1% year-on-year (y/y) and setting the company's half-year sales record. The January-June sales of its best-selling Buick brand jumped 34% from a year earlier to 195,989 units.

BYD Auto H1 sales up 176% to 176,795 cars

Shanghai, July 8 (Gasgoo.com) BYD Auto sold 176,795 vehicles in the first half of this year, a rapid increase of 176% from a year earlier, reported Shanghai Securities News, citing the carmaker's latest statistics.

The business newspaper said BYD Auto has also revealed its sales volume of June, in which its electric plug-in hybrid F3DM sold 19 units.

Beijing Auto to announce merger with Fujian Motor

Shanghai, July 7 (Gasgoo.com) Beijing Automotive Industry Corp is ready to announce a merger with Fujian Motor Industry Group that will cement its bid to become the mainland's fourth-largest carmaker, the South China Morning Post reports on Sunday.

Citing sources, the newspaper reports that the two parties are currently finalizing the shareholding structure of the proposed new company and a formal statement on the deal is expected to be released by the end of this month.

Volvo launches tech support center in Shanghai

Shanghai, July 7 (Gasgoo.com) Sweden-based Volvo Construction Equipment Co., which makes excavators, haulers and trucks, has launched a test and technology support center in Shanghai and expects better China market conditions, Shanghai Securities News reported.

The company aims to sell 3,000 to 4,000 units in China this year, Eberhard Wedekind, its Asia Pacific president, said last Thursday after launching a 150 million yuan ($21.96 mln) test and technology support center in Shanghai.

Fiat signs JV deal with Guangzhou Auto

Fiat Group CEO Sergio Marchionne signed an agreement on July 6 with state-owned Guangzhou Automobile Group Co. (GAC) to produce cars in a joint venture beginning in the second half of 2011 as Fiat seeks to expand its position in the growing Chinese market.

Marchionne signed the deal with GAC Group chairman Zhang Fangyou in the presence of Premier Silvio Berlusconi and Chinese President Hu Jintao, who were meeting ahead of the Group of Eight summit, which begins Wednesday in the central Italian city of L'Aquila.

Beijing Auto plans to build Opel factory in China

Shanghai, July 7 (Gasgoo.com) In a detailed bid it submitted last week for GM's Opel, Beijing Auto outlined a plan to spend $2 billion setting up Opel's first factory in China, the Financial Times reported. The factory would start operating in 2012.

Beijing Auto plans to build Opel models specifically for the Chinese market. Meanwhile, the Chinese automaker will use Opel's German plants to export cars to China and proposes to shut down GM's Belgian Antwerp plant and cut Opel's European workforce.

Changan Auto sales up 66 pct in June

Shanghai, July 6 (Gasgoo.com) Chongqing Changan Automobile Co.(000625.SZ) said in a statement its June sales jumped 66 percent from a year earlier, China Securities Journal reports.

Changan Auto sold 126,034 vehicles in June, up 65.9 percent from a year earlier. In the first half of this year it sold 660,219 vehicles, up 34.8 percent from a year earlier.