Dongfeng lifts '09 sales target 18% to 1.3M units

Shanghai, August 26 (Gasgoo.com) China's Dongfeng Motor Group, the country's third-largest carmaker, said today it has raised its 2009 sales target by 18% on encouraging sales of its passenger vehicles amid China's economic stimulus measures, Reuters reported.

Dongfeng was aiming to sell about 1.3 million vehicles this year, up from its previous target of 1.1 million, Dongfeng President Liu Zhengmin told reporters. "We are optimistic about the development of China's auto industry. The market is having 10 years or more of speedy growth," he said.

The carmaker sold a total of 610,000 vehicles in the first half of 2009, up 4% from the same period last year. It reported a 5.4% rise in first-half net profit of 2.6 billion yuan ($381 million), beating the consensus for a flat first half.

Earlier this year, the Chinese government halved the auto sales tax and offered subsidies, helping its carmakers avoid the slump in vehicle sales. The country, whose vehicle sales rose 31% to 5.37 million in the first seven months, is surpassing the U.S. as the world's largest auto market this year.

Industry analysts expect Dongfeng to further improve profitability in the second half as sales of commercial vehicles are expected to rebound as the economy strengthens.