Automakers set higher targets after robust Jan sales

Shanghai, February 20 (Gasgoo.com) Chinese automakers have set higher sales targets for 2010, driven by robust sales in January, to continue the growth momentum of late 2009, China Times reported today.

China's auto sales surged 124% year on year in January to a monthly record of 1.66 million vehicles, extending last year's strong gains and bucking forecasts for weaker growth. Passenger vehicle sales exceeded 1.3 million units in January, up 110%.

Chery has set a 2010 target of 850,000 units, BYD 800,000 units, Geely 400,000 units, and SAIC Volkswagen 829,000 units. Overall, home-grown brands have increased targets by 70% on average while joint-ventures are aiming at a 20% rise. GM China expects about 13% growth to 2 million vehicles for this year.

China's total vehicle sales soared 45% last year to an estimated 13.6 million, overtaking the U.S. as the world's biggest auto market. China's auto sales can still easily grow by double-digits to exceed 15 million units thanks to strong demand and stimulus policies.

Some analysts say there are signs of emerging overcapacity issues. The Chinese government will not approve auto capacity expansion project of its automakers unless they first agree to take over a domestic rival.