Chery to boost sales 80% to 900,000 cars this year

Shanghai, March 3 (Gasgoo.com) Chery Auto, China's largest home-grown automaker, said yesterday that it aims to boost its car sales by up to 80% this year, Reuters reported.

The car company said in a statement it would sell at least 700,000 vehicles this year but will strive for a target of 900,000 units, with at least 17 new models to be launched. Sales by Chery hit 500,000 units last year, up 40.5%.

This sales target will likey make Chery overtake its domestic rival BYD, which has raised its 2010 sales goal to 800,000 vehicles from 700,000 units. BYD sold 440,000 vehicles in 2009.

Chery started construction in January on a new 10 billion yuan plant in its headquarters city of Wuhu after breaking ground for a 200,000-unit factory in the northeastern coastal city of Dalian in September 2009.

The company's annual production capacity, currently at 650,000 units, will be boosted to more than 1 million vehicles by early 2012 when the two new facilities now under construction go into operation.

Passenger car sales in China, now the world's biggest auto market, jumped 52.9% last year to 10.3 million units, boosted by government's policy incentives. Growth this year is estimated at a slower 10%.