2010 sales reports reveal rapid growth across the auto industry

Shanghai January 18 (Gasgoo.com) By looking at yearly sales reports Chinese automobile companies have put out this year, it is clear that 2010 was a truly valuable year for the industry.

Among the domestic companies, the Hefei-based Anhui Ankai Automobile (000868.SZ) had a net profit of 73.24 million yuan ($11.1m) last year, representing an increase of 201.35% from the previous year, with its stock valued at .239 yuan ($.0363) per share. Ankai owes its success to the increasing scope of its sales, as well as the growth of its spare parts business.

The neighboring JAC Motors (600418.SH) also saw its net profits more then double from 336 million yuan ($51m) in 2009, increasing over 240%.

The Shangdong-based large bus maker Zhongtong Bus Holding Co.'s (000957.SZ) estimated its net profits at 38 million to 41 million yuan ($5.77m-$6.23m). This increase of 85%-100% is the most modest figure to be announced by any of the manufacturers.

SAIC Motor Corp. (600104.SH), China's largest automobile manufacturer, had seen a 300% increase in the third quarter of last year. This month, the company reported fourth quarter sales of 3.58 million vehicles. While only equivalent to a 31% increase, the sheer amount of vehicles sold is an impressive result.

China's other large auto maker Chang'an Automobile Group (000625.SZ) posted sales of 1.85 million vehicles, an increase of 35.2% from 2009’s 136.9 million vehicles.

Beijing Automotive Industry Holding Corp. (BAIC) reported that with total vehicles sales last year of over 1.5 million cars, it estimated its net profit at 110.4 million yuan ($16.77m), representing an increase of 75.1% from the previous year.

In an interview with First Financial Daily, General Secretary of the China Passenger Car Association (CPCA) Rao Da said that seeing the average 30% growth in sales double across the industry is not a hard to understand phenomenon. Mr. Rao said that as production capability improves and expands, resulting in lowered costs, profit will naturally increase.