Subaru may establish independent sales company in China

Gasgoo.com (Shanghai August 28) - Subaru may follow the example of BMW, Renault and Jaguar-Land Rover by establishing a Chinese company to overlook its sales and other operations in the country, China Business News reported today. The manufacturer plans to announce further information by the end of this year, at the earliest.

In other news, Subaru's current agreements with nationwide automobile retailer Pangda Group, Shanghai retailer Anji, and Dongguan retailer Yimei will all expire at the end of this year. If Subaru does indeed open its own subsidiary company, these retail networks will no longer have exclusive rights to sell its imported models in the country. This news would be especially bad for Pangda, which has helped sell half of Subaru's vehicles in the country.

When asked about the issue, Subaru China officials refused to give a definite answer.

Zeng Zhiling, director of consulting firm LMC Automotive Asia Pacific, warns that even if it established its own subsidiary sales company, Subaru may not be able to gain the results it desires from the Chinese market. "The SUV market in China is nearing saturation," Mr. Zeng comments, adding that, "even if Subaru was able to gain rights [to sell its vehicles independently], it may not be able to improve its position in the Chinese automobile market."