China auto news this week(2007.08.13-2007.08.18)

The sales figure of July was released recently. VW's two partner in China FAW and SAIC ranked the first two places.

Meanwhile, the combine after-tax profits of China's top 16 automotive groups reached 30.2 billion yuan (US$3.99 billion) in the first half year, increased 66% from a year earlier.

Thus the Chinese market is a lucky market for many global automakers such as SSANG YONG Motors.

The following are top news this week:


Guangzhou Toyota confident to sell 150,000 units this year
 
By Jorvan   From:www.gasgoo.com August 17 2007

Shanghai. August 17 (Gasgoo.com) – Guangzhou Toyota has sold 80,000 units in the first half of this year, about 53.3 percent of its 2007 sales goal, a senior official from Guangzhou Toyota said.

"We're confident that we can achieve our sales target of 150,000 units in 2007," said Feng Xingya, General Manager of Guangzhou Toyota. "We're confident to meet market demand and our production capacity could meet this demand."

Camry has sold about 140,000 units in China since it was launched in the mid of 2006, according to Feng.

Camry is a popular sedan world wide, and its global sales have reached 10 million units to date. Before it was locally made in China, it was once the most popular imported sedan for yeas, Feng said.

In a separate development, Yaris, a small sedan model, will be introduced to China and produced locally in the future, Feng said. 




SSANG YONG Motor's business makes profits for the first time
 
By Jorvan   From:www.gasgoo.com August 17 2007

Shanghai. August 16 (Gasgoo.com) - SSANG YONG Motor Company, a subsidiary of Shanghai Automotive Industrial Corporation, post profits 15.5 billion KRW ($16.39 million) in the first half year of 2007, according to SAIC.

This is the first time that SSANG YONG Motor turns makes profits since SAIC acquired SSANG YONG Motor Company in 2005.

SSANG YONG lost 12.3 billion KRW ($12.99 million) in the first half of 2006.

SSANG YONG Motor Company sold 69,755 units in the first half, up 13.2 percent year on year. Sales rose 4.7 percent in the South Korean market, while sales in overseas market grew 21 percent year on year.

SAIC acquired 51.1 percent share of SSANG YONG Motor Company from Cho Hung Bank in 2005.

SSANG YONG Motor Company's sales were 11,301 units in July, up 74.5 percent year on year.

SSANG YONG Motor Company's sales of entire e vehicles in Chinese market rose 300% in the first seven months, making China its No.1 overseas market.




FAW vehicle sales hit 114,000 units in July 
 
By Jorvan   From:www.gasgoo.com August 15 2007
 
FAW posted vehicle sales of 114,000 units in July, an increase of 32.2 percent year on year.

FAW sold 94,000 units of sedan in July, up 34.5 percent. The company also sold 11,000 units Light and heavy trucks, up 44.2 percent from a year earlier.

In the first seven months, FAW sold a total amount of 808,000 units, up 24.3 percent year n year. The total sales volume include 627,000 units of sedans, 101,000 units of light and heavy trucks, which represent an increase of 25.5 percent and 51.5 percent respectively.

Jiefang, a heavy truck made by FAW, sold 9,386 units in July, up 57.5 percent year on year, and its total sales in the first seven months reached 81,500 units, up 63.1 percent from a year earlier.

FAW-VW sold 40,022 units in July, and 261,000 units in the first seven months, up 45.9 percent compared to the same period last year.




Profits of China's auto manufacturers up 66% in H1
 
By Ally   From:www.gasgoo.com August 15 2007

Shanghai. August 15 (Gasgoo.com) – The combine after-tax profits of China's top 16 automotive groups reached 30.2 billion yuan (US$3.99 billion) in the first half year, representing an increase of 66% from a year earlier, according to China Association of Automobile Manufacturers (CAAM).

Total revenues from core business of the top 16 automobile groups reached 486.6 billion yuan, said Zhu Yiping, director of the Information Center under CAAM. Top three automakers, including First Automobile Works (FAW), Shanghai Automotive Industry Corp (SAIC), and Dongfeng Motor Corp, all recorded revenues of more than 80 million yuan in the first half year.

The Big Three were followed by Guangzhou Automobile Group, Beijing Automobile Industry Corp, Changan Automobile Group, Brilliance China Automotive Holdings Ltd, China National Heavy Duty Truck Group Co (Sinotruk), Chery Automobile Co and Jianghuai Automobile Group.

Although price war has eroded some profits from new car models, almost all major automakers—both local and joint venture automakers, witnessed substantial profit rises, said Guo Yong, director of market information from the Beijing Asian Games Village Automobile Exchange Market, a barometer for China’s automobile industry.

In the first half year, with the exception of a few automakers including FAW Toyota Motor and Guangzhou Honda, all major automakers in China joined the price war.

As for revenue, Guangzhou Auto, South East (Fujian) Motor Co, Chery and Brilliance all experienced rises of more than 50 percent, while others including Geely, Jianghuai, Changan and SAIC posted a moderate increase.

Chery Automobile, the fourth largest and fastest growing automaker in China, posted a profit growth of 210.6 percent in the first half year.

Meanwhile, a few Chinese makers saw their profits down in the first half of this year. Profits of Changhe Auto and Geely fell 5.05 percent; profits of Nanjing Automobile (Group) Corp and Hafei slumped 12.50 percent and 19.34 percent respectively due to sluggish car sales in the first half year.




China’s auto sales top the world by 2015, experts say 
 
By Ally   From:www.gasgoo.com August 13 2007

Shanghai. August 13 (Gassgoo.com)-China could overtake the United States as world’s biggest auto market by 2015, an official from State Information Center said recently.

This year China’s automobile sales are expected to surge 17.7% year on year to 8.3 million units, accounting for 12% of the global sales. Production may reach 8.6 million units; imports and exports are forecasted at 220,000 and 520,000 vehicles respectively by the end of this year, according to State Information Center.

Auto sales in China have doubled in the past six years. In 2003 China surpassed Germany becoming world’s third largest vehicle market. Last year China overtook Japan becoming world's second largest vehicle market after the United States.

Over recent years, annual new vehicle sales in the U.S. stand at approximately 17million units. China only represents one half of this volume; however China is narrowing this gap by growing 20% annually. By 2015 China will catch up the U.S. in auto sales.

Japan and Germany are forecast to lag far behind China with their annual vehicle sales maintaining roughly at 5 million units.

It is also worth nothing that while market share of A-segment vehicles (including A-, A0 and A00) continuously declines in China’s auto market, B- and C segment vehicles are taking bigger market shares.

Market share of A-, A0- and A00-range vehicles were 48.6%, 20.8% and 7.9% in the first half year, down from their record 54.3%, 27.6% and 10.6% respectively. B-segment vehicles have a market share of 18.6% in the first half year compared with its 12.3% in year 2000. C-segment held 6.5%, while it was 5.9% in 2004.

Local brand vehicles hit a record 30% market share compared with the total passenger vehicle sales, an increase of 43.6% year on year, much higher than the 19.5% growth rate of Sino-foreign joint ventures.

But these brands still gain sales mostly from cheap subcompact sedans, raising concerns about sustaining development with limited profits. As market share of small cars continue to decline, these automakers are challenging the market by tapping into the high-end car sector, better competitiveness and waging price wars.