China auto news this week(2007.08.20-2007.08.25)

It is a remarkable day for the Chinese auto history, with Chery's 1millionth car rolling off the assembly line, Chinese domestic automaker will come to a new era.

Meanwhile, the traditional China's automaker such as SAIC and FAW released their staggering mid-term report, showing that their vehicle sales and sales revenue were much better than expected.

The sales of SUV in China reached 187,600 units, up 46 percent from a year earlier.

The above are the abstract news this week.


Chery rolls out its millionth car
 
By Joanne   From:www.gasgoo.com August 23 2007
 
Shanghai. August 23 (Gasgoo.com) - Chery Automobile held a celebration as its 1,000,000th car rolled off the assembly line yesterday. As the first Chinese home-grown automaker ever to reach this milestone, Chery's success astonished the world.

It takes Chery seven years and nine months to reach this point. By July this month, Chery has exported a total number of 153,694 vehicles since it started exporting the first vehicle in 2001. For four consecutive years, Chery has consolidated its position as China's largest sedan exporter.

With its annual output capacity exceeding 400,000 units, Chery has sold 232,785 cars in the first seven months of the year. The company plans to raise its annual output capacity to one million units open 14 new plants overseas and export 600,000 vehicles by 2010, according to the company's announcement,.

Headquartered in Wuhu city of Anhui province, the automaker differs from other domestic players for its self-reliance---Chery insists on developing its own brands.

The company has also attracted many international automakers to form partnership relations. After having sealed cooperation deals with Fortune 500 enterprises like Johnson Controls, Delphi and PPG Group, Exxon Mobil Chemical, Chery has recently secured cooperation with with Fiat and Chrysler.

Earlier this month, Chery has reached an engine supply deal with Italian auto maker Fiat. Under the agreement, Chery will supply over 100,000 engines every year to equip the Fiat cars produced globally. The deal is followed by a small-car development and production agreement with Chrysler Group on July 4th.  

With its models like Cowin, QQ3, Tiggo 3 and A5, Chery has maintained a full line-up, ranging from city cars to MPVs, from sedans to SUVs. Most of Chery's vehicles have stabilized their standings in market.




Shanghai Auto net profit up 358% in H1
 
By Ally   From:www.gasgoo.com August 22 2007

Shanghai. August 22 (Gasgoo.com) – Shanghai Auto, a Shanghai listed automobile company yesterday posted a net profit surge of 358.1 percent in the first half year, according to the company's H1 report today.

The listed company earned 2.72 billion yuan ($358 million) in net profit in the first six months, up from 592.82 million yuan in the same period last year. Its earnings per share jumped to 0.415 yuan from 0.181 yuan over the period, according to its H1 report.

The huge increase of net profits is driven by buoyant sales and a major asset injection from its parent company, Shanghai Automotive Industry Corporation, the company said.

Shanghai Auto's parent Shanghai Automotive Industry Corporation which holds 83.83 percent of the listed company injected $2.4 billion last December into its listed company, including two joint ventures with Volkswagen and General Motors.

Shanghai Automobile has acquired 100 percent of Shanghai Shenlian Special Purchase Vehicle Co, 50 percent of SAIC Iveco Commercial Vehicle Investment Co, 50 percent of Shanghai Huizhong Automotive Manufacturing Co and 2.41 percent of Ssangyong Motors in South Korea during this period.

The company's H1 sales revenue, including that from its South Korean unit Ssangyong Motors, soared by 2,202.4 percent to 51.07 billion yuan ($6.72 billion). It also sold 840,000 vehicles in the first six month, up from 682,000 units last year.

Auto experts are optimistic about Shanghai Automotive's full-year performance. The auto group's home-made automobiles are expected to grow to 8.5 million units in 2007 from 7.22 million units last year.

Also in the first half year, Shanghai Automotive's operating profit jumped to 3.44 billion yuan ($452.6 million) from 595.36 million yuan ($78.34 million) last year.




FAW Toyota posts strong H1 result, kicks off used car sales
 
By Joanne Jiu   From:www.gasgoo.com August 21 2007

Shanghai. August 21 (Gasgoo.com) –-FAW Toyota Motor Co., a joint venture between Toyota and the Chinese automaker FAW posts its better-than-expected interim report last Saturday.

During the first six months of 2007, FAW Toyota sold 111,000 units of new cars, 7 percent higher than the target set earlier this year. Almost all the models produced by the company gained an increase compared with last year.

Compared with the same period last year, sales of Toyota Crown sedans rose 34 percent; Vios 41 percent; Prado 74 percent. The automaker released revamped Corolla in late May, and had received orders of 36,500 units by the end of July, which triples the old-version Corolla's order volume.

To meet the growing demand, FAW Toyota revised its full-year forecast for 2007---from 260,000 units to 270,000 units, and Tianjin FAW Toyota, a subsidiary of FAW Toyota, will implement a double shift operation this October ahead of schedule.

FAW Toyota also geared up as China's second-hand car market grew. The company has developed "SMILE confirmed second-hand car program", that collects used cars confirmed by Toyota's technicians from the trade-in shops, and these cars will be sold at the franchised stores.

FAW Toyota's first second-hand car store will be open next month in the costal city of Ningbo, and nine more such stores will be set up in the near future. FAW Toyota aims to expand the circulation of its second-hand cars, setting an annual sales target of 10,000 units by 2011. 




China's home-made vehicles prices in July down 0.44% month on month 
 
By Tony   From:Gasgoo.com August 21 2007

Shanghai. August 21 (Gasgoo.com) – China's home-made vehicles prices dropped 0.44 percent from a month earlier, according to a Chinese media report.

In July, China's passenger vehicle prices dropped 0.44 percent from a month earlier, down 2.81 percent from the beginning of this year, the report said.

Also in July China's commercial vehicles prices dropped 0.32 percent from a month earlier, revering the upward trend in June.

Among commercial vehicles, bus prices dropped 0.13 percent in July from a month earlier; light bus prices dropped 1.10 percent, by contrast, large bus prices up 0.20 percent from a month earlier.

Middle-duty truck prices in July dropped 2.24 percent and heavy duty truck prices dropped 0.27 percent, however, light duty truck prices up 1.85 percent month on month.

Imported vehicles prices in July rose 1.32 percent from a month earlier, driven by rising imported car prices, which rose 2.91 percent from a month earlier. However, imported SUV prices in July dropped 0.91 percent from a month earlier.




SUV sales rose 50 percent in the first seven months
 
By tony   From:Gasgoo.com August 20 2007

Shanghai. August 20 (Gasgoo.com) - The sales of SUV (sports utility vehicles) in China reached 187,600 units, up 46 percent from a year earlier, according to latest statistics from China Association of Automobile Manufacturers.

SUV sales in July reached 29,300 units, up 100.8 percent from the corresponding month last year. In July the best-selling SUV brands are Hover (Great Wall), Tiggo (Chery), Honda CR-V, Tuscon (Hyundai) and Chengfeng Liebao. The above five SUV models sold 19,600 in July, representing 67 percent of total SUV sales in China.

Of all SUV sales in July, over 70 percent are low-emission SUV cars. In China's northwestern province Shaanxi provice, 2.5 liter SUV cars or smaller are particularly attractive to customers, Chinese media reported.

"People become interested in low emission SUV cars because they want to save oil costs," said Chen Chao, one of Chery's sales managers in Shaanxi province.

Statistics show that 2.0-2.4 liter SUV cars are most popular among Chinese consumers.