China auto news of the week (Oct 29 - Nov 2, 2007)

China raises fuel prices by 9%-10%

Shanghai. November 1 (Gasgoo.com) – Oil product prices in China will raised by 9 percent or 500 yuan ($68) per ton starting today, China's economic regulatory body, National Development and Reform Commission announced on its official web site this morning. 

The price hike is made to reduce the widening gap between soaring global crude prices and China's domestic oil product prices, NDRC said in the announcement.

As a result, Chinese car consumers will have to additional pay 0.4 yuan ($0.054) per liter on gasoline or 0.46 yuan ($0.062) on diesel. The price hike will lift the monthly consumer price index (CPI) by 0.05 percentage point, NDRC said.

The cost of rail cargo and air travel will also be driven higher, but rail and public transport fares will remain unchanged.

The table below shows the recent changes of oil product prices in China.

Note: The table is made by Gasgoo.com

China issues production licenses for 20 vehicle models

Shanghai. November 1 (Gasgoo.com) The National Development and Reform Commission, China's all powerful economic regulatory body, has issued production licenses to 20 sedan models earlier this week.

The latest production license catalogue include 2008 Honda Accord, Mazd 2, MG, Roewe, Kia hatchback and Swift (1.5 Liter engine); the catalogue also includes the improved version of Nissan Geniss, Nissan Teana, PSA 206, Citroen C2, Zhonghua Zunchi and Zhonghua Junjie. These models will be launched by the end of this year or early next year.

The catalogue also includes a MPV model called COWRY, which is made by Chinese homegrown automaker Great Wall. Meanwhile, Wei Jianjun, president of Great Wall announced earlier this week his company obtained production license to produce to sedan called Jingling last week, according to the Beijing-based China Business Times.

Sinotruck to IPO in Hong Kong this month

Shanghai. November 2 (Gasgoo.com) -China National Heavy Duty Truck Group Corp., Ltd (CNHTC) plans to raise US$800 million from IPO in Hong Kong, Shanghai Securities News reported today.

 
CNHTC has completed transaction of 63.78 percent of its A-share assets to CNHTC (Hongkong) International Investment Co, Ltd earlier this year. In April, the transaction has been approved by China's State-owned Assets Supervision and Administration Commission, Ministry of Commerce and Securities Regulatory Commission.

The underwriters for Sinotruck’s IPO in Hong Kong are JP Morgan and China International Capital Corporation.

By the end of October, Sinotruck has achieved this year’s sale target of 80,000 units; in the first nine months, the company has achieved this year’s export target of 10,000 units, a company official said.

Unperturbed by piracy accusations, Great Wall starts production of Peri

Shanghai, November 1, (Gasgoo.com)-Great Wall Motor Co., a Chinese automaker that was accused to copy Fiat Panda city car, unveiled its ambitious expansion plan this week.

Great Wall held a celebration Monday to mark the occastion of its Peri compact car rolling off production line. On the same day, Great Wall started to use a new logo and a new passenger vehicle production facility.

"We'll make upscale small cars and we're going to change the popular idea that small cars are cheap and of low-quality," said Wei Jianjun, managing director of Great Wall on the press conference.

The company claimed that it spent three years developing its first car--Peri, which Fiat claimed a copy of its Panda. The home-grown automaker is China's largest maker of sport utility vehicles and pickups.

"There are no intellectual property violations whatever with our products and we have legal certifications from lawyers and intellectual property authorities," Mr. Wei told local media.

Priced in a range between 40,000 and 50,000 Yuan ( $5356-$6695 ),Peri is scheduled to hit the Chinese market by  December this year, and later it'll later go to overseas markets. Great Wall said it has sales networks or partnership dealers in more than 70 countries.

The company expects to sell 80,000 Peri vehicles by the end of 2008.

Italian automaker Fiat has initiated legal proceedings against Great Wall both in China and in Europe. Fiat expects to have the first court hearings in China in December and in Turin at the end of January, Automotive News reported,

At least 30% vehicles in Beijing do not meet EU IV emission standards

Shanghai, October 31, (Gasgoo,com)- At least 30 percent vehicles in Beijing do not meet the mandatory EU IV emission standards stipulated by city authorities, National Business Daily, a local newspaper reported yesterday.

Currently buses and many upper and middle segment sedans, like Passat, Honda CR-V, Honda Civic and MG 7 have already met this standard.

Prior to this move, Beijing implemented EU III standard starting on July 1 this year. Many other Chinese cities, including Shanghai and Guangzhou have also implemented EU III standards following Beijing this year. Beijing is the first city in China to implement the EU IV standards.

Mazda increases stakes in Chinese joint venture by 15%

Shanghai. October 30 (Gasgoo.com) – Japanese automaker Mazda Motor Corp has reached a purchase deal with FAW Mazda Motor Sales Co, Chinese media Beijing Morning News reported today.

Under the purchase deal, Mazda Motors will increase its stake in the joint venture up to 40% from 25%, the report said.

FAW Mazda Motor Sales Co was established in 2005 as a three-party joint venture between Mazda Motor Corp (25%), First Auto Works (5%) and its subsidiary' FAW Car Co (70%). After the purchase deal, Mazda Motor will hold 40% stake of the joint venture; FAW and FAW Car Co will each hold 56% and 4% of the joint venture.

Separately, FAW Mazda Motor Sales Co will transfer its sales of Mazda3 to the Chongqing-based Chang'an Ford Mazda Co starting on January 1, 2008. This means Mazda models made by Chang'an Ford Mazda and FAW will be sold in two separate networks in China since the beginning of 2008.

In addition, Chang'an Ford Mazda will start to produce Mazda 2 at its Nanjing plant and will also import Mazda 5 to China by the end of this year.