China Auto News of the Week (January 7-11, 2008)

 

 

 

Shanghai. January 11 (Gasgoo.com) – Volkswagen has sold 910,491 vehicles in Chinese market in 2007, up 28 percent from the previous year’s 700,000, Volkswagen China announced yesterday.

 

In 2007, Volkswagen sold 780,784 units of VW-badge vehicles, including 9,067 imported VW vehicles, up 24 percent from one year earlier. Volkswagen also sold 101,996 units of Audi-badge vehicles, which includes 8,828 imported units, up 25 percent from one year earlier.

 

FAW-VW sold 459,359 vehicles in 2007, of which Jetta alone accounts for 43.49 percent of the total volume. Despite the rising sales, Jetta and Audi were also the main contributors to FAW-VW's profit gains.

 

Shanghai VW comes as the third biggest seller in Chinese market, which sold 436,343 vehicles in 2007. Four models, Passat, Santana, Santana 3000, Polo represent 91.07 percent of its total sales.

 

"VW is confident to sell one million vehicles in 2008,” said Dr. Winfried Vahland, President and CEO of Volkswagen China.

 

 

 

 

Shanghai. January 10 (Gasgoo.com) – Beiqi Foton Motor will transfer 264 million shares of its state-owned equity to Beijing Automobile Industry Holding Corporation (Beijing Auto), the Shanghai-listed Beiqi Foton announced today.

 

The 264 million shares, formerly owned by Beiqi Motorcycle Manufacturing United (a subsidiary of Beijing Auto), will be transferred to Beijing Auto as state-owned equity transfer.

 

Before the transfer, Beijing Auto holds 31.98 million shares of Beiqi Foton’s equity; after the transferring of the 264 million shares, Beijing Auto will hold 296 million shares or a 36.43 percent stake of Beiqi Foton.

 

The transfer is subject to approval from China Securities Regulatory Commission.  

 

 

 

Shanghai. January 9 (Gasgoo.com) – China’s auto exports may reach 800,000 units in 2008, and of which passenger vehicle exports may reach 450,000 units, China Association of Automobile Manufacturers predicted in a report released today.

 

In most conservative estimate, China’s vehicle exports can reach 1.3 million-1.5 million by 2010, and of which passenger vehicle export may reach 800,000 units to one million units, CAAC predicts in the report.

 

Over the past eight years, China’s automobile exports have grown ten times. This is an extraordinary achievement for the country, CAAC says.

 

In 2007, China exported half a million vehicles overseas, up 95 percent from one year earlier, according to CAAC.

 

 

 

Shanghai. January 9 (Gasgoo.com) - Great Wall Motor Company has filed an application to China Securities Regulatory Commission for listing in China’s A-share market and is still pending on official approvals, Beijing Youth Daily reported today.

 

The automaker plans to raise around RMB 2.7 billion (371 million) from its IPO in A-share market, the newspaper said, but it did not say when the A share IPO plan can become a reality.

 

About RMB 530 million ($72.6 million) raised in this initial public offering will be used in the research and development of automatic transmission system and RMB 156 million ($21.37 million) will be used to develop high-performance diesel engine technology.

 

In addition, RMB 743 million ($101.78 million) will also be used to fund a national technology center; RMB 363 million ($49.72 million) will be used to develop a high-end SUV model; and RMB 381 million ($52.19 million) will be used to develop a C class sedan model and RMB 580 million ($79.45 million) will be used to construct a vehicle proving ground.  

 

In 2007, the company sold 65,000 units SUVs, which represents 17.5 percent of China’s SUV market, and 54,000 pickups, which represents 30 percent in China’s pickup sales. In the same year, Great Wall exported 48,000 vehicles to100 countries and regions around the world.

 

In late 2003, the company raised HKD 1.7 billion ($218 million) via its initial public offering in Hong Kong and HKD 1.6 billion ($205 million) through its additional offerings in May 2007. The fund raised in Hong Kong IPO has been used for building new plants and developing new models.

 

 

 

 

Shanghai. January 9 (Gasgoo.com) – China’s domestically made car prices has dropped 5.7 percent in 2007, a price decrease similar to the year of 2006, according to a survey conducted by Cheshi.com.cn.

The survey finds that A0 class cars (compact cars) dropped 6.6 percent; A class cars (mid-segment cars) dropped 6.5 percent while B class cars experience a 4.8 percent and C class a 2.9 percent price drops.

In 2007, the prices of A00 class vehicles (subcompact cars) dropped 3.1 percent, a price cut similar to that of 2006. Chery QQ, Changhe-Suzuki Beidouxing, Changan-Suzuki Alto are in this segment.

Among the A0 class vehicles, Chevrolet Lova, AVEO, Citroen C2, Fiat Palio, Kia Rio have seen more than 10 percent drop in prices; Honda Fit, VW Polo, Peugeot 206, Chevrolet Lova and AVEO have experienced price falls of varying margins.

In 2007, A class cars (mid-segment) price dropped 6.5 percent, which is slightly smaller than the drop in 2006. Starting in March, Buick Excelle began to cut prices; in the first half year, Volkswagen, Peugeot, Citroen, Chery and Geely announced price cuts and in the second half year, Hyundai Cerato, Elantra and new Peugeot 307, Nissan Tiida lowered prices.

Also last year, B class (mid-high segment) car prices dropped 4.8 percent, a price fall slightly smaller than a year before. Chevrolet Epica, Hyundai Sonata, Kia Optima, S-MAX, Mazda 6, Audi A4 in this segment has seen price drops.

The C class cars (luxury segment) prices dropped 2.9 percent, more significant than a year earlier. Among C class cars, the prices of BMW 5 series, Benz E class dropped 6 percent, which is more significant than other models in this segment.

 

 

 

 

Shanghai, January 8, (Gasgoo.com)-Shanghai Delphi Automotive Air Conditioning Systems Co. (SDAAC), China's largest auto air conditioning system supplier, has signed a three-way joint venture deal with two partners in Beijing. The new factory to be built will have an annual capacity of 200,000 auto air conditioners, local media Auto Weekly reported yesterday.

 

Under the agreement signed on December 28, 2007, Shanghai Delphi will hold a 51 stake in the joint venture while Beijing Automotive Industry Holding Corp (BAIC) or Beiqi will hold a 40 stake and a local auto parts supplier Beijing Guanghua Shiyuan Co will hold the remaining 9 percent.

 

"Delphi will bring its state-of-art technology in automotive parts manufacturing and management expertise to the joint venture," said Scott Graham, director of Asian-Pacific Operations of Delphi, adding that Beiqi has better understanding and networks in the local market.

 

This is also the 8th tie-up that  Beiqi has reached in auto parts business in 2007. The state-run automaker has been striving to establish its own parts supplying network. During the past year, Beiqi has signed eight joint venture contracts with other players, like Delphi and Lear Corp.

 

 

 

Shanghai. January 7 (Gasgoo.com) – The second plant of Zhengzhou Nissan will start construction in the first half of 2008 and be finished by earlier 2009, Chinese newspaper Beijing News reported today.

 

The second plant, once finished by earlier 2009, will have an annual capacity of 100,000. With the capacity of the second plant, Zhengzhou Nissan will have a combined capacity of 200,000 vehicles by 2009, according to the newspaper report.

 

"By 2009, Zhengzhou Nissan will launch four to five new models in Chinese market, including the redesigned Palatin and a small MPV model, both were scheduled to be launched in 2008” said a company source.

 

Zhengzhou Nissan is three-party joint venture, in which Nissan Motor holds a 30 percent stake, Dongfeng Motor, a 51 percent stake and Zhengzhou Light Vehicles hold a 19 percent stake.

 

Zhengzhou Nissan produces SUV Palatin, MPV Yumsum and pickup Nissan D22. Nissan Motor’s another joint venture in China, Dongfeng Nissan, produces Bluebird, Sunny, Teana, Sylphy, Livina Geniss.