SAIC aims to sell 700,000 commercial vehicles this year

Shanghai. February 13 (Gasgoo.com) – Shanghai Automotive Industry Holding Co (SAIC) unveiled an ambitious plan to sell 700,000 commercial vehicles this year, according to a Shanghai Securities News report todday.

 

SAIC-GM-Wuling and Nanjing Iveco will two major contributors to the growth of SAIC’s commercial vehicle this year, the report said.

 

Last year, the SAIC group sold 553,000 commercial vehicles, up 20 percent from one year earlier. SAIC-GM-Wuling, the most important contributor to SAIC’s commercial vehicle sales, sold 520,000 mini-commercial vehicles last year, up 23.8 percent from one year earlier while SAIC-Iveco-Hongyan sold 24,000 trucks, up 69.7 percent year-on-year.

 

Early in January, the SAIC Group announced it had acquired a 50.32 percent stake of Shanghai Diesel Engine Co. (SDE) for 923.42 million Yuan ($127 million). Shanghai Electric Group Co Ltd, a company that formerly held 50.32 percent stake of Shanghai Diesel Engine Co., signed an agreement with SAIC to sell up its entire procession of Shanghai Diesel stakes to SAIC three days after it acquired Nanjing Auto.

 

"The deal will help Shanghai Diesel’s tap into its market potential and improve its competitiveness. It will also enhance SAIC's capability in commercial vehicle sector," SAIC said in an official announcement.

 

The acquisition of Shanghai Diesel will create a chance for SAIC to catch up in commercial vehicle sector. On the other hand, the deal will also deliver Shanghai Diesel from a difficult situation where it has been hamstrung by a narrow product portfolio coupled with scare orders from auto OEMs, according to SAIC board chairman Hu Maoyuan.

 

Shanghai Automobile Industry Corporation, or SAIC, has successfully defended No.1 position in China automobile industry by selling 1.69 million vehicles in 2007, up 25.8 percent from one year earlier, the company announced last month.

 

In passenger vehicle sales, SAIC sold 1.13 million units, up 24.3 percent year-on-year. Shanghai General Motors has consolidated its leading position in China’s passenger vehicle sales by selling more than half a million vehicles in 2007, while Shanghai VW sold 456,000 units and Ssangyong sold 136,000 vehicles.

 

The SAIC Group has recently held an annual conference on commercial vehicles business. Top executives from SAIC-Iveco-Hongyan, Shanghai Huizhong, Shanghai Sunwin and new acquired Shanghai Diesels and Nanjing Iveco came to the conference.