China Auto News of the Week (May 19 - May 23, 2008)

Chengdu auto production shut down after earthquake 

Shanghai, May 15 (Gasgoo.com) The 7.8 earthquake on Monday (May 12) in the Chengdu area of Sichuan has shut down production of local and JV auto makers there. The Changan, Toyota, VW and other plants were evacuated during the day. The earthquake has claimed a death toll of more than 12,000 people, thus making the evacuations and work suspension at the factories a must choice for safety. 

The Toyota plant (the plant produces the Prado SUV and Coaster mini bus) decided to cancel one shift on Tuesday to inspect damage to the factory, whilst the Chang'an Mazda, Ford, and Chang'an Motors factories were evacuated for the day. A FAW-VW plant was also evacuated. Nissan, G.M. and Honda operations in Sichuan were apparently not effected by the quake. 

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Over 10 Chinese automakers to jointly develop DCTs

Shanghai, May 15 (Gasgoo.com) More than 10 Chinese automakers will join hands to develop automatic transmissions, especially the double-clutch transmissions (DCT), in an effort to reduce the import of these auto parts. The National Development and Reform Commission (NDRC), China's top economic planner, will coordinate this research and development (R&D) project.

The joint R&D project will be carried out as a domestic joint venture (JV) involving more than 10 automaking companies in China such as FAW, SAIC, Dengfeng, Changan, Brilliance, Geely and Chery. The business of the JV, named "China United Development Industry Co. Ltd.," will be the development of automatic transmissions, focusing on the double-clutch transmissions (DCT). An insider of Changan Auto said his company will have 10% stake in the joint venture.

China's top 10 best-selling sedan brands in Jan-Apr

Shanghai, May 16 (Gasgoo.com) China sold a total of 1.2 million sedans from January to April this year, up 61.27% from a year earlier, according to China Association of Automobile Manufacturers.

Santana was the top selling brand with 69,214 units sold, followed by Buick Excelle and Jetta with 62,750 and 61,202 units sold respectively.

Audi to introduce eco-friendly TDI sedan into China

Shanghai, May 19 (Gasgoo.com) Audi AG will introduce soon to China more eco-friendly and energy-efficiency vehicle models including the new TDI (Turbo Direct Injection) disel sedan, reinforcing the carmaker's eco-friendly vehicle concept.

R8 V12 TDI: FAW-Volkswagen says that at present Audi AG has introduced into the Chinese market 14 models with the FSI engine, including the A4, A6L, Q7, A8L, TT, R8, and especially the A5 that debuted at 2008 Beijing auto show. These models cover 60% of the existing models on sale. Audi AG will also introduce to China more eco-friendly and energy-efficiency vehicle models including new TDI (Turbo Direct Injection) disel sedan in the near future.

Iran Khodro to launch a new car model both in Iran and China

Shanghai, May 21 (Gasgoo.com) It's rumored that the tie-up between Iran Khodro Industrial Group (IKCO) and Jinhua Youngman Auto may be on the verge of breaking down, but actually the largest Iranian automaker is to launch a new car model here in China and in Iran simultaneously.

"The cooperation between Iran Khodro and Jinhua Youngman is still going well, not ended, not suspended," said S. K. Hojjat, General Manager of Iran Khodro China, adding that chief executives of both sides met last October and decided that a new model code-named X12 will be built in their joint venture and then be launched both in the Chinese and Iranian markets.

"It's designed and developed independently by Iran Khodro," stated Mr. Hojjat. The X12, priced lower than 100,000 yuan ($14,300) for the basic model and a little higher than 100,000 yuan for high-end models, is scheduled to hit the Chinese market in early 2009.

Zhengzhou Nissan to use Nissan sales network for export

Shanghai, May 22 (Gasgoo.com) Zhengzhou Nissan Automobile Co., Nissan Motor Co.'s commercial vehicle venture in China, plans to export its vehicles through Nissan's global LCV (light commercial vehicles) sales network. Therefore, the sales of the Nissan-branded vehicles will not be conducted by Zhengzhou Nissan, which will be responsible only for the sales of Dongfeng-branded vehicles.

As scheduled, the exports by Zhengzhou Nissan will make up about 60% of its all sales by 2010, and its exports will reach more than 100 countries, from the current 20 or so. This means that a powerful sales network will play a key role in boosting the joint venture carmaker's export business.

China's top 10 CV makers in April

Shanghai, May 22 (Gasgoo.com) China's top ten commercial vehicle (CV) makers sold a total of 222,900 vehicles in April, representing 70.15% of the total CV sales in the country that month, according to a report from China Association of Automobile Manufacturers

Beiqi Foton stays No. 1 player in April with sales of 46,086 units. Dongfeng Motor and FAW continue to take the second and third places with 34,007 and 27,016 units sold respectively. 

Brilliance hopes to build finance unit with GE Finance

Shanghai, May 22 (Gasgoo.com) China's Brilliance Auto is set to open an auto financing unit in conjunction with GE Finance Company some time in October this year, Beijing News reports today.

"We have reached an agreement on most details and the application will be submitted to authorities for approval in June," said Brilliance Auto chairman Qi Yumin, adding that the new firm is expected to open in October if all goes well.

China's auto industry faces challenges from India

Shanghai, May 23 (Gasgoo.com) According to the latest research by Roland Berger Strategy Consultants, the annual sales of cars priced below 10,000 euros will reach 18 million units by 2012,  at least 4 million units more than the current figure.

Low-price cars have become a new favorite buy in the emerging market. Western auto-making giants have been looking for their way out in the global auto markets, and India, as an emerging low-cost market, has shown them a glimmer of hope.

Since mid-2007, global auto-making giants such as Ford, Nissan, Honda, Hyundai, Volkswagen, Daimler-Chrysler, have boosted their investment in India, and this trend is moving fast forward. The Indian government predicts that the country's auto industry will attract multi-billion-dollar investment in 2008, and there will be 20 manufacturers of passenger vehicles in India by 2010.

Volvo mulls introducing a low-cost truck to China

Shanghai, May 23 (Gasgoo.com) Volvo is aiming to further tap into Chinese heavy truck market by launching a new low-price truck within 4 years, a local Sweden newspaper reported on Tuesday.

Teknik newspaper reported that Volvo hopes to compete with Chinese manufacturers by halving the price for its truck lines, which are now sold between 700,000 and 800,000 kronor ($118,000 and $135,000) in China. Currently heavy trucks built by local Chinese truck makers only cost around 250,000 kronor.