China Auto News of the Week (June 30 - July 4, 2008)

Dongfeng Citroen C-Quatre to go on sale in Sept.

Shanghai, June 30 (Gasgoo.com) Dongfeng Citroen, Dongfeng Motor's joint venture with PSA Peugeot-Citroen, launched its all-new premium hatchback C-Quatre in Shanghai on June 28. The China-made Citroen 4 (C4) model, a perfect mix of European styling and modern dynamics, will go on sale in China in early September.

The Dongfeng Citroen C-Quatre hatchback comes in three versions -- fashion, comfort, luxury, powered by a 1.6L engine and 2.0L engine for choice. The 2.0L 16V engine, also used in the C-Triomphe, adopts the continuously variable valve timing system (VVT) and can generate a power output of 108 kW and a peak torque of 200 Nm, which offers exceptionally pleasurable driving.  

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China to issue new standards of ELV recycling in 2008

Shanghai, June 30 (Gasgoo.com) China's industry authorities have started to amend the country's rules for the recycling of end-of-life vehicles (ELVs). The new standards regulating the disposal and recycling of ELVs are said to be in the pipeline now and will come out later this year, reported xinhuanet.com today.

The volume of in-use vehicles in China will reach 55 million by the end of 2008 and the volume of end-of-life vehicles (ELVs) will top 2 million this year. In 2001, China passed a law regulating the disposal and recycling of ELVs, but progress has been slow, with the rate of ELV dismantling just 10%. China also has established some ELV dismantling and disposal enterprises since 2005, but they are mostly mixed with used car sales networks, and many ELVs were resold through various channels after simple remolding.

China's auto production to slow down

The Chinese automobile industry has been growing at double-digit annual rates. But will it still continue?

CSM Worldwide Inc, an automotive industry research company of the US, says some signs indicate the growth will slow down in the near future.

CSM forecasts auto production focusing on light vehicles (vehicles with a total weight of 3.5t or less). According to its forecasts, Chinese production will reach 10 million units in 2010, but its year-on-year (YoY) growth rates will fall below 10% from around 2011, drop further to 5% in 2012, approximately 3% in 2013, about 2% in 2014 and remain flat thereafter.

Chinese automobile production exceeded seven million units as of 2007 and is continuing to rise by one million units every year. The output will total nearly 80 million units in seven years if it grows at the current rate.

China III standards in force today raise CV prices

Shanghai, July 1 (Gasgoo.com) The China III emission standards came into force nationwide as of July 1, pushing up the prices of commercial vehicles (CVs) in the Chinese market, said xinhuanet.com today.

The country's automakers have launched new products that meet the China III standards by using upgraded engines. Nanjing Iveco (Naveco) is set to sell its new light commercial vehicle Power Daily, which features the new generation the powerful 3.0L F1C engine and the second generation BOSCH common-rail electric injection system. The engine, capable of 107KW, can reduce fuel consumption by 10% and can be upgraded to meet the Euro V standards.

First 50 Chery hybrid taxis run on Beijing streets

Shanghai, July 1 (Gasgoo.com) In the days when fuel prices are soaring, a small number of gas-electric hybrid taxis running on the Beijing streets have arrested the attention of passengers and pedestrians alike, reported Beijing Evening News today.

This hybrid electric vehicle driven by BSG light hybrid power system were made by Chinese carmaker Chery Auto. The hybrid "Beijing Taxi" featuring the words "Hybrid Electric Vehicle" has the same yellow color and car body with a common taxi, but its brand logo has changed to Chery A5 from the previous Hyundai Elantra.

Fifty Chery A5 hybrids were delivered to seven taxi companies such as Xinyue (New Moon), Sanyuan, Yinjian in Beijing on June 21 as the first batch of "weak-hybrid" vehicles used in China's taxi market. The 50 hybrid taxis have started to run on Beijing streets for business. These Chery hybrids will be used to ferry athletes and spectators during the 2008 Olympic Games in the capital of China.

Dongfeng in talks with Ford over Volvo venture

FORD Motor Co has had exploratory talks with China's third-largest car maker, Dongfeng Motor Group, as a potential partner for Volvo, sources told Reuters yesterday.

And Ford also talked to French car maker Renault SA about selling Volvo, but the talks ended quickly due to price differences, sources close to the matter said.

Ford spokesman Mark Truby declined to comment directly but said: "We announced earlier this year that Volvo is not for sale and that we are focused on improving Volvo's business results."

Even though Ford has said it has no plans to sell Volvo, the auto maker has been having informal talks with interested parties, the sources said

China mulls higher tax on fuel-guzzler vehicles

Shanghai, July 2 (Gasgoo.com) China is preparing to levying additional taxes on high fuel consumption vehicles, while the relatively fuel efficient, new-energy vehicles will be given a tax advantage, a government official said on an industry conference on the weekend.

"Given that fossil fuels are a limited source of energy and that fuel prices could rise further, China's National Development and Reform Commission (NDRC), the country's top economic planner, will work closely with financial and taxation departments to make adjustment in tax policies for vehicles with different energy consumption rate, " said Li Wanli, Director of the Industrial Policies Department of NDRC.

Guangzhou Honda launches new Fit in China

Shanghai, July 3 (Gasgoo.com) Guangzhou Honda Automobile Co, one of Honda's joint ventures in China, begun to sell in China the all-new, completely re-designed Honda Fit on July 2. Price of the model lineup will range from 86,800 yuan ($12,666) to 129,800 yuan in the Chinese market.

This second-generation Fit features a body length of 3,900 mm and width of 1,695 mm, which is 20 mm wider and 55 mm longer than its predecessor and the front pillar has been moved forward to create a more spacious interior.

Engine options include a 100 hp 1.3-litre i-VTEC engine that delivers maximum output of 73kW (100PS) and a new 1.5-liter i-VTEC engine, capable of 88 kW (120 hp).

Geely Panda minicar with Eagle logo to sell in Sept.

Shanghai, July 3 (Gasgoo.com) Geely Auto recently announced that its all-new Panda model will carry the new "Geely Eagle" logo when the mini-car goes on sales in September. Last week, Geely Auto began to set up an independent sales network, according to sina.com.cn. The Panda minicar of the Geely Eagle series will sell for 40,000 yuan ($5,832), a low price to rival the popular Chery QQ and other cheap mini-cars in China.

The Panda mini-car is the first all-new model after Geely Auto recent strategic transition and also the first "Geely Eagle"-labeled model, said Liu Jinliang, general manager of Geely's sales company. It marks the debut of the "Geely Eagle" series, which will be expanded each year with the growth of Geely Auto, China's largest privately owned automaker.

Uruguay-built Chery SUVs sell well in Argentina

Shanghai, July 4 (Gasgoo.com) The Uruguay-based Chery Socma, a joint venture of China's Chery Auto, Argentina Socma Group and Oferol of Uruguay, announced on July 2 that the Uruguay-built Chery Tiggo SUVs have been selling well in Argentina since they entered the market one month ago, reported Economic Information Daily today.

At the promotion event held by Chery Socma for Chery Tiggo's entry into the Argentine market, Zhou Biren, general manager of Chery Auto International Company, said that the launch of Chery Socma marked the first facility operation of China's auto industry in South America. Last year, Chery Auto formed a joint venture with Argentina's Socma Group to assemble SUVs and compact cars in Uruguay for sale in South America's Mercosur auto market.

Taiwan automaker to export cars to new markets

Taipei, July 4, 2008 (CENS) -- Taiwan-based automaker China Motor Corp. (CMC), in partnership with Mitsubishi Motors of Japan, will begin exporting locally assembled cars to new markets such as Central Asia and Africa this year, according to Kenneth Yen, CEO of the Yulon Group and chairman of CMC.

Yen made the statement at CMC shareholder meeting, also stressing that CMC is expected to become one of Mitsubishi's overseas production bases.

Last year, CMC exported around 4,100 locally assembled cars, up 243% from 2006, including over 1,200 Mitsubishi Zinger commercial vans and about 2,0000 Delica commercial vans (under Dodge's brand logo to Mexico).

China sales of Audi up 23% to 60,509 units in H1

Shanghai, July 4 (Gasgoo.com) Audi, Volkswagen's premium brand division, sold a record 60,509 luxury cars in China in first half of 2008, up 23% from one year earlier, Reuters reported today. The German carmaker plans to boost its capacity in its joint venture in the country to meet local customers' rising demand for its high-end models.

China sales of the German-produced long-wheelbase version of the Audi A6 rose by 18% to 42,969 units and the Chinese-made Audi A4 posted a 20% rise to 10,819 units. Growth rates in the Chinese market for larger, more luxurious Audi models have become even more robust.

The Audi A8 sedan and Q7 full-size SUV (sport utility vehicle), both sold in China as imported Audi cars, saw demand surge. A total of 2,431 units of the Audi A8 were sold in China, 50% more than the previous period, while the Audi Q7 sales rose 90% in the six-month period to 2,663 units.