Chang’an Automobile (Group) Co, China’s fourth-largest automaker, intends to start selling its vehicles in Europe in 2013. “Chang’an started the overseas expansion strategy five years ago, beginning exports to developing countries with light commercial vehicles, including minivans,” said Zhu Huarong, Vice President of the company. “Now we are targeting the European markets and the United States market to make Chang’an a true international automaker from China. We are communicating with potential local dealers, recruiting talent, and getting approval for our vehicles in Europe right now,” Zhu said at the Frankfurt Auto Show. Chongqing-based Chang’an was the only Chinese automaker at the international show. The company showed four new models ― two sedans, a sport utility vehicle, and a fully electric car. By 2015, Chang’an plans to have 20% of its total sales in overseas markets, primarily with passenger cars. Currently, no more than 10% of its sales are outside China, mostly light-duty commercial vehicles. In the first eight months of this year, its overseas sales grew by 75% from a year earlier. “The EADO sedan, which was designed by our overseas R&D centers and is making its world premiere at the show, will be our strategic model in the European markets, as a car developed according to the high quality and design standards in Europe,” Zhu said. To prepare for its overseas expansion, Chang’an, the Chinese partner of Ford Motor Co, Suzuki Motor Corp, and PSA Peugeot Citroen, established research and development (R&D) centers in Turin in 2006, Yokohama in 2008, Nottingham last year and Detroit this year. Zhu also said that the company will invest at least CNY2 billion to launch a premium brand next year as part of its overseas expansion plan.

Italy’s Automobili Lamborghini Holding expects that by next year at the latest, it will be the first super sports car brand to have China as its biggest market, said President and CEO Stephan Winkelmann. In the first eight months, the company sold close to 200 of its powerful super sports cars in China, equal to the total for last year, when sales skyrocketed 150% year-on-year. Full-year 2011 sales are expected to hit 300 vehicles in China, Winkelmann said, adding that the new Murcielago model, which starts deliveries in October, will propel sales. As recently as 2007, Lamborghini only sold 28 cars in China, which wasn’t even in the company’s top 10 markets at the time. The sales boom of the past five years far exceeded the company’s expectations, said Winkelmann. By year-end, Lamborghini plans to have 20 dealers across the nation. “China has caught up with the U.S.” as a top market for premium car brands, said Zhong Shi, an independent auto analyst. “China has greater potential for sustainable growth. There are always ‘new rich’ and emerging wealth from all social backgrounds,” he added. Amedeo Felisa, CEO of Ferrari, earlier this year told China Daily that he believes China has the potential to be Ferrari’s second-largest market in the near future. The company expects to sell 600 vehicles this year in China, double last year’s figure, the China Daily reports.

SKF Group, the world’s top bearing maker by revenue, will put more resources into China’s automotive market in the next few years. The company plans to expand its global technical center in China and increase production capacity, said Tryggve Sthen, President of SKF’s Automotive Division. The company has a plant under construction in Jinan, capital of Shandong province, which is set to open early next year with some 500 employees. In a separate factory in Wuhu in Anhui province, SKF is adding capacity to mass-produce a new product line of bonded piston seals, designed for a new generation of automatic transmissions. The company will also revamp and expand its global technical center based in Shanghai. By 2015, the new operation will cover 3,500 to 5,000 sq m of space, at least five times the current area. The company aims to attract 400 skilled workers for the center, compared with about 20 people in 2010. SKF is working closely with local authorities in Shanghai’s Jiading district to contribute its technology to an electric car demonstration zone. “China is at the forefront in clean-energy development. We see clear ambitions and significant support from the government. We hope to be part of the process and ride the ‘green’ boom,” Sthen said.

BYD Co said it will start selling new e6 electric cars to private consumers in China starting at the end of October in Shenzhen. The model, powered by a lithium ion battery, can run up to 300 kilometers on a full charge and it takes about 15 minutes to restore 80% of the battery’s power through charging poles. The e6 sells for about CNY180,000 in Shenzhen after government subsidies. In the first half of this year, only four models were sold. Although local governments are keen on new energy vehicles, there are now only an estimated 10,000 electric vehicles on the road nationwide. Besides the e6, BYD also produces the F3DM dual-mode plug-in hybrid sedan as well as K9 electric buses. A righthand drive e6 will go on sale in Hong Kong in June 2012. In August, BYD partnered with Hertz Global Holdings Co to add e6 electric sedans to the car rental company’s fleet in China.

Huang Yi, Chairman of car dealer Zhongsheng Group, expects growth in the market for reliable second-hand cars to outpace new car sales in the coming years. “Right now we don’t even have a item on our income statement for second-hand sales … but this is going to be a huge and very important factor for us,” he said. “I think in the next few years sales of used cars will grow at more than 20%,” he added. The company has confirmed plans to open its first Jaguar Land Rover dealership, in Shandong province, next year, and approvals are pending for its first Volvo showroom in Fujian province. Zhongsheng plans to increase its number of showrooms from the present 114 to almost 140 by the end of this year and 180 by late 2012. All Zhongsheng dealerships that have been in business for more than a year are stepping into the second-hand car market, when they begin to build a stock of cars that have been traded for purchases of new cars. For now, most of these are sold on to the lightly regulated second-hand car trading markets, in which consumers do not have much trust. If dealerships would sell second-hand cars themselves, trust would rise, as they would offer a full maintenance history of the vehicle, as well as a warranty. Second-hand car sales account for about a third of revenue for most dealers in the U.S., while the percentage in China remains negligible. The second-hand vehicle market in China posted stronger sales growth in the first seven months of this year. More than 2.3 million second-hand vehicles were sold, an increase of 14.9% from a year earlier. The growth outstripped a 2.3% increase in new car sales, which totaled 10.5 million units during the period. Total revenue from second-hand vehicle transactions grew 12% to CNY10.6 billion. Out-of-town demand for used vehicles was particularly strong after cities such as Beijing adopted a numberplate-based quota scheme to limit vehicle numbers, curbing local demand.