Short news automotive
Nov-21-2013 By : agxadmin
- Electric-bus maker BYD has employed only 40 workers at its Los Angeles plant and been fined USD100,000 for violating the minimum wage law. When the project was launched, hundreds of new “high-paying green-collar jobs” were expected to be created. But three-and-a-half years after its initial promise, the company has employed fewer than 40 workers in Los Angeles, and at least five of them are temporary Chinese workers being paid less than USD8 an hour in yuan, which is below California’s minimum wage. BYD is to argue in court that Chinese workers on legal work visas are not subject to state labor laws, including the minimum wage. BYD continues to court transport officials in the U.S. to win contracts for electric buses.
- Dongfeng Motor Group is still weighing the benefits of investing in loss-making PSA Peugeot Citroen. PSA is preparing a €3 billion capital increase, in which Chinese partner Dongfeng and the French government would each contribute €1.5 billion and acquire a 20% to 30% stake. “If we can complement each other’s advantages, if we can achieve synergies, we may go ahead to do it. Otherwise, we would not do it,” Dongfeng’s General Manager Zhu Fushou suggested.
- Statistics from the China Association of Automobile Manufacturers (CAAM) show that in the first nine months, combined vehicle sales by domestic brands increased 12.14% to 5.13 million units, accounting for 39.89% of the overall market, a drop in share of 0.67 percentage points from last year. Surviving the fierce competition, especially after the international automakers entered the lower-end segments, domestic automakers should continue to invest heavily to improve product quality, said analysts.
- Sales of major Japanese carmakers Nissan, Honda and Mazda rose strongly year-on-year in China last month, recovering from the sharp drop in deliveries which were dented by last year’s consumer boycott of Japanese brands. Nissan saw sales soar 128% year-on-year to 114,700 units in China. Honda increased its deliveries 211.6% to 75,150 units, and Mazda sold 17,904 units, up 88% from a year earlier. Toyota had reported an 80% sales increase. Japanese carmakers are hoping the Guangzhou Motor Show from November 21 to 30, will drive sales to meet their annual targets as south China is their strongest market.
- FAW is to build an assembly plant in Algeria with an initial investment of USD61 million to produce 10,000 vehicles per year under an agreement with private Algerian firm Arcofina. Arcofina will own 51% of the plant and FAW 49%, with the aim of reducing the Chinese manufacturer’s share to 40% after three years.
- Beiqi Foton Motor Co, the largest commercial vehicle manufacturer in China by sales, is among truck manufacturers eager to capitalize on the further urbanization of China. During the first eight months, Foton sold 73,900 heavy trucks, up 27% from a year ago. In addition to heavy-duty trucks, Foton is also a major manufacturer of electric buses in China.
- In a bid to ease traffic jams and cut air pollution, Beijing is likely to start charging congestion fees in the downtown area in 2015 at the earliest.
- To speed up the industrialization of new-energy vehicles, China has launched 25 technological innovation projects and will allocate CNY4 billion central funding as a subsidy, Su Bo, Vice Minister of Industry and Information Technology, said during the Green Industry Conference 2013 held in Guangzhou from November 7 to 9. China gives buyers of new-energy vehicles a bigger subsidy than any other country, amounting to about CNY120,000.
- General Motors has decided to move its international headquarters from Shanghai to Singapore in the second quarter of next year, GM said. The Shanghai office with 250 employees will cover operations in China which is GM’s largest overseas market with total sales of around 2.8 million vehicles last year. GM has 12 joint ventures and two wholly-owned firms in China, employing 55,000 people. In 2004, GM had moved its Asia-Pacific regional headquarters from Singapore to Shanghai.
- Volkswagen will recall more than 207,000 sport-utility vehicles (SUVs) sold in China over a possible defect in the lights. The car maker is also to recall 640,390 cars to fix gearbox flaws in the Audi, Tiguan, Golf, Passat and Lavida models, starting on November 25. It said mineral oil used in dual-clutch gearboxes could cause electronics to malfunction and lead to overheating and security problems.
- Toyota has opened its fifth and biggest overseas research and development (R&D) center in China, covering 2.3 million square meters. The USD689 million Toyota Motor Engineering & Manufacturing (China) Co’s scope is to localize hybrid power train solutions for China as well as improving Toyota’s traditional internal-combustion engines and continuously-variable transmission. The launch of TMEC also aims to reinforce Toyota’s commitment to the market.
- The price of a Shanghai car plate dropped nearly 10% to CNY75,717 in the November auction, down CNY8,006 from last month. The lowest winning bid fell CNY6,800 to CNY75,500. Following the introduction of a ceiling in April, the average price for a Shanghai car plate dropped from a record high of more than CNY90,000 in March to CNY73,492 in September. Though the latest auction had just 8,500 car plates – 500 less than usual and 1,500 down from last month’s supply – the number of bidders increased by 32% to 38,220.
- The city of Lanzhou, capital of Gansu province, introduced a two-month traffic restriction in its urban center to curb severe winter pollution. Cars will be banned from roads from 7 am to 8 pm on alternate days up to January 10 depending on whether their number plates end in odd or even numbers.
Short news automotive
Oct-24-2013 By : agxadmin
- Ford’s Asia-Pacific President David Schoch said China’s top seller of SUVs – Great Wall Motor – is the one company to watch. He made the remarks at Ford’s headquarters in Dearborn, Michigan. “They seem to be coming up with good designs and quality, and they’ve started to export.” Great Wall Chairman Wei Jianjun has signaled Great Wall will eventually outsell Chrysler’s Jeep globally and wants to double sales over three years to 1.3 million vehicles by 2015. Ford is on a growth path of its own in China and expects to double its quarterly market share in less than two years.
- China’s auto market expanded 19.7% in September to 1.94 million passenger cars and commercial vehicles, helped partly by a huge gain for Japanese carmakers, according to the China Association of Automobile Manufacturers (CAAM). The year-on-year growth was the highest since January when the annual comparison was skewed by the week-long shutdown of showrooms during the Lunar New Year holiday that fell in January last year but February this year. On an annual basis, Japanese car brands scored the biggest gain in the passenger car segment last month and took 17.5% of the market.
- Shanghai car plate prices rose for the first time in seven months at the October auction, after a price ceiling on first-round bids was removed. The average price was CNY83,723, said auction organizer Shanghai International Commodity Auction Co, up CNY10,231 – just under 14% – on last month. The price ceiling is now only triggered by price hikes of between 3% and 6%. A spike of more than 6% will result in a two-month imposition. For the next two months the upward limit will be set at CNY74,900 – the weighted average of prices in September, August and July. 10,000 plates were auctioned this month, 1,000 more than usual, and the number of auction participants dropped 18% to 28,887.
- The auto industry has mixed views on the possible impact of the opening of the free trade zone (FTZ) in Shanghai. “The most likely influence on the auto industry will be to boost exports,” Industry Analyst Zhang Zhiyong said. Gu Feng, CFO of SAIC Motor Corp, added that “the zone can help cut operating costs and offer a better investment and financing channel.” SAIC’s subsidiary in the zone is expected to help cut export costs by 20% due to the zone’s preferential policies. The company will transfer its import and export operations to the zone.
- The biggest-ever Wuhan Motor Show was held this month. First created in 1995, the show is in its 14th year and has established its name as the most influential and attractive auto event in the central region. The six-day exhibition this year closed on October 23, by which time it is expected to have drawn 400,000 visitors. About 300 exhibitors showcased some 600 models. Total annual production capacity of automobiles in Wuhan is expected to reach 3 million units in three to five years.
- Dongfeng’s new-energy vehicle plant recently broke ground in Wuhan. With a planned annual production of 160,000 units and first-phase investment of CNY2.4 billion, the facility is scheduled to be operational by the end of 2014. The plant is expected to strengthen the automaker’s capability in innovation on new-energy vehicles, said Zhu Fushou, General Manager of Dongfeng Motor Corp. Dongfeng plans to have an output of 100,000 heavy-duty hybrids by 2015 and by 2020 will have energy-saving and new-energy vehicles that compete with conventional vehicles.
Short news automotive
Sep-26-2013 By : agxadmin
- Car horns are used 40 times more often in China than in Europe. That was one of the lessons French carmaker PSA Peugeot Citroen learned when it expanded in China. “In Europe, a car horn is used 10,000 times on average,” Pierre-Frédéric Lebelle, head of the company’s Shanghai-based China Tech Center, told Le Monde. “In China, it’s 400,000 times.” Peugeot is not the only carmaker adapting its horns to Chinese tastes. Ford also came up with an electronic horn for its Chinese customers.
- A man in Shenzhen has been making a living by crashing cars for nearly three years, averaging to one crash every three days. The man, surnamed Li, filed 334 insurance claims between the end of 2010 and May 2013, costing insurers millions of yuan and pocketing some CNY357,000. Li took advantage of slow traffic during the morning and evening rush hours, when he needed to accelerate only a little to bump the car ahead, thereby avoiding major injury. He then bribed mechanics to increase the damage estimate on the invoice, pocketing the difference.
- Shanghai opened China’s first electric car rental outlet. The store in Jiading district, where the Electric Vehicle International Demonstration Zone is located, was launched by Shanghai-based eHi Auto Services Co which aims to deploy 200 electric cars in the city this year. Customers can rent 20 Roewe E50 electric cars made by SAIC Motor for CNY149 each daily, cheaper than renting gasoline models of the same size. The company will provide free recharging services at the electric car rental outlet. Another two outlets will open this year in Jiading with more planned for other districts in the city.
- In 2012, Mercedes-Benz sold 196,000 vehicles in China, its third-largest market. Though sales increased 1.5% from the previous year, it was only a fraction of the growth of its main competitors. “That was a lesson for us that if you want to be successful in China, you have to focus on China – China’s needs and China’s customers. So we need a change,” Nicholas Speeks, the new President and CEO of the company’s China operations said. A new integrated sales company established in March is expected to boost sales. Mercedes-Benz is opening 75 new dealerships this year in 36 new cities, 45% of which will be third-or fourth-tier cities. By the end of 2013, there will be 337 dealer outlets covering 151 cities.
- The increasing number of vehicles on China’s roads also requires growth in road assistance services, according to Yukio Ito, CEO of Allianz Global Assistance China. The company is developing a one-stop service that integrates roadside assistance with car insurance and warranties.
- Honda Motor is planning to produce Acura cars in China with Guangzhou Automobile starting in 2016 in an effort to tap growing demand for upscale vehicles. Because of high tariffs on imported luxury cars, it is difficult to generate volume unless a carmaker produces the cars in China. Audi, Mercedes-Benz and BMW all produce models in China with local partners. Demand for premium cars in China is likely to reach 2.7 million a year by 2020, a level that would allow China to displace the United States as the world’s biggest market for upscale cars.
- Local dealer Fortune Dragon has introduced the Italian Tazzari Zero electric vehicle to Hong Kong. With a top speed of 95 km/h and a range of 145 kilometers on one charge the two-seat vehicle can be registered only as a quadricycle, which is not allowed on highways. A upgraded model is classified as a passenger car, but is priced at a hefty HKD350,000. Electric-powered vehicles remain a niche market in Hong Kong, despite various incentive programs. As of the end of April, only 443 of the 700,000 registered vehicles in the city were run purely on electricity.
- Vehicle imports slumped 10.7% in the first half, to 526,000 units, as the domestic demand slowdown of the past two years drove up inventories of foreign cars. It was the first half-year contraction since 2006, when China implemented its World Trade Organization (WTO) commitment to lower the import tariff for vehicles to 25%. As imported vehicle sales are still increasing this year, this shows that dealers are reducing their high inventories, according to Wang Cun, Senior Manager of China Automobile Trading Co, the country’s largest vehicle importer. By segment, sport utility vehicles (SUVs) continued to dominate imports, with 61% of overall sales.
- Auto production and sales reached new highs in the first half, hitting 10.75 million and 10.78 million units, respectively, data from the China Association of Automobile Manufacturers (CAAM) showed. But domestic brands have seen their market share shrink due to rising competition from foreign brands and tightened vehicle ownership regulations. Chinese passenger vehicles accounted for 41.2% of total passenger vehicle sales in the same period.
- Foreign carmakers are reaping exorbitant profits selling imported luxury cars in China and should face an anti-trust investigation, Xinhua news agency said as some imported cars were twice as expensive in China than in overseas markets. But Volkswagen’s luxury division Audi said vehicle prices in China were comparable to other countries once taxes and other factors were taken into account. China has become a key market for the makers of luxury cars, with 2.7 million expected to be sold each year by 2020, overtaking the United States as the world’s largest market. The Xinhua report said tariffs on cars brought into China from abroad are 25% for any type of car. There is also an additional VAT of 17% and a consumption tax based on engine size.
- BMW Brilliance Automotive is recalling 143,215 5-series cars made in the three years from August 2009 over power steering defects. The planned recall comes after BMW in late July failed to get Chinese government approval for a CNY9.2 billion plant expansion in Shenyang, Liaoning province. China’s Environmental Protection Ministry said it had rejected the proposal as it failed to pass environmental tests.
- Privately-owned automaker Chery will open its new plant in Brazil this year. In 2011, Chery Auto started to build the plant in the city of Jacarei in Sao Paulo state with an investment of CNY2.45 billion. The company has introduced several models to Brazil including the QQ, Cielo and Tiggo, which won the country’s title “SUV of the Year” in 2010. In July, police in Sao Paulo started using Celer models, the first time that Chery cars have been used for public service in Brazil. Chery has 80 dealers in the country.
- Brilliance China Automotive, the Chinese partner of BMW, posted a 52% rise in first-half profit from a year ago to CNY2.03 billion, driven by a 60% increased profit contribution from its joint venture BMW Brilliance. Revenue for the period fell 8.5% to CNY2.57 billion, dragged down by a 12.1% drop in minibus sales. The joint venture sold 105,692 units in the six months, an increase of 30.8% from the same period last year. A total of 63,536 5-series cars were sold, a rise of 28.6%, while the BMW 3- series posted a 57.8% growth in sales to 32,126 cars.
- Luo Lei, Deputy Secretary General of the China Automobile Dealers Association (CADA), said the Association has been collecting data for the National Development and Reform Commission (NDRC) to check whether carmakers were making excess profits and setting minimum retail prices for dealers. “However, there is no clear sign that the government will soon be making it the next target of its ongoing anti-trust campaign,” he said. “The auto industry is just one of many under close watch.”
- Great Wall Motor’s first-half net profit rose 73.7% year-on-year to CNY4.09 billion as revenue increased 44.5% to CNY26.4 billion, with car sales growing 41.3% to 370,301 units. Domestic sales rose 51.6% to 328,387 units, of which 169,706 units were SUVs. Its overseas sales came under pressure as a result of competition, with exports dropping 7.8% to 41,914 units. The company said it expected domestic car sales to continue to grow despite concerns over an economic slowdown. In the next two years, the company plans to launch three new SUV models.
- Tesla Motors plans to enter the Chinese market have stalled after a businessman in China claimed trademark rights to the name. Its first shop-front in China, at the Parkview Green Fangcaodi mall in Beijing, remains boarded up. Tesla has still to complete product registration with Chinese authorities enabling the sale of the battery-powered Model S. Zhan Baosheng, a businessman in Guangdong province, owns the “Tesla” trademark in China, according to his agent Jinda Trademark, and runs a website using the Tesla China domain (www.teslamotors.com.cn). China has rules that protect globally-renowned brands, but that might not apply in the case of relatively new companies such as Tesla.
- Shanghai is considering introducing a congestion charge on motorists at peak times, in a bid to reduce traffic in downtown, but traffic experts believe that it would be difficult for the city to enforce the policy. The city has about 1.77 million registered private cars, and the number is increasing by 200,000 annually.
- BYD’s first half net profit surged to CNY426.9 million, 26 times higher than the CNY16.3 million a year earlier. Revenue climbed 13% to CNY24.2 billion. Sales of the company’s mostly gasoline-powered cars jumped 24.7% in the first six months to about 250,000 units, outpacing the 12.3% overall growth of China’s auto industry. Still, BYD expects profits to fall to between CNY3 million and CNY50 million in the third quarter, affected by a seasonal downturn in car sales, a drop in mobile-phone orders in an increasingly competitive smartphone market, and continued losses from the new-energy arm of the business.
- Mercedes-Benz will launch around 20 new or upgraded car models in China over the next two years. Daimler’s new China General Manager Hubertus Troska said the company will spend €2 billion over the next two years as it seeks to boost sales of Mercedes-Benz cars in China by a third to more than 300,000 cars a year by 2015. Last year, Mercedes-Benz sold slightly more than 200,000 cars in China, currently its No 3 market behind Germany and the U.S. The company also launched its redesigned E-class sedan in China.
- The 16th Chengdu Motor Show was held in August in the New International Convention & Exposition Center in Chengdu Century City with more than 400 carmakers, parts makers and dealerships participating in a record showroom space of 140,000 square meters.
- Beijing will reduce car registrations from next year in a bid to clean up its air and ease traffic congestion. The new limit will be announced in late November and be effective in 2014. The total number of vehicles in the city will be restricted to around 6 million by the end of 2017. The city had 5.35 million vehicles at the end of July. Beijing started to cap the number of new cars that could be registered annually in 2011 to 240,000 – one-third of the number registered in 2010. Would-be car buyers must participate in a license plate lottery. In August, the Municipal Transport Commission received 1.6 million new car license applications. One out of 80 applicants got car purchase permits as only 20,000 new license plates are now issued each month. Vehicle exhaust fumes are contributing 22.2% of PM2.5 particles in the city, exceeding the figure for industrial emissions.
- While high-end car sales will remain an important driver of China’s car market, after-sales services are expected to lead the sector’s growth over the next decade, a study by global consulting firm McKinsey said. China will see local car-sales growth slow to about 6% annually between now and 2020, compared to an average of 18% in the period since 2006, according to the study. However, high-end vehicles will outperform the overall market with growth of 8% to 10% a year. After-sales services, which includes car financing, spare parts and used-car sales, is an even more promising sector, with expected revenue growth as high as 20% a year by 2020.
- Sales of passenger cars and commercial vehicles rose 10.3% in August from a year earlier to 1.65 million units. On a monthly basis, sales grew 8.7% as the extremely hot weather dampened sales in July, according to the China Association of Automobile Manufacturers (CAAM). Combined sales so far this year have hit 13.95 million units by August, up 11.8% from a year earlier. Sales of sport utility vehicles (SUVs) surged 46.1% last month and were the key driver in the passenger car market. Sales of sedans rose 4%. Chinese brands achieved a 15.8% year-on-year rise in passenger car sales last month and captured a 38% share of the market, up 2.8 percentage points from July.
- The London Taxi Co (LTC) restarted production of the famous black cab, six months after the business was rescued by the Geely Group. Since Geely Group acquired the company from the administrators in February 2013, the company has cleared the inventory of vehicles that remained following the closure of the production facilities in 2012.
- The Trumpchi E-jet, a sleek, plug-in electric hybrid developed by state-owned Guangzhou Automobile Group (GAC), is set to make its international movie debut in the fourth Transformers film next year. The E-jet, which GAC showed off at the Detroit auto show in January, is a concept car, which the company currently has no plans to commercialize. Last year, GAC earned a profit of CNY1.1 billion on sales of around CNY13 billion.
- The Chinese government unveiled a much awaited new subsidy policy for energy-saving cars. A private buyer of electric passenger cars will continue to enjoy a maximum subsidy of CNY60,000, the Ministry of Industry and Information Technology (MIIT) said. A buyer of electric plug-in hybrids will enjoy a maximum subsidy of CNY35,000. The government will cut the subsidy at all levels by 10% in 2014 and 20% in 2015 to send a message that the industry cannot rely on subsidies indefinitely and should build its own strengths. Non-locally manufactured new-energy cars must account for at least 30% of local governments’ green car promotion targets.
- Sales of recreational vehicles (RVs) and caravans are booming in China, to the surprise of even car dealers. Last month, a four-day exhibition in Beijing ended with sellers pocketing CNY550 million in revenue. About 40,000 people visited the show, and more than 500 vehicles were sold. “A few years ago, there were only a few thousand RVs in China. But now the total number might reach tens of thousands, though no official figure has been given”, Li Mengsha, Sales Consultant with Beijing Camper RV, the largest distributor for RVs and caravans in China, said. When the first RV and caravan show was held in 2010, there were only about 40 vehicles on display, bringing a few million yuan in sales, but last year’s show already generated about CNY500 million in revenue. “The boom surprised everyone in the industry,” Li said. After placing an order, consumers must often wait more than a year, if not two, for delivery.
Short news automotive
Jun-27-2013 By : agxadmin
- Partnering with the event’s organizing committee, Volvo was the exclusive provider of VIP transportation for the Fortune Global Forum in Chengdu in May. The company also co-hosted a roundtable discussion titled “the Future of Transportation”. Volvo Chairman Li Shufu represented the company at major activities of the forum. Volvo’s factory in Chengdu will become operational later this year. Hakan Samuelsson, President and CEO of Volvo Car Group, said now is a time of rapid development for Volvo in the domestic market.
- In the first five months of this year, Volvo’s sales in China totaled 22,905 units, up 26.9% annually, despite the sluggish market. In May alone, it sold 4,415 units, up 24.4% annually, making China its largest market worldwide. Volvo plans to introduce six new models to China to further enrich its portfolio. On June 5, Volvo unveiled the 2014 S80L, an executive luxury sedan.
- Great Wall Motors defied the industry slowdown last year, as it sold 620,000 vehicles in 2012, up 28% year-on-year, higher than the industry average increase of 4.3%. Its share price jumped 103% on the Shanghai bourse in 2012, marking the largest increase among China’s publicly held car makers.
- Volkswagen and its Chinese partner SAIC Group signed an agreement to enhance their strategic cooperation, expand capacity at their Foshan factory in Guangdong province, which will start production this year, and set up a new plant in Changsha, Hunan province. The deal was signed during Premier Li Keqiang’s three-day official visit to Germany. The agreement is part of the German automaker’s plan to invest €9.8 billion in China by 2015. Volkswagen plans to establish seven new plants in China in the coming years to boost its local annual production capacity by more than 60% to 4 million units by 2018.
- China tops the list of countries where automotive CEOs expect their business to grow this year. In addition, nearly two-thirds of 90 automotive CEOs from 32 countries who are looking to China as a growth market intend to build or further expand their manufacturing capacity in the next 12 months, according to PricewaterhouseCoopers’ 16th Annual Global CEO Survey Automotive Summary. 32% of automotive CEOs said China is one of their top markets. Consulting firm McKinsey & Co said China’s passenger vehicle market will maintain an average year-on-year growth of 8% over the next decade.
- Honda Motor Co is boosting the localization of its research and development (R&D) in China. By the end of 2015, Honda plans to introduce 12 new models to China, including the mid-size sedan Crider, developed mainly by Chinese staff for China, and the multipurpose vehicle Jade. Honda plans to produce hybrid models in China within three years, which it says will result in cheaper prices. The company is targeting sales of 1.3 million units annually in the Chinese market before the end of 2015, said Seiji Kuraishi, President of Honda Motor (China) Investment Co.
- The listing of car parts-supplier Nexteer Automotive will offer investors an opportunity to get involved in the Chinese passenger-vehicle market, but the company is facing downward pressure on selling prices of its products as car markets in the U.S. and Europe slow down. Nexteer’s net profit fell three basis points to 2.7% last year, while its gross margin stayed at 12.3%. Sales fell 3.6% to USD2.2 billion. The company will launch three new electric power steering programs in the second half. Nexteer has 20 manufacturing plants, 10 customer services centers, and five regional engineering centers. Nexteer seeks to raise up to HKD2.5 billion through an initial public offering (IPO). Trading is due to begin on July 3.
- Wu Xiao’an, Chief Executive of both Xinchen Power and Brilliance Auto – a joint venture between Xinchen’s parent company Huachen and the luxury German marque that produces BMW cars in China – said Xinchen could emerge as a top-tier engine supplier to BMW. Wu was speaking on the sidelines of the company’s inauguration of a plant in Mianyang, Sichuan, which will produce the first batch of 25,000 BMW N20 engines next June. Brilliance Auto is doubling its engine capacity to 400,000 units with a new plant in Tiexi, Shenyang province, that will begin production in 2015. But that may still fall short of BMW’s long-term goal to sell 600,000 cars a year in China, nearly double its sales last year.
- Shanghai car plate prices fell for the third consecutive month at the June auction as speculation cooled. The average successful bid dropped to CNY77,823, down CNY2,980 from last month, while the lowest price shed CNY3,100 to CNY77,600, according to the Shanghai International Commodity Auction Co. These falls saw Shanghai car plate prices dip below the CNY80,000 psychological benchmark, which was first surpassed in February. In March, prices reached a record high of more than CNY90,000, after soaring 32.5% in the first three months of this year – more than for all of last year.
- Beijing Automotive Group Co, which manufactures vehicles with Daimler and Hyundai Motor Co in China, has set up a unit to spearhead acquisitions abroad, starting with Europe. BAIC International Development Co will be in charge of overseas acquisitions and investment as well as boosting international vehicle and parts sales. The carmaker plans to have CNY2.5 billion of profit from abroad with a sales target of 400,000 units by 2020.
- Cheng Guozhang, Executive President of Renault China, said the company will introduce 10 new models in the next four years and raise the number of its dealers by 60% to 185 in two years. Renault’s proposal of building a manufacturing base together with its Chinese partner Dongfeng Motor in Wuhan, Hubei province, has got the approval from China’s Ministry of Environmental Protection (MEP), but still needs the nod from the National Development and Reform Commission (NDRC) and the Ministry of Industry and Information Technology (MIIT). The production facilities are designed with capacities to produce 150,000 passenger vehicles and 150,000 engines per year.
- Up to 500 E150 electric cars produced by Beijing Auto will be given a CNY140,000 purchase subsidy along with a free car plate for their promotion in the capital. The money includes CNY20,000 promised by the carmaker, with the rest to come from the central Beijing governments. That means a customer only needs to pay CNY109,800 for the car, which carries a price tag CNY249,800.
Short news automotive
May-30-2013 By : agxadmin
- U.S. company Coda Holdings recently filed for bankruptcy protection as it finalizes plans to exit the auto sector and refocus its business in energy storage. Its four-door, five-seat car was built by China’s Hafei, a subsidiary of Chang’an Automobile Group, and the battery was developed by Coda’s local joint venture with Tianjin Lishen Battery Co. Last year, Coda also agreed with China’s Great Wall Motors to co-develop its second product. Analysts said that agreement is expected to lapse as the California company exits the auto industry. Last year only about 13,000 hybrid and electric vehicles were sold in China.
- Ferrari expects the Greater China market plus the Far East region to contribute 2% more turnover in the next five years. By 2017, China will contribute 30% of turnover, up from the current 28%. In 2012, Ferrari sold 784 cars in its Greater China market, a 4% rise, reinforcing the market as its second largest after the U.S. Ferrari has 27 dealerships in the Greater China region, and plans to have 30 by the end of 2013, with three being added on the mainland.
- BWM has set up a third dealer staff training center in Guangzhou, following the existing ones in Beijing and Shanghai. The number of BMW dealer outlets in China is likely to reach 420 by the end of this year, employing about 43,000 staff. Karsten Engel, President and CEO of BMW Group Region China, said that the company needs “professional, experienced and dedicated people” to deliver high-quality services that live up to the expectations of customers. “The days of super-fast growth in China’s premium market are over. The key topic of tomorrow is quality,” he added. In April, Mercedes-Benz also opened a new training center in China, the sixth in the country.
- Shanghai reduced the supply of car plates to 9,000 and lowered the price ceiling designed to curb soaring plate prices to CNY79,900 at the May 25 auction. Bids exceeding that price were rejected by the online auction system in the first round of bidding. The average successful bid for a Shanghai car plate fell to CNY80,803, down CNY3,298 from last month, while the lowest price shed CNY3,200 to CNY80,700, according to the Shanghai International Commodity Auction Co. The atmosphere at the auction was less tense than usual. The number of bidders dropped by 3,950 to 22,224. Next month, the upward price limit for the first round of bidding will be set at CNY77,300, down CNY2,600 from this month’s maximum.
- Korean automakers Hyundai and Kia will recall more than 175,000 cars due to defective brake light switches, the General Administration of Quality Supervision, Inspection and Quarantine (GAQSIQ) said in a statement. Beijing Hyundai Motor Co will recall 121,835 of its IX35 models manufactured between April 9, 2010, and October 6, 2011, while Dongfeng Yueda Kia, a joint venture of Kia with two Chinese companies, is recalling 53,897 of its Sportage vehicles made between July 8, 2010, and October 15, 2011.
- Audi posted the fastest pace of sales growth among German luxury brands in China in April. Volkswagen-owned Audi deliveries rose 13% to 38,710 vehicles in the mainland and Hong Kong in April. BMW reported an 11% gain to 30,311 units on the mainland. Mercedes-Benz said sales increased 11% to 16,241 units on the mainland and Hong Kong. On the mainland, Audi cornered 29.6% of the market, BMW had 23.6%, while Mercedes-Benz took 20.6% in 2012, according to researcher IHS Global Insight.
- BYD rolled out Hong Kong’s first electric taxi fleet. The Hong Kong Taxi & Public Light Bus Association said it is renting from BYD an initial fleet of 45 taxis for HKD8,000 each per month, although only six vehicles had licenses so far. “We expect to increase the number of e6 taxis in Hong Kong to 5,000 in three years,” said Liu Xueliang, General Manager of BYD Asia Pacific sales.
- Sales of light vehicles including cars and light commercial vehicles in China will total 34.6 million units in 2020, double the figure in the U.S., according to a recent projection by Finbarr O’Neil, President of consulting company JD Power. He said China’s light vehicle sales are expected to reach 19 million units by the end of the year.
- China Grand Auto topped the ranking of the 100 biggest auto dealer groups in China last year with revenue of CNY72.6 billion, according to a recent report by the Automobile Dealers Association. Sinomach Automobile Co, with more than CNY62 billion in revenues, claimed the second spot. Shanghai-listed Pang Da Automobile Trade Co fell to third place with a revenue of CNY57.8 billion.
- Chinese manufacturer of special-purpose vehicles Tri-Ring Group may buy Polish bearings maker FLT Krasnik for about USD95 million in the largest investment yet by a Chinese firm in Poland.
- Dongfeng Motor Corp will inject capital into Fujian Motor Industry Group Co in exchange for an undisclosed stake from the Fujian provincial government. “This is part of the ongoing process for industry consolidation, we should be expecting more deals in the coming years,” said Lin Huaibin, Shanghai-based Analyst at IHS Automotive. Dongfeng, which produces Nissan’s Teana sedan, Honda Motor’s CR-V SUV and Citroen’s C5 sedan at its plants in China, is seeking to boost sales of its self-developed brands.
- Prices of imported cars in China fell the most in five months in April, by 3.4% from a year earlier, according to the National Development and Reform Commission (NDRC). That compares with the 0.2% increase for locally-made passenger vehicles.
- All 15 E150EV electric cars produced by the Beijing Automotive Group have been booked within three days of the Beijing launch of a pioneering rental project aimed at promoting the private use of e-vehicles. Based at Tsinghua University’s Science Park in Haidian district, the project was initiated by the Beijing Municipal Commission of Science and Technology. Most customers were people working in the park, where lots of high-tech enterprises are based. Customers can rent the electric cars by the hour, day or month. The cars cost CNY49 for two hours, CNY99 per day and CNY1,999 a month. It costs less than CNY19 to fully charge a car, which will then run for 120 kilometers.
- Brilliance China Automotive Holdings said it was likely to exceed its sales growth target of 25% for this year, but analysts said the carmaker’s new clean-energy-vehicle project and a product upgrade by rival Mercedes-Benz could pressure short-term profit. Sales jumped 25% year-on-year to 67,000 cars during the first four months of the year. It also forecast that by the end of the year sales could exceed its target of 200,000 units.
- Guangzhou Automobile Group announced that it plans to invest CNY1.7 billion to double the production capacity of its wholly-owned passenger car unit to 200,000 vehicles a year. The company also said it will invest another CNY1.15 billion in product development of the Trumpchi, its own passenger car brand.
- Beijing plans to have 50,000 electric vehicles on the roads by 2015, of which 30,000 will be private cars. The plan calls for 8,000 alternative-energy buses as well as 10,000 green taxis and government cars in the city by that time.
- Continental Tires opened its 13th BestDrive flagship store in China on May 16. The new facility in Wuhan, Hubei province is also the company’s 2,900th franchised store in the country. The company plans to aggressively expand its retail network in China this year by adding a total of 1,000 new authorized stores, or approximately three each day.
- Chinese car brands reported strong sales growth in the first fourth months in Russia. Great Wall Motors sold nearly 7,000 vehicles from January to April, up 85.5% from a year earlier. Geely ranked second, with more than 6,500 units delivered in the same period, up 64.4% from a year earlier. Lifan and Chery followed, both reporting sales of more than 6,000 units.
- China’s auto sales may start to go flat as early as 2015, with the trend remaining for 10 years, amid an infrastructure bottleneck and doubts on the ability of potential buyers in rural areas to afford a vehicle, UBS Securities predicted. In the past decade, China’s auto industry has grown by a 20% compound annual rate.
- Red Flag cars went on sale to the public on May 30 after a USD300 million overhaul, competing against Audi and BMW in the elite segment. FAW Group has already delivered more than 500 Red Flags to government agencies. FAW made about 1,500 Red Flag cars, reserved for high-ranking government and party officials, in the 24 years before the brand was discontinued in 1982 for having excessive fuel consumption. The brand has now been revived.
