Changan to sell its China-branded cars at home and abroad
June 27, 2013 Category Automotive, Automotive Metals & Minerals
Changan Automobile Co is poised to make a historic breakthrough by having one of its joint ventures both producing and selling Chinese-branded cars at home and abroad. The Chongqing-based carmaker and the French automaker PSA Peugeot Citroen established their joint venture Changan PSA Automobiles Co in 2011 in Shenzhen. “Within the next three years, Changan cars produced by our joint venture with PSA will be sold in China and overseas,” said Ren Qiang, Changan’s Vice President. Changan has also set up joint ventures with Mazda, Ford and Suzuki. In 2011, 95% of total profits generated by all auto enterprises in China were from joint enterprises, and independent firms accounted for just 5%, according to a report released by the Chinese Academy of Social Sciences (CASS) last month. “Until now, none of the automobile joint ventures in China had ever introduced independent Chinese brands onto the market,” said Jiang Aiqun, Spokesman at Changan. Chinese automakers are seeking various opportunities to increase market share for their own brands in their fight against foreign counterparts. Companies including SAIC, FAW Group and Changan all plan to introduce middle- and high-end vehicles, a sector of the market now dominated by foreign brands. “By 2020, we plan to increase overseas sales of Changan cars to 25% of the brand’s total sales volume,” said Ren. In 2012, more than 1 million Chinese-branded cars were exported mainly by five leading companies: Chery Automobile, Geely Automobile, Great Wall Motors, GMAC-SAIC Automotive Finance, and Lifan Group, according to data from China Association of Automobile Manufacturers (CAAM). From January to April, Changan sold 710,000 units in total, a 23% year-on-year increase, and 10% higher than the industry average. Its independent brand sales reached 321,000, ranking it top among China’s brands, the China Daily reports.
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