Dongfeng to boost car investment to CNY30 billion
December 21, 2011 Category Automotive, Automotive Metals & Minerals
Dongfeng Motor plans to invest more than CNY30 billion to triple annual sales of its own brand by 2016 and reduce reliance on profits from making cars for Nissan Motor and Peugeot Citroen. “We’re at a key stage of beefing up the competitiveness of China’s auto industry,” Xu Ping, Chairman of Dongfeng, said at the company’s headquarters in Wuhan. Dongfeng – which derived about 66% of its sales this year from selling foreign brands – joins Guangzhou Automobile and SAIC in stepping up development of their own brands to compete for a larger share of the market. “Local carmakers want to boost sales of their own brand cars to increase profitability,” said George Yin, Analyst with Bocom International. The 15 largest carmakers accounted for 89% of deliveries this year, with the remaining 55 companies selling fewer than 10,000 units monthly, including 10 with zero sales all year, according the China Association of Automobile Manufacturers (CAAM). Yin estimated there are more than 700 passenger-car models in the Chinese market. Dongfeng said it plans to boost yearly sales of its Fengshen, or Aeolus brand, to three million units by 2016, from about one million estimated for this year. Overall deliveries at Dongfeng, which includes its sales of foreign brands, rose 12% to 2.76 million cars in the first 11 months and may exceed three million for the full year, the company said.
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