2009 guide to china's auto market - 04-27 - automotive news

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S U P P L E M E N T T O APRIL 27, 2009

Global automakers’ joint ventures • Domestic Chinese automakers Vehicle production and sales data • Map of production facilities in China

Guide to China’s Auto Market2009

SHENG LI/REUTERS

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China’s economy isslowing down, and so isthe auto industry. Toput growth on a moresustainable path, the

government is counting onpolicies to encourage small carsand cut gasoline consumption.

Last year China’s gross domesticproduct slowed to 6.8 percentgrowth in the fourth quarter from10.6 percent in the first quarter.Meanwhile, sales of locallyproduced vehicles grew 6.9percent in 2008 to 6.5 millionunits, according to JATODynamics. Sales of passengervehicles surged more than 20percent in 2006 and 2007.

The government wants toencourage sales and cut the nationalfuel bill at the same time. China buyshalf its oil overseas. But until late lastyear, the government subsidized oilprices to keep them belowinternational levels. That fueledexuberant sales of gasoline-guzzlingvehicles such as SUVs.

But with the global economy inrecession, crude oil prices tumbled.That gave the government theopportunity to raise the fuel tax. On Jan.1, the tax on a liter of gasoline rose tothe equivalent of 15 cents from 3 cents.

At the same time, the governmentabolished most annual fees chargedvehicle owners, such as the $210annual fee for road maintenance.

To boost sales of fuel-efficientvehicles, the government cut thepurchase tax for vehicles with enginedisplacements of 1.6 liters or below.

In the works are incentives tostimulate used-car sales andencourage inefficient state-ownedautomakers to merge with healthyones. Meanwhile, the competitivelandscape in China will grow moreintense this year as Japaneseautomakers build momentum anddomestic automakers crank up theirown brands.

With a market share of locallyproduced vehicles of 15.1 percent,Volkswagen is still the clear leader. Itsjoint ventures with China’s two largeststate-owned automakers, China FAW

Group Corp. and Shanghai AutomotiveIndustry Corp., sold nearly 1 millioncars under the Volkswagen, Audi andSkoda brands last year.

But the Japanese are catching up.Toyota sold 543,106 locally producedvehicles in China last year, up 19.3percent over 2007. Meanwhile, Hondasaw its sales in China of locallyproduced vehicles increase 11.3percent, and Nissan saw an increaseof 28.2 percent.

U.S. automakers, suffering from ashortage of new or redesigned models,slipped last year. General Motors’sales of locally produced vehiclesdropped 8.1 percent, and Ford MotorCo.’s sales of locally produced vehiclesfell 10.4 percent in 2008.

Chrysler lacks a joint-venturepartner in China to assemble vehicles.It mainly imports slow-selling Jeepsto a network of about 130 dealers.

Chinese brands still dominate themarket for inexpensive cars. Domesticbrands are particularly strong in theeconomically underdeveloped inlandof the country.

But with international brands such asChevrolet and Suzuki making inroadsin China’s interior, the domesticsincreasingly will be challenged todefend the low end of the market.

— Yang Jian

2 0 0 9 G U I D E T O C H I N A ’ S A U T O M A R K E T

2009 GUIDE TO CHINA’S AUTO MARKET Automotive News • J.D. Power and Associates • Automotive Resources Asia

2

42008 sales

6Globalautomakers/joint ventures

18Map ofproductionfacilities in China

20Domesticautomakers

Cover photo: Employees workon the production line atBrilliance Automotive’sfactory in Shenyang, Liaoningprovince last month.

Contents

CHINA’S TOP 10China’s top-selling passengervehicles in 2008

Model Sales

1. Wuling Light/

Sunshine/City Breeze 545,239

2. Changan

Green Star 222,366

3. Hyundai Elantra 203,734

4. Volkswagen Jetta 202,303

5. Buick Excelle 175,470

6. Honda Accord 170,304

7. Toyota Corolla 165,270

8. Toyota Camry 152,834

9. Nissan Tiida 137,193

10. BYD F3 136,782

Source: JATO DynamicsData in this publication wereprovided by JATO DynamicsInc., North AmericanOperations, 2851 HighMeadow Circle, Suite 220,Auburn Hills, MI 48326, USA.www.jato.com/usa.

Note: Sales data reflectvehicles produced in Chinaunless noted.

As once-hot market cools off,government wants fuel economy

THE F6DM IS ONE OF FIVE NEW BYD MODELS THIS YEAR — AND IT’S A HYBRID. THATSHOULD INTEREST CHINA’S GOVERNMENT, WHICH WANTS TO CUT THE NATION’S FUEL BILL.

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S A L E S

2009 GUIDE TO CHINA’S AUTO MARKET Automotive News • JATO Dynamics

4

CHINA PASSENGER VEHICLE SALES

Volkswagen AG remained the top-selling automaker in China in 2008. Gaining fast are three top Japanese automakers:Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co. These sales figures include only locally produced passengervehicles — cars, SUVs and multipurpose vehicles. They do not include commercial vehicles and imported vehicles.

2008 2007 % chng.Suwei 12,063 10,163 18.7

BAW 12,063 10,163 18.73 series 13,462 13,047 3.25 series 21,702 19,202 13.0

BMW 35,164 32,249 9.0Coupe 1,346 – –Grace 12,079 11,900 1.5Grandeur 17,226 32,360 –46.8Splendor 73,086 82,311 –11.2

BRILLIANCE 103,737 126,571 –18.0F0 23,677 – –F3 136,782 93,033 47.0F3-R – 5,443 –F6 10,250 – –Flyer 173 1,650 –89.5

BYD AUTO 170,882 100,126 70.7Benben/Benni 39,036 47,523 –17.9CM8 2,589 8,328 –68.9Green Star 222,366 249,567 –10.9Joice 509 558 –8.8Z-Shine 1,153 – –

Total Chana 265,653 305,976 –13.2Jiangling Baowei 2,765 4,817 –42.6Fashion 741 2,610 –71.6Fenghua 3,265 882 270.2X6/X9 4,095 8,011 –48.9

Total Landwind 8,101 11,503 –29.6CHANGAN GROUP 276,519 322,296 –14.2

Kylin 826 – –Liebao 26,060 25,758 1.2

CHANGFENG 26,886 25,758 4.4Ideal 8,294 7,295 13.7

CHANGHE 8,294 7,295 13.7A1 28,482 – –A3 6,965 – –A5 59,582 67,385 –11.6Cowin 52,027 96,014 –45.8Eastar 6,127 16,515 –62.9Eastar Cross 9,522 – –Karry 1,907 1,818 4.9QQ 133,386 139,991 –4.7Riich R2 7,940 582 1264.3Tiggo 50,155 50,102 0.1V5 – 6,854 –

CHERY 356,093 379,261 –6.1300 1,429 7,743 –81.5Grand Voyager 2,187 1,216 79.9Sebring 6,808 – –

Total Chrysler 10,424 8,959 16.4Caravan 776 – –

Total Dodge 776 – –Grand Cherokee – 318 –

Total Jeep – 318 –CHRYSLER 11,200 9,277 20.7

Freeca 1,075 1,821 –41.0Lioncel 10,097 4,433 127.8Veryca 677 1,475 –54.1

Total Soueast 11,849 7,729 53.3CMC SOUEAST 11,849 7,729 53.3

C class 7,321 – –E class 7,035 6,882 2.2

Total Mercedes-Benz 14,356 6,882 108.6DAIMLER 14,356 6,882 108.6

Future 20,010 18,397 8.8Joyear 44 281 –84.3Oting 1,875 2,721 –31.1Yumsun 1,682 797 111.0

DONGFENG 23,611 22,196 6.4RCR 107 – –

Total Lotus 107 – –EUROPESTAR 107 – –

2008 2007 % chng.Besturn 47,750 23,279 105.1C1 – 31,686 –Envoy 970 1,972 –50.8Freewind 929 2,066 –55.0N3 120,970 132,544 –8.7Redflag 619 3,006 –79.4Redflag Hq3 1,548 – –Vela 4,670 14,073 –66.8Vita 49,914 – –Vizi 1,084 1,977 –45.2

FAW 228,454 210,603 8.5Palio – 9,605 –Perla – 3,086 –Siena – 2,834 –

FIAT – 15,525 –Focus 112,552 124,991 –10.0Mondeo 39,622 44,375 –10.7S-Max 3,918 4,719 –17.0

Total Ford 156,092 174,085 –10.3S40 5,666 6,391 –11.3

Total Volvo 5,666 6,391 –11.3FORD MOTOR CO. 161,758 180,476 –10.4

MP-X 2,549 474 437.8View Surf 921 1,243 –25.9

FOTON 3,470 1,717 102.16500 88 294 –70.1

FUQI 88 294 –70.1Free Cruise 81,076 79,935 1.4Haoqing – 5,404 –King Kong 62,916 45,438 38.5Meirenbao 268 1,561 –82.8Panda 1,769 – –Ulio 8,570 33,906 –74.7Vision 30,195 17,923 68.5

Total Geely 184,794 184,167 0.3Haifeng 4,254 2,423 75.6Hisoon 5,758 4,802 19.9Marindo 26,345 29,440 –10.5

Total Maple 36,357 36,665 –0.8GEELY GROUP 221,151 220,832 0.1

Excelle 175,470 195,731 –10.4GL8 36,286 42,516 –14.7LaCrosse 52,746 71,512 –26.2Park Avenue 4,824 5,698 –15.3Regal 9,912 15,255 –35.0Royaum – 14 –

Total Buick 279,238 330,726 –15.6SLS 2,633 4,384 –39.9

Total Cadillac 2,633 4,384 –39.9Aveo 119,664 98,451 21.5Epica 43,173 41,718 3.5Sail 40 20,471 –99.8Spark 40,797 32,510 25.5

Total Chevrolet 203,674 193,150 5.4GM 485,545 528,260 –8.1

Cowry 1,114 – –Florid 2,226 – –Hover 56,669 57,752 –1.9Pegasus – 88 –Peri 7,478 – –Safe 3,876 3,511 10.4Sing 1,667 3,381 –50.7

GREAT WALL 73,030 64,732 12.8Yunque – 8 –

GUIHANG – 8 –Family 85,427 113,667 –24.8Haima3 7,330 9,243 –20.7Premacy 3,342 8,078 –58.6

HAIMA 96,099 130,988 –26.6

continued on


S A L E S


5

CHINA PASSENGER VEHICLE SALES continued from Page 42008 2007 % chng.

Lobo 30,224 31,778 –4.9Saibao 6,475 5,748 12.6Saima 6,812 – –Sigma – 7,273 –Zhongyi/Minyi 105,162 122,366 –14.1

Total Hafei 148,673 167,165 –11.1HARBIN AIRCRAFT INDUSTRY 148,673 167,165 –11.1

Accord 170,304 118,024 44.3City 56,938 68,128 –16.4Civic 83,413 81,339 2.5CR-V 80,622 45,707 76.4Fit 49,883 63,320 –21.2Odyssey 28,873 45,827 –37.0

HONDA 470,033 422,345 11.3Accent 24,628 26,665 –7.6Elantra 203,734 120,333 69.3NF 7,205 13,882 –48.1Santa Fe 12,404 11,430 8.5Sonata 17,410 25,528 –31.8Sonata NF 319 – –Terracan 1,247 1,422 –12.3Tucson 41,208 44,729 –7.9

Total Hyundai 308,155 243,989 26.3Accent – 5,309 –Carnival 1,155 2,416 –52.2Cerato 74,352 62,786 18.4Optima 4,103 6,700 –38.8Rio 29,898 18,512 61.5Sportage 32,500 5,713 468.9

Total Kia 142,008 101,436 40.0HYUNDAI GROUP 450,163 345,425 30.3

Rodeo 671 1,257 –46.6ISUZU 671 1,257 –46.6

Binyue 8,291 460 1702.4Refine 36,304 40,049 –9.4Rein 10,250 7,605 34.8Tongyue 3,392 – –

JAC 58,237 48,114 21.0Alto 13,099 5,443 140.7Spirit – 1 –

JIANGNAN 13,099 5,444 140.6Lifan 520 31,701 30,099 5.3Lifan 620 1,411 – –

LIFAN AUTO 33,112 30,099 10.0Mazda2 13,692 1,528 796.1Mazda3 29,225 35,844 –18.5Mazda6 69,794 53,994 29.3

MAZDA 112,711 91,366 23.4Galant 4,234 9,792 –56.8Lancer 15,479 24,665 –37.2Outlander – 4,741 –Space Wagon 1,209 2,277 –46.9Zinger 248 – –

MITSUBISHI 21,170 41,475 –49.0Soyat – 371 –

NANJING AUTO – 371 –Motivity 27,147 14,472 87.6

NEW DADI AUTO 27,147 14,472 87.6Bluebird – 13 –Geniss 3,797 10,737 –64.6Livina 69,992 41,341 69.3Paladin 11,166 9,605 16.3Qashqai 23,105 – –Sunny – 1,529 –Sylphy 53,224 57,182 –6.9Teana 58,372 37,803 54.4Tiida 137,193 123,310 11.3X-Trail 4,166 – –

NISSAN 361,015 281,520 28.2C2 7,786 17,417 –55.3C-Quatre 8,053 – –C-Triomphe 14,201 31,314 –54.6Elysee 55,205 31,449 75.5Fukang 13,323 28,004 –52.4Xsara Picasso 3,365 6,852 –50.9

Total Citroen 101,933 115,036 –11.4

2008 2007 % chng.206 14,593 28,558 –48.9207 1,406 – –307 60,376 63,661 –5.2

Total Peugeot 76,375 92,219 –17.2PSA 178,308 207,255 –14.0

3 4,715 – –7 4,357 3,131 39.2TF 129 – –

Total MG 9,201 3,131 193.9550 12,399 – –750 13,608 16,549 –17.8

Total Roewe 26,007 16,549 57.2SAIC 35,208 19,680 78.9

Aurora 4,325 5,812 –25.6Challenger 556 1,055 –47.3Other – 241 –

SHUGUANG AUTO 4,881 7,108 –31.3Alto 21,618 31,930 –32.3Gazelle 47,291 39,337 20.2Liana 3,835 9,468 –59.5North Star 50,895 43,151 17.9Swift 16,328 15,584 4.8SX4 38,886 21,379 81.9

SUZUKI 178,853 160,849 11.2Terios – 14 –Xenia 5,057 2,126 137.9

Total Daihatsu 5,057 2,140 136.3Camry 152,834 170,382 –10.3Corolla 165,270 129,859 27.3Corolla Ex 52,249 – –Crown 45,427 53,111 –14.5Land Cruiser 100 4,734 2,512 88.5Land Cruiser Prado 13,648 11,028 23.8Prius 899 414 117.1Reiz 46,953 46,299 1.4Vios 36,865 39,395 –6.4Yaris 19,170 – –

Total Toyota 538,049 453,000 18.8TOYOTA 543,106 455,140 19.3

A4 19,731 19,562 0.9A6 81,051 72,635 11.6

Total Audi 100,782 92,197 9.3Fabia 841 – –Octavia 59,499 30,902 92.5

Total Skoda 60,340 30,902 95.3Bora 59,211 58,613 1.0Caddy 43 3,076 –98.6GOL – 8 –Golf 3,577 4,768 –25.0Jetta 202,303 182,886 10.6Lavida 44,392 – –Magotan 52,505 27,244 92.7Passat 100,902 120,462 –16.2Polo 74,490 90,367 –17.6Sagitar 75,456 74,345 1.5Santana 107,028 106,086 0.9Santana 3000 – 97,048 –Santana Vista 90,400 – –Touran 12,007 10,586 13.4

Total Volkswagen 822,314 775,489 6.0VOLKSWAGEN GROUP 983,436 898,588 9.4

Light/Sunshine/City Breeze 545,239 464,118 17.5WULING 545,239 464,118 17.5Cruise 158 1,806 –91.3Landmark 5,968 5,165 15.5Total ZXauto 6,126 6,971 –12.1ZHONGXING MOTOR 6,126 6,971 –12.1TOTAL 6,491,544 6,072,000 6.9

Source: JATO Dynamics


China was a significant growth market forBMW AG last year, but BMW still trailsluxury leader Audi.

Including imports, sales of BMW and Miniin China rose 28 percent in 2008 from theprevious year to 65,822 units. During thesame period, BMW and Mini global salesdecreased 4.3 percent.

To maintain momentum in China, BMWsays it will offer its EfficientDynamics familyof fuel-saving technologies, such as brakeregeneration and engine stop-start systems.

“New models with moreEfficientDynamics technology and featureswill contribute positively to our sales inChina,” says Christoph Stark, president ofBMW Group Region China.

Until now, these technologies have beenmissing in the 5- and 3-series carsassembled at BMW’s joint venture in China,BMW Brilliance Automotive Ltd.

BMW again lagged far behind China’sluxury market leader Audi, which sold100,782 locally made units in 2008, up 9.3percent from 2007. Sales of the locally madeAudi A6L totaled 81,051 units.

Rival Mercedes-Benz still trails in thirdplace in the luxury race, but sales of itslocally produced models more than doubledlast year to 14,356 from 2007. Total sales ofMercedes in China were 38,700 in 2008.

In January, BMW launched the imported,fifth-generation 7 series in China with astarting price of about $194,000. BMWdropped an entry-level 7-series version that

started at about $117,000.To attract young customers in

China, in June 2008 BMWstarted importing the 1-seriessmall car. Mercedes-Benzfollowed the same strategy andimported the B-class smallmultipurpose vehicle.

Last year, BMW bought partsin China worth $643 million, upfrom $526 million in 2007.Suppliers to the automaker rosefrom 100 in 2007 to 150 last year.

BMW had 120 dealerships inChina at the end of 2008.

Annual production capacity atthe automaker’s Shenyang plant

increased to 41,000 units in 2008. BMW is intalks with Brilliance China AutomotiveHoldings to build a second plant for thejoint venture.

The venture sold 35,164 units in 2008, up9.0 percent from 2007. The venture withBrilliance accounted for about half ofBMW’s sales in China.

— Lan Lan

G L O B A L A U T O M A K E R S / J O I N T V E N T U R E S6

BMW 5 SERIES

BMW AG Beijing Representative Office28/F, Tower B, Gateway PlazaChaoyang District, Beijing 100027, P.R. China(86) 10-8455-8000, www.bmw.com.cnTop executive: Christoph Stark, president & CEO

JV: BMW Brilliance Automotive Ltd.No. 14, Shanzuizi Road, Dadong District, Shenyang CityLiaoning Province 110044, P.R. China(86) 24-8455-6000, www.bmw-brilliance.cnTop executive: Alfred Rupp, president

JV: Beijing Benz-DaimlerChrysler Automotive Co.

No. 8 Boxing Road, Beijing Economic-Tech AreaBeijing 100176, P.R.China(86) 10-6782-4888, www.bbdc.com.cnTop executive: Guenter Butschek, president & CEO

Daimler Northeast Asia Ltd.Daimler Tower, 8 Wangjing Street,Chaoyang District, Beijing 100102, P.R. China(86) 10-8417-8888, www.daimler.com.cnTop executive: Ulrich Walker, DCNEA chairman & CEO

2008 2007

Sales, locally producedpassenger vehicles 14,356 6,882

Models produced: Mercedes-Benz C class, E class Ownership:Beijing Automotive Industry Holding Co. 50%DaimlerChrysler AG (DCAG) 39%Northeast Asia Ltd. 11%


Mercedes-Benz still trails Audi and BMWfor luxury leadership, but Daimler AG’sluxury brand finally gained traction last yearwhen it started assembling the Mercedes C-class car in China.

Sales of Mercedes’ locally produced modelsmore than doubled in 2008 compared with2007, to 14,356 units. The newly added Cclass contributed more than half of the sales.

Meanwhile, China has become thesecond-largest market for the Mercedes S-class sedan, after the United States. Sales ofthe imported S class increased in China to13,860 units, up 31 percent from 2007.

Total sales of Mercedes in China in 2008

were 38,700 vehicles, an increase of 44percent from 2007, the company said.

Taking advantage of its broad product line,Mercedes is entering niche marketsegments in China and is catering to localtastes.

In January, the company started testmarketing B-class cars with a 2.0-literengine. The starting price is $33,330, lowerthan some analysts expected.

Targeting young Chinese buyers, Mercedesplans to import the Smart ForTwo and GLKSUV in 2009.

In 2010, Mercedes plans to start making atits Beijing-based joint venture a long-

wheelbase version of the E-class sedan itunveiled in January at the Detroit autoshow, say supplier sources. Stretchedversions of the Audi A6 and BMW 5 seriesalready are selling well to China’s chauffeur-driven customers.

Mercedes has about 120 dealers in Chinaand will add about 20 in 2009, says Daimler.

The automaker also is preparing toincrease its commercial-vehicle business inChina. In January, Daimler signed a jointventure to make commercial vehicles andengines with Chinese truckmaker BeiqiFoton Motor Co.

— Lan Lan

2008 2007


Models produced: BMW 3 series, 5 series Ownership:BMW AG 50%Brilliance China Automotive Holdings 50%


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G L O B A L A U T O M A K E R S / J O I N T V E N T U R E S


8

In 2007, Fiat Auto S.p.A. sold 15,525domestically made Fiat cars in China. In2008, Fiat sold zero.

With the breakdown of Fiat’s joint venturewith Nanjing Automobile Group Corp. inDecember 2007, local production of Fiatcars stopped.

Fiat tried to build momentum in August2008 by bringing in three imported models,the Bravo, Linea and Grande Punto. But thecars were expensive; the Bravo Sport toppedout at $32,045. In contrast, their locallymade counterparts, the Palio Weekend,Siena and Perla, all sold for under $14,630.

So it is not surprising that the number ofFiat dealers in China has dwindled to 30,from more than 70 in 2005, as they struggle

with pricey products.Fiat needs a joint venture partner to begin

local production. The automaker wants

sales of 50,000 units in 2010. Sources say Fiat plans to restart local

production in 2011 with a domesticautomaker. Industry sources speculate thata car will be built under a technicalcooperation agreement with GuangzhouAutomobile Industry Corp. Under aprevious agreement, Fiat sold GuangzhouAuto the Alfa 166 platform, which it is usingto develop vehicles for its own brand.

Fiat declined to comment. GuangzhouAuto also declined to comment.

Meanwhile, Chery Automobile Co. has anagreement to produce 100,000 enginesannually for Fiat to use in China andelsewhere.

— Namrita Chow

2008 2007

Sales, locally producedpassenger vehicles – 15,525

Models produced:No models produced in China

Ownership:Fiat no longer has any JV’s in China.

Chrysler LLC is hanging on — barely — inChina. The struggling automaker maintainsa small network of dealers to which itsupplies imported vehicles, mainly Jeeps.

But Chrysler lacks a joint venture partnerin China to assemble vehicles. And inDecember 2008, Phil Murtaugh, Chrysler’stop executive in China, resigned.

Chrysler has licensed two companies toproduce its vehicles in China. But inJanuary, their production slowed to a trickle.

Output of Chrysler vehicles at BeijingBenz-DaimlerChrysler Automotive Co. waszero in January. Chrysler has a contract tosupply kits for a pair of sedans, the 300Cand Sebring, to Beijing Benz.

The other contract manufacturer isSoueast (Fujian) Motor Co. in Fuzhou —which makes two vans, the Chrysler GrandVoyager and Dodge Caravan. Production ofChrysler vehicles there in January totaled amere 17 units.

In December, Chrysler’s deal to producecars with Chery Automobile Co. collapsed.The two companies had planned to develop

a small car for export to America.Last July, Chrysler signed a memorandum

of understanding with Great Wall Motor Co.to share technology, components and

distribution channels. But Chryslerspokeswoman Daphne Zheng says theagreement is on hold.

— Steven Ribet

2008 2007


Models produced: Chrysler 300C, Grand Voyager,Sebring; Dodge Caravan

Ownership:Chrysler LLC 100%

Chrysler Asia Operations11-12F, West Tower, Dawning Center, 500 HongBaoShi RoadShanghai 201103, P.R. China(86) 21-6192-7899, www.chrysler.com.cnTop executive: John Kett, COO

Fiat (China) Business Co.20/F Hong Kong New World Tower, 300 Central Huaihai RoadShanghai 200021, P.R. China(86) 21-3310-9900, www.fiatgroup.comTop executive: Franco Amadei, chairman

FIAT BRAVO

CHRYSLER GRAND VOYAGER


After losing market share in Chinalast year, Ford Motor Co. iscounting on the new Fiesta smallcar to rebuild momentum.

Production of the model began inJanuary at the Nanjing plant of theChangan Ford Mazda joint venture.Early success in Europe suggeststhe Fiesta’s strong design could sellwell in China.

But Ford has some work to do toconvince shoppers that the newFiesta is different from the originalsold in China. In 2003 Ford launchedthe Fiesta nameplate in China with adated model from India.

Total sales of China-made cars ofthe Ford and Volvo brands fell 10.4

percent in 2008 to 161,758 units,according to JATO Dynamics.

Another challenge is to work outa new relationship with MazdaMotor Corp. in China.

In November, Ford lost control ofMazda when it reduced its stake inthe Japanese company. The twoautomakers share three productionplatforms in China. Through a jointventure, Changan Ford MazdaAutomobile Co., they also sharefactories in Nanjing and Chongqing.

Selling Volvo, which Ford isconsidering, also could be aheadache. The luxury brand’s S40sedan now is produced at theChangan Ford Mazda plant in

Chongqing.Besides the Fiesta, Ford’s other

product launches since thebeginning of last year have been arefreshed Transit van, a refreshedversion of its Focus compact and anew five-seat S-Max multipurposevehicle.

At the Beijing auto show in 2008,Ford displayed models withadvanced gasoline powertrains,featuring double-clutch gearboxes,direct injection and smallturbocharged engines. Ford has saidit intends to introduce thistechnology, called EcoBoost, toChina but has not given a date.

— Steven Ribet

G L O B A L A U T O M A K E R S / J O I N T V E N T U R E S 9

JV: Changan Ford Mazda Automobile Co.No. 1 Changfu West Road, Yuan Yang TownNew Northern Zone, Chongqing 401122, P.R. China(86) 23-6745-8888, www.ford.com.cnTop executive: Jeffrey Shen, president

Ford Motor China Ltd.33F, Shanghai Information Tower, 211 Century Ave.Pudong District, Shanghai 200120, P.R. China(86) 21-2891-6688, www.ford.com.cnTop executive: Robert Graziano, president & CEO

Models produced: Ford Fiesta,Focus, Mondeo, S-Max; Mazda2,Mazda3; Volvo S40, S80L

Ownership:Ford Motor Co. 50%Changan Automotive Co. 35%Mazda Motor Co. 15%

JV: Jiangling Motors Corp.No. 509 Ying Bin Road, Nanchang CityJiangxi Province 330001, P.R. China(86) 791-5266-000, www.jmc.com.cnTop executive: York Chen, president

Models produced: Ford Transit, NewGeneration Transit; JMC Baodian,Baowei, Qingka

Ownership:Jiangling Holding Co. 41%Ford Motor Co. 30%Other 29%

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Keith E. Crain Rance CrainChairman President

M.K. Crain M.P. CrainTreasurer Secretary

Robert C. AdamsGroup Vice President/Technology, Manufacturing,Circulation

WIlliam A. MorrowExecutive VicePresident, Operations

G.D. Crain Jr.Founder (1885-1973)

Mrs. G.D. Crain Jr.Chairman (1911-1996)

2009 Guide to China’s Auto Market

Editors: Charles Child, Mary Raetz

Correspondents: Namrita Chow, Kevin Huang, Lan Lan, Alysha Webb, Yang Jian,Steven Ribet

Layout: Bob Allen

Production: Terry Driscoll,Larry Williams


Sales, locally producedpassenger vehicles

2008 2007161,758 180,476

FORD FIESTA




10

General Motors struggled last year to fendoff surging Japanese automakers in China.

In 2008, Toyota usurped it as the second-biggest seller of passenger vehicles.If current trends continue, Honda soonshould relegate GM to fourth place.

According to JATO Dynamics, sales of GMbrands in China dropped 8.1 percentcompared with 2007, to 485,545 units.

To regain momentum, GM needs to reviveBuick. As recently as 2005, the premiumbrand commanded 7.5 percent of total carsales in China. But last year, Buick’s share wasdown to 4.3 percent, with an aging productportfolio falling victim to swifter model cyclesfrom the Japanese. In 2008, sales of China-made Buicks fell 15.6 percent to 279,238.

The Regal sedan, which Buick launched inDecember 2008, was the first fullyredesigned version of the model sold inChina since 1999. Five more new orredesigned Buicks are due over the nextthree years.

GM also wants to grow in China’s inlandcities, where demand is building for small,inexpensive vehicles. Chevrolet’s firstcompact sedan in China, the Cruze, isexpected to perform well when launched inApril. Four new or redesigned Chevroletmodels will follow in the next three years.

GM also plans a new economy brand tosupply the market emerging in China’sdeveloping interior region. The first modelwill debut in 2011, built on a platform no

CHEVROLET CRUZE

General Motors China Investment Co.Jingmao Tower 10/F, No. 88 Shiji Road, Pudong DistrictShanghai 200121, P.R. China(86) 21-2898-7000, www.gmchina.comTop executive: Kevin Wale, president & managing director

JV: Shanghai GM (Shenyang) Norsom Motors Co.No. 15 North of Daying Road, Dadong District, Shenyang CityLiaoning Province 110044, P.R. China(86) 24-8834-5678, www.buick.com.cnTop executive: Hou Haijing, president

Models produced: Buick GL8 Ownership:Shanghai General Motors 50%Shanghai Automotive Co. 25%General Motors China 25%

JV: SAIC-GM-Wuling Automobile Co.No. 18 Hexi Road, Liuzhou CityGuangxi Province 545007, P.R. China(86) 772-3750-258, www.sgmw.com.cnTop executive: Shen Yang, president

Models produced:Chevrolet Spark; Wuling Hongtu,Rongguang, Single & Double pickup,Sunshine, Xingwang

Ownership:Shanghai Automotive Co. 50%General Motors China 34%Wuling Automotive 16%

JV: Shanghai General Motors Corp.No. 1500 Shenjiang Road, Jin Qiao, Pudong DistrictShanghai 201206, P.R.China(86) 21-2890-2890, www.shanghaigm.comTop executive: Ding Lei, president

Models produced:Buick Excelle, Excelle HRV, LaCrosse,Park Avenue, Regal; Cadillac SLS

Ownership:SAIC Motor Corp. 50%General Motors 50%

JV: Shanghai GM Dongyue Motors Co.No. 118 Changjiang Road, Development Zone, Yantai CityShandong Province 264006, P.R. China(86) 535-6966-666, www.chevrolet.com.cnTop executive: Wang Yongqing, president

Models produced:Chevrolet Aveo, Cruze, Epica, Lova

Ownership:Shanghai General Motors 50%Shanghai Automotive Co. 25%General Motors China 25%

longer needed by Buick. Affiliate SAIC-GM-Wuling Automobile Co. will assemble thevehicle.

GM China President Kevin Wale insiststhat the automaker’s troubles in North

America won’t disruptinvestments in China.

In Anhui province,construction continues ona $234 million provingground, where workstarted in 2007.

In March 2008, SAIC-GM-Wuling opened afactory in Qingdao withcapacity to make 300,000small commercial vehiclesannually. In Liuzhou,production began at aplant for small engines,

belonging to the samesubsidiary. Like the

Qingdao project, the plant will have anannual capacity of 300,000 units.

In March, SAIC-GM-Wuling planned toopen another factory for small engines inQingdao, with an annual capacity of350,000 engines.

Last September, ground was broken inShanghai on a site that will house GM’sheadquarters for the Asia-Pacific region anda technology development center.

In December, a second plant opened atShanghai GM (Shenyang) Norsom MotorsCo., a joint venture in Liaoning province. Thenew factory initially will produce the Cruze.The plant lifted the joint venture’s annualcapacity by 150,000 to 200,000 vehicles.

— Steven Ribet

BUICK REGAL

2008 2007





11

Honda Motor Co. is looking at anotherchallenging year in 2009 as competitiongrows for its best-sellers, the Honda CR-VSUV and Accord sedan.

In 2008, sales of Honda brand cars madein China rose 11.3 percent to 470,033 units,but that was well below the 30.5 percentincrease in 2007. The company did notannounce a sales target for 2009. But in late2008, Honda China’s president, AtsuyoshiHyogo, said he hoped Honda sales wouldmatch the 5 percent growth that he expectsfor the overall market this year.

Honda’s two China joint ventures havedifferent expectations for 2009.

Dongfeng Honda Automobile Co. has anaggressive plan. It wants to sell 180,000units in 2009, up about 10 percent. The jointventure also plans to expand its capacitythis year, from 160,000 to 240,000.

Dongfeng Honda, which makes the CR-Vand Civic sedan, grew nicely in 2008. It sold164,035 vehicles, up 29.1 percent. The hot-selling CR-V was mainly responsible. Itssales reached 80,622, up 76.4 percent.

The CR-V sells well partly because it lacks aserious competitor, says John Zeng, a marketanalyst at the Shanghai office of GlobalInsight. This year, Zeng says, Toyota will startmaking a similar SUV, the RAV-4, in China.

By contrast, growth was slower at Honda’sother China-based joint venture, GuangzhouHonda Automobile Co. The company did notannounce a target for this year.

Guangzhou Honda sold 305,998 cars inChina last year, up 3.6 percent but below itstarget of 340,000. The Accord accounted forabout half of Guangzhou Honda’s sales. Likethe CR-V, the Accord will face toughercompetition this year. Key vehicles, such asthe Ford Mondeo and Volkswagen Magotan,

recently cut retail prices. Meanwhile, Guangzhou Honda is

preparing the first model of its own brand,

Linian. It is scheduled to hitthe market in 2010 and likelywill be built on the platformof the old Honda City sedan.

Honda also will continueexporting to Europe the Jazzsmall hatchback from itsGuangzhou export plant. Thecompany exported about450,000 units last year andwants to export a similarvolume this year.

Honda unveiled a newversion of the Acura TSX atthe Shanghai auto show in

late April. The company sold 2,898 Acuras in2008, about double 2007’s total.

— Kevin Huang

Honda Motor China Investment Co.Suite 301, Beijing Fortune Building, No. 5 N. Dongsanhuan RoadChaoyang District, Beijing 100004, P.R. China(86) 10-6590-9011, www.honda.com.cnTop executive: Atsuyoshi Hyogo, president

JV: Guangzhou Honda Automobile Co.No. 1 Guangben Road, Huangpu District, Guangzhou CityGuangdong Province 510700, P.R. China(86) 20-8227-7789, www.guangzhouhonda.com.cnTop executive: Okawara Eiji, president

Models produced: Honda Accord, Fit,New City, Odyssey

Ownership:Guangzhou Automobile Industry

Group Co. 50%Honda Motor Co. 40%Honda Motor Investment Co. 10%

Models produced: Honda Civic, CR-V Ownership:Dongfeng Motor Corp. 50%Honda Motor Co. 40%Honda Motor Investment Co. 10%

JV: Honda Automobile (China) Co.No. 363 Kai Chuang Ave., East Section, Guangzhou Economic &Technological District, Guangzhou City, Guangdong Province 510760, P.R. China(86) 20-3228-8000Top executive: Masaya Nagai, president

JV: Dongfeng Honda Automobile (Wuhan) Co.No. 283 Checheng Dongdao, Economic & Technical Development ZoneWuhan City, Hubei Province 430056, P.R. China(86) 27-8428-6000, www.dhac.com.cnTop executive: Mitsuru Ozaki, president

Models produced: Honda Jazz (for export)

Ownership:Honda Motor Co. 55%Guangzhou Automobile

Industry Group Co. 25%Honda Motor Investment Co. 10%Dongfeng Motor Group Co. 10%

HONDA CR-V

HONDA ACCORD

2008 2007





12

Hyundai Motor Group (China) Ltd.Room 25, Hyundai Motor Tower, No. 38 Xiaoyun Road,Chaoyang District, Beijing 100027, P.R. China(86) 10-8453-9666, www.hmgc.com.cnTop executive: Tan Tao Hung, president

Models produced: Hyundai Accent,Elantra, Elantra HDC, Sonata, Sonata Lingxiang, Tucson

Ownership:Hyundai Motor Co. 50%Beijing Automotive

Industry Holding Corp. 50%

Models produced: Kia Carnival, Cerato,Cerato H/B, DYK Sportage, Optima, Rio

Ownership:Kia Motors 50%Dongfeng Motor Industry

Investment Co. 25%Jiangsu Yueda Co. 25%

JV: Beijing Hyundai Motor Co.No. 18 Shuntong Road, Linhe Industry Development Area, Shunyi DistrictBeijing 101300, P.R. China(86) 10-8949-0062, www.beijing-hyundai.com.cnTop executive: Jae-Man Noh, president

JV: Dongfeng Yueda Kia Automobile Co.No. 18 Kaifang Road, Yancheng City, Jiangsu Province 224002, P.R. China(86) 515-8833-3808, www.dyk.com.cnTop executive: Chong-Ok Park, CEO

Hyundai Motor Group (China) Ltd. made astrong comeback in 2008. But it relied on onemodel, the Elantra car, for most of its sales.

Elantra sales last year totaled 203,734units, accounting for 66.1 percent ofHyundai-brand sales in China. Theautomaker launched the redesigned Elantrain April 2008 and kept selling the previous-generation Elantra.

Elantra sales remained strong in 2009,partly because the government halved thesales tax to 5 percent on cars with engines of1.6 liters or less. Last year, sales ofdomestically made Hyundais rose 26.3percent in China.

This year, Hyundai’s challenge will be tofind other growth models as new vehicles,particularly from domestic brands, crowdChina’s vehicle segments.

In November, Beijing Hyundai Motor Co.,the company’s largest joint venture inChina, launched a face-lifted mid-sizedsedan based on Hyundai’s seventh-generation Sonata and renamed it theLingxiang.

Lingxiang sales have been modest. InJanuary, Lingxiang sales totaled 1,468.Hyundai kept the old-generation Sonata inits China lineup and it sold 788 units inJanuary.

Hyundai will continue to emphasize smallcars in China. This year, the automakerplans to launch the i30 small car fromHyundai’s Korea lineup in China. In 2010,the company plans to launch an entry-levelcar designed for China to compete withsmall cars from domestic automakers.

To cut costs, Hyundai is allowing moreChinese suppliers to compete with Koreansuppliers, say supplier sources. Parts fromthe automaker’s Korean suppliers tend tomore expensive.

Hyundai’s r&d center, which opened inMay 2008, is working on face-lifted versionsof the Elantra and Sonata. Both models willbe less expensive than the current ones. The

revised Elantra goes on sale this year, andthe revised Sonata will go on sale in 2010.

Beijing Hyundai, the joint venture,doubled its capacity to 600,000 units in 2008by opening a second plant.

Meanwhile, the group’s other joint venture,

Dongfeng Yueda KiaAutomobile Co., sold 142,008units in 2008 — up 40.0 percent,according to the company.

The Kia brand is positionedcarefully in China to avoiddirect competition with leadinginternational brands. In 2008,sales of the Cerato compact carrose 18.4 percent to 74,352, andthe Rio small car jumped 61.5percent to 29,898. Kia’sSportage SUV leaped from5,713 in 2007 to 32,500 units in2008.

Kia hopes to boost sales 30percent, to 185,000 units, in 2009. Kia willroll out two models, code-named TDc andAMc, in China in 2009. The TDc is acompact car based on Kia’s Forte, and theAMc is a compact SUV.

— Lan Lan

2008 2007


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Nissan Motor Co. expects sales growth inChina to slow to 5 percent this year, to570,000 vehicles. That’s down from a 19percent surge in 2008. Nissan’s projectionkeeps it in line with analysts’ forecasts thatChina will expand by only around 5 percentas the global financial crisis hits the economy.

Nissan was the No. 6 global brand in Chinalast year. But it is playing catch-up in theworld’s second-biggest auto market, behindJapanese competitors Toyota and Honda.

One hurdle will be a lack of new models.Nissan got a boost last year from the fournew vehicles. But the only launch planned in2009 is the Infiniti RX50 crossover.

On the other hand, Nissan likely will feel atailwind from China’s planned reduction intaxes on gasoline and vehicles with engines

smaller than 1.6 liters, says KimiyasuNakamura, head of Dongfeng Motor Co.,Nissan’s local venture with China’s DongfengGroup. That should benefit Nissan’s small-car lineup — including the Tiida, the

company’s best-selling passenger vehicle inChina. Tiida sales rose 11.3 percent last yearto 137,193. About 66 percent of Nissan’s salesare cars with engines under 1.6 liters.

Dragging down volume was the Genissminivan, whose sales tumbled 64.6 percentto 3,797 units, making it Nissan’s worst seller.

On the retail side, sales growth is seenmoving inland from coastal cities. Nissan aimsto boost its dealer count to 380 in 2009 and420 in 2010 from 342 at the end of last year.

Nissan is building a plant in Zhenghou, inHeian province, set to open in 2010. Thecompany also wants more local sourcing ofdrivetrains.

Last year, Nissan unveiled the target ofselling 1 million vehicles in China by 2012.

— Hans Greimel



14

China remains a trouble spot forMitsubishi Motors. Sales have slid for twoyears, dropping 15.3 percent to 82,826vehicles in 2008. The company hasn’trevealed a forecast for this year but hastargeted sales of 77,000 in 2010.

Part of Mitsubishi’s restructuring plan is tostrengthen the local sales network and bringin new models. Business is likely to get aboost in 2009 from the introduction of the

redesigned Lancer sporty sedan, whichalready has debuted in other major markets.

The Lancer is Mitsubishi’s best-selling carin China, but the current generation isgetting long in the tooth.

Sales dropped 37.2 percent to 15,479vehicles last year. The new version will bemanufactured locally by Mitsubishi’s jointventure partner, Soueast (Fujian) Motor Co.

Domestic production fell 20.8 percent last

year to 63,270 vehicles. But Mitsubishi ismaking more components in China for localmanufacturers and export. Mitsubishi willstart making automatic transmissions andsmall-displacement engines there this year.

Looking to its retail network, in AprilMitsubishi plans to start a new salescompany, Mitsubishi Motors Sales (China)Co.

— Hans Greimel

Mitsubishi Motors Corp.Nexus Center Room 710, No. 19A East, 3rd Ring Road NorthChaoyang District, Beijing 100020, P.R. China(86) 10-6561-3030, www.mitsubishi-motors.com.cnTop executive: Jun Hiraoka, chief representative

JV: Hunan Changfeng Motor Co.18/F Hualing Building, 111# Second Section, Furong Mid RoadChangsha City, Hunan Province 410011, P.R. China(86) 731-2881-800, www.cfmotors.comTop executive: Li Jianxin, president

Models produced:Liebao, Liebao Feiteng

Ownership:Changfeng Group 50%Others 34%Mitsubishi Motors Corp. 16%

JV: Soueast (Fujian) Motor Co.Dongnan Industrial Area, Fuzhou CityFujian Province 350119, P.R. China(86) 591-2276-6566, www.soueast-motor.comTop executive: Jian Qinglong, general manager

Models produced: Delica, Freeca,Galant, Lancer, Landio, Lioncel,New Space Wagon, Veryca

Ownership:Mitsubishi Motors Corp. 25%Fujian Motor Industry Group 50%Taiwan China Motor Corp. 25%

Nissan (China) Investment Co.13/F, South Tower of Beijing Kerry Centre, No. 1 Guang Hua RoadChaoyang District, Beijing 100020, P.R. China(86) 10-8529-8181, www.nissan.com.cnTop executive: Kayashima Yukihisa, CEO

JV: Dongfeng Motor Co./Dongfeng Nissan Passenger Vehicle Co.

No. 8 Fengshen Road, Huadu, Guangzhou,Guangdong Province 510800, P.R. China(86) 20-8687-0670, www.dongfeng-nissan.comTop executive: Mamoru Yoshida, general manager

Models produced: Nissan BluebirdSylphy, Geniss, Livina, Qashqai, Teana,Tiida, X-Trail

Ownership:Nissan (China) Investment Co. 50%Dongfeng Motor Group Co. 50%

JV: Zhengzhou Nissan Automobile Co.No. 1405, East Hanghai Road, Zhengzhou Economic & Technical ZoneZhengzhou City, Henan Province 450016, P.R. China(86) 371-6603-3666, www.zznissan.com.cnTop executive: Guo Zhenfu, general manager

Models produced: Nissan MPV,NT400 Cabstar, Paladin, Pickup, Rich,SUV

Ownership:Dongfeng Motor Group Co. 51%Dongfeng Motor Co. 29%Nissan Motor Co. 20%

NISSAN TIIDA

2008 2007


2008 2007





15

Suzuki Motor Corp. has been working toimprove its brand image in China. With an11.2 percent boost in sales to 178,853 last yearcompared with 2007, it is making progress.

The automaker pulled the aging Alto smallcar from the market in October, eliminatinga large chunk of Suzuki sales volume. In2007, the Alto accounted for 19.9 percent ofSuzuki’s sales in China.

The introduction of a redesigned Alto atyear end will bring back some volume, saysJohn Zeng, an analyst at Global Insight inShanghai.

The SX4 provided good news. Sedan and

hatchback versions sold 38,886 units lastyear, up 81.9 percent.

Suzuki needs to start local production ofits small SUVs, says Zeng, because last yearthe government cut the sales tax onvehicles with engines under1.6 liters.Suzuki could build sales in China’s ruralinterior, whose customers need versatile,inexpensive vehicles that can carry goodsand people.

But brand image needs furtherimprovement. Zeng says Suzuki still isconsidered a mediocre brand in China.

— Namrita Chow SUZUKI SX4

JV: Chongqing Changan Suzuki Automobile Co.Yudong Town, Banan District, Chongqing 401321, P.R. China(86) 23-6628-8623, www.changansuzuki.comTop executive: Tadashi Kondo, vice chairman & president

Models produced: Suzuki Alto, Gazelle,Swift 1.3, Swift 1.5, SX4

Ownership:Changan Automobile Co. 51%Suzuki Motor Corp. 25%Sojitz Corp. 14%Suzuki Motor (China)

Investment Co. 10%

JV: Jiangxi Changhe Suzuki Automobile Co.No. 1 East Road, Jindezhen City, Jiangxi Province 333002, P.R. China(86) 798-8462-611, www.changhe-suzuki.comTop executive: Tong Zheng Rong, president

Models produced: Liana, Landy,North Star (Suzuki Wagon R+)

Ownership:Changhe Group 51%Suzuki Motor Corp. 25%Suzuki Motor China

Investment Co. 21%Okaya 3%

PSA Peugeot Citroen GroupBeijing Office,19B unit, HanWei Plaza, No. 7 Guanghua RoadChaoyang District, Beijing 100020, P.R. China(86) 10-5927-5700, www.psa.net.cnTop executive: Claude Vajsman, CEO of PSA Peugeot-Citroen

JV: Dongfeng Peugeot Citroen Automobile Co.No. 165 Shenlong Ave.Wuhan Economic-Technological Development ZoneWuhan City, Hubei Province 430056, P.R. China(86) 27-8429-9882, www.dpca.com.cnTop executive: Liu Weidong, general manager

Models produced: Citroen C2, C-Elysee, C-Quatre,C-Triomphe, Picasso, New Xsara;Peugeot 206, 207, 307

Ownership:PSA Peugeot Citroen 50%Dongfeng Motor Industry

Investment Co. 50%

PSA/Peugeot-Citroen SA is counting on anew platform and two mid-sized sedans torevive sales in China.

On the new platform, PSA will startproducing the Citroen C5 mid-sized sedanin the second half of this year. The companyalso will produce the Peugeot 408 sedan,suppliers say, but the timetable isunavailable.

The cars will be built at a new plant forDongfeng Peugeot Citroen Automobile Co.,PSA’s joint venture with Dongfeng MotorCorp.

The two new mid-sized cars are importantbecause Dongfeng Peugeot Citroenproduces mainly small cars such as theCitroen C2 and Peugeot 207 and compactssuch as the Elysee sedan and C-Quatre.

Currently, PSA’s only mid-sized car is theC-Triomphe sedan, launched in 2006. Butsales of the vehicle were poor in 2008:

14,201 units, down 54.6 percent from 2007.With the new plant, PSA’s annual capacity

in China will grow to 450,000 units. Theexisting plant can produce 300,000 a year.

PSA was one of four global automakerswhose sales in China were lower last year

than in 2007. The others were GeneralMotors, Ford Motor Co. and MitsubishiMotors Corp.

Dongfeng Peugeot Citroen sold 178,308 oflocally produced vehicles in 2008, down 14.0percent from 2007.

The market’s slowdown hurt PSA. Butsome PSA models, such as the XsaraPicasso, are considered too avant-garde forthe tastes of most Chinese consumers.

PSA has not brought its newest modelsand technologies to China, says John Zeng,an analyst with Global Insight in Shanghai.Moreover, he says, some PSA cars sold inChina, such as the Citroen C2 and Peugeot207, compete with each other.

In June 2007, PSA agreed with Hafei MotorCo., a minor Chinese automaker, to form ajoint venture to produce small vehicles. Butlittle progress has been made on the project.

— Kevin Huang

Suzuki Motor (China) Investment Co.Room 2102, Beijing Fortune Building, No. 5 Dongsanhuan Bei LuChaoyang District, Beijing 100004, P.R. China(86) 10-6590-8040, www.suzuki-china.comTop executive: Toshiaki Hashimoto, president

CITROEN C-QUATRE

2008 2007


2008 2007





16

Toyota Motor Corp. leapfrogged GeneralMotors in 2008 as China’s No. 2 automaker,behind Volkswagen AG. This year, expectToyota to keep growing, but at a lower rate.Sales of its top two sellers, the Camry andCorolla, started slipping in November 2008.

Including imports, Toyota posted a 17percent sales gain, to about 585,000 units, inChina in 2008, according to Toyota MotorChina Investment Co.

Toyota’s growth in China last year wasfueled by the Corolla sedan. The companylaunched a face-lifted version of the Corollain China in 2007 and continued selling theprevious generation. Combined sales of thenew and old Corolla totaled 217,519 unitslast year, up 67.5 percent.

Despite the impressive growth, Toyota isnot immune to the global auto downturn.The company has not announced salestargets for 2009, but both of its jointventures have modest expectations.

FAW Toyota Motor Sales Co., the marketing

company for Toyota products built withChina FAW Group Corp. in China, plans tosell 380,000 vehicles this year, up 8 percent.The company’s sales grew 25 percent in 2008.

Meanwhile, the joint venture GuangzhouToyota Motor Co. plans to sell only 150,000Camrys this year. The company sold 170,382Camrys in 2007 and 152,834 in 2008.

In mid-2008, Guangzhou Toyota launchedthe Yaris small car. But sales totaled adisappointing 19,170 during the year.

Guangzhou Toyota will launch one newmodel this year: the Highlander SUV.

Despite slower growth in China, Toyota isexpanding the production capacity of itsjoint ventures.

In north China, Toyota is building a newplant with FAW in Changchun, with aplanned capacity of 100,000 units per year.The company is also expanding capacity to150,000 units from 100,000 at a joint ventureplant with FAW that makes the Crown andReiz sedans.

In south China, Toyota’s joint venture withGuangzhou Automobile Industry Group isbuilding a second plant with an initialannual capacity of 120,000 units. Productionis scheduled to start in mid-2009. When thethree projects are finished, Toyota’s capacityin China will be 910,000 units in 2010.

— Kevin Huang

TOYOTA YARIS

Toyota Motor China Investment Co.Room 3806-11, Jin Guang Center, Hujialou,Chaoyang District, Beijing 100020, P.R. China(86) 10-6597-8728, www.toyota.com.cnTop executive: Masahiro Kato, general manager

Models produced:Toyota Corolla EX, Vios

Ownership:Toyota Motor Corp. 40%FAW Xiali Automobile Co. 30%First Auto Works 20%Toyota Motor Investment Co. 10%

JV: Tianjin FAW Toyota Motor Co. — Plant 1No. 2, Liuli Road, Yang Liu Qing, Xiqing District, Tianjin 300380, P.R. China(86) 22-2794-4050, www.tftm.com.cnTop executive: Hayato Sibakawa, general manager

Tianjin FAW Toyota Motor Co. — Plant 2No. 81 9th Ave., Tianjin Tai Da Economic-Technological Development AreaTianjin 300457, P.R. China(86) 22-6623-0666, www.tftm.com.cnTop executive: Hayato Sibakawa, general manager

Models produced: Toyota Crown, Reiz


Models produced: Toyota Coaster, Prado

Ownership:FAW Group 50%Toyota Motor Corp. 45%Toyota Tsusho Corp. 5%

JV: Sichuan FAW Toyota Motor Co. — Plant 1No. 9 Tiaodenghe South Road, Chenghua District, Chengdu City,Sichuan Province 610051, P.R. China(86) 28-8471-7126, www.sftm.com.cnTop executive: Hoshino Haruaki, general manager

Models produced: Toyota Land Cruiser, Prius

Ownership:FAW Group 50%Toyota Motor Corp. 45%Toyota Tsusho Corp. 5%

Changchun Fengyue Company of SFTMNo. 5 Dongfeng St., Changchun City, Jilin Province 130011, P.R. China(86) 431-8578-6808, www.sftm.com.cnTop executive: Hoshino Haruaki, general manager

JV: Guangqi Toyota Motor Co.No. 8 Huangge Duan Huangge Zhen, Shi Nan RoadNansha Economic Development District, Guangzhou CityGuangdong Province 511400, P.R. China(86) 20-3939-8888, www.guangzhoutoyota.com.cnTop executive: Kuzuhara Toru, general manager

Models produced:Toyota Camry, Yaris

Ownership:Guangzhou Automobile

Industry Group Co. 50%Toyota Motor Corp. 31%Toyota Motor Investment Co. 19%

Tianjin FAW Toyota Motor Co. — Plant 3No. 81 9th Ave., Tianjin Tai Da Economic-Technological Development AreaTianjin 300457, P.R. China(86) 22-6623-0666, www.tftm.com.cnTop executive: Hayato Sibakawa, general manager

Models produced: Toyota Corolla


2008 2007





17

In 2008, Volkswagen AG became the firstautomaker to sell more than 1 million lightvehicles in a year in China.

Sales, including imports, totaled 1,024,008units, up 12.5 percent from 2007, VW said.Sales of China-made vehicles were up 9.4percent to 983,436, according to JATODynamics.

China should replace Germany as VW’slargest market this year — althoughWinfried Vahland, Volkswagen ChinaGroup’s CEO, plays down this achievement.

Audi is a particularly strong performer forVW. The brand now accounts for 64 percentof the luxury market in China.

VW China Group’s investment now isfunded entirely by its own profits, saysVahland. He says he will stick to a plan toplow 2.4 billion euros ($3.27 billion) backinto the business from 2008 through 2010.

Vahland says the money will be used todevelop new products and technologiesrather than building additional capacity.

Last year VW launched its first two sedansdeveloped for China, the Volkswagen Boraand Lavida. Two other new products werethe Audi A4L and Skoda Fabia. After beingintroduced in China in 2007, the Skodabrand will launch a third model this year,the Superb.

Other new products will include the AudiQ5, the sixth-generation VW Golf and thenfive to seven new or redesigned China-mademodels this year or next, says Vahland.

VW used to be the strongest advocate forthe mass use of clean diesel in China. Sincethe Chinese government went cold on thetechnology last year, VW China’s favoredgreen solution has been advanced gasolinepowertrains. These combine dual-clutchgearboxes, direct injection and smallturbocharged engines.

Vahland says 80 percent of VW’s futureproducts will offer the new powertrains asan option. But given the lower price ofgasoline, demand is not likely to be large.

“Current incentives are not big enough for

Chinese motorists to want these fancytechnologies,” says Duan Chengwu, ananalyst at industry consultants Global Insight.

Last year VW completed a program tointegrate purchasing for its two Chinamanufacturing joint ventures. The company

has come a long way with local sourcingsince its first China-made vehicle rolled offthe line 25 years ago. Then, only the horns,tires and radios could be provided byChinese factories.

But more than 95 percent of parts used tomake the new Lavida and Bora now aresourced locally. For VW China as a whole,the figure is more than 90 percent.

In April last year, VW moved someproduction of its 28-year-old Santana modelfrom Shanghai and up the Yangtze toNanjing. The aim was to supply cheap carsto inland provinces, where incomes arelower but the market is growing faster.

But amid the current downturn, in JanuaryVW said it was suspending plans to addcapacity to a small plant farther up the riverin Chengdu. Since 2007, this plant has beenmaking another old model, the Jetta.

— Steven Ribet

Volkswagen (China) Investment Co.Building 2, No. 3A, Xi Liu Jie, Sanlitun Road,Chaoyang District, Beijing 100027, P.R. China(86) 10-6531-3131, www.volkswagen.com.cnTop executive: Winfried Vahland, president & CEO

JV: FAW-Volkswagen Automotive Co.Dongfeng Street, Changchun, Jilin Province 130011, P.R. China(86) 431-8599-0888, www.faw-volkswagen.comTop executive: An Tiecheng, president

Models produced: Audi A4L, A6L;VW Bora classic, New Bora, Golf,Magotan, Jetta, Sagitar

Ownership:China FAW Group Corp. 60%Volkswagen AG 20%Volkswagen Investment Co. 10%Audi AG 10%

JV: Shanghai Volkswagen Automotive Co.No. 63, Luo Pu Road, An Ting, Jiading District, Shanghai 201805, P.R. China(86) 21-5956-1888, www.csvw.comTop executive: Liu Jian, Managing director

Models produced: VW Lavida, Lingyu,Passat, Touran, Polo, Cross Polo,Santana, Santana Vista; Skoda Fabia,Octavia

Ownership:Shanghai Automotive Industry Corp. 50%Volkswagen AG 40%Volkswagen Investment Co. 10%

AUDI A4L

VOLKSWAGEN LAVIDA

2008 2007



C H I N A

MONGOLIAAN

NEPAL

MYANMARLAOS

PHILIPPINES

JAPAN

VIETNAM

Guangdong

Tianjin

Sichuan

Shaanxi

ShandongShanxi

Shanghai

Beijing

Ningxia

Inner Mongolia Liaoning

Guizhou

Guangxi

Gansu

X i z a n g

X i n j i a n g

Hubei

Hunan

Hebei

Henan

Heilongjiang

Fujian

Qinghai

Jilin

Jiangsu

Jiangxi

Zhejiang

Anhui

Hong Kong

Taiwan

Hainan

Yunnan

Chongqing

P R O D U C T I O N F A C I L I T I E S I N C H I N A

2009 GUIDE TO CHINA’S AUTO MARKET Automotive News • JATO DYNAMICS

18

1 - BMW Brilliance Automotive Ltd. Shenyang, Liaoning Province

2 - Beijing Benz-DaimlerChrysler Automotive Co.Beijing

3 - Changan Ford Mazda Automobile Co.Chongqing

4 - Jiangling Motors Corp.Nanchang, Jiangxi Province

5 - Shanghai GM (Shenyang) Norsom Motors Co.Shenyang, Liaoning Province

6 - SAIC-GM-Wuling Automobile Co.Liuzhou, Guangxi Province

7 - Shanghai General Motors Corp.Shanghai

8 - Shanghai GM Dongyue Motors Co.Yantai, Shandong Province

9 - Guangzhou Honda Automobile Co. Guangzhou, Guangdong Province

10 - Dongfeng Honda Automobile (Wuhan) Co.Wuhan, Hubei Province

11 - Honda Automobile (China) Co.Guangzhou, Guangdong Province

12 - Beijing Hyundai Motor Co.Beijing

13 - Dongfeng Yueda Kia Automobile Co. Yancheng, Jiangsu Province

14 - Hunan Changfeng Motor Co.Changsha, Hunan Province

15 - Zhengzhou Nissan Automobile Co.Zhengzhou, Henan Province

16 - Dongfeng Peugeot Citroen Automobile Co.Wuhan, Hubei Province

17 - Chongqing Changan Suzuki Automobile Co.Chongqing

18 - Jiangxi Changhe Suzuki Automobile Co. Jingdezhen, Jiangxi Province

19 - Tianjin FAW Toyota Motor Co.Tianjin

20 - Sichuan FAW Toyota Motor Co.Chengdu, Sichuan Province

21 - Sichuan FAW Toyota Motor Co. Changchun, Jilin Province

22 - FAW-Volkswagen Automotive Co. Changchun, Jilin Province

23 - Shanghai Volkswagen Automotive Co.Shanghai

24 - Dongfeng Nissan Passenger Vehicle Co.Guangzhou, Guangdong Province

25 - Guangzhou Toyota Motor Co.Guangzhou, Guangdong Province

26 - Soueast (Fujian) Motor Co.Fuzhou, Fujian Province

1 - Dongfeng Liuzhou Motor Co. Liuzhou, Guangxi Province

2 - Dongfeng Automobile Co. Xiangfan, Hubei Province

3 - FAW Car Co. Changchun, Jilin Province

4 - FAW Haima Automobile Co. Haikou, Hainan Province

5 - Tianjin FAW Xiali Automobile Co.Tianjin

6 - Chery Automobile Co. Wuhu, Anhui Province

7 - Anhui Jianghuai Automobile Co. Hefei, Anhui Province

8 - Shenyang Brilliance Jinbei Automotive Co. Shenyang, Liaoning Province

9 - BYD Auto Co. Xian, Shaanxi Province

10 - Jiangxi Changhe Automobile Co. Jingdezhen, Jiangxi Province

11 - Zhejiang Geely Automobile GroupHangzhou, Zhejiang Province

12 - Great Wall Motor Co. Baoding, Hebei Province

13 - Hafei Motor Co. Harbin, Heilongjiang Province

14 - Hebei Zhongxing Automobile Co. Baoding, Hebei Province

15 - Rongcheng Huatai Automobile Co. Rongcheng, Shandong Province

16 - Jiangxi Jiangling Holding Co.Nanchang, Jiangxi Province

17 - Beijing Automobile Works Co.Beijing

18 - Chongqing Changan Automobile Co.Chongqing

19 - Chongqing Lifan Automobile Co.Chongqing

20 - Hunan Jiang Nan Automobile Co.Xiangtan, Hunan Province

21 - SAIC Motor Co.Shanghai

Global automakers/Joint ventures Domestic automakers

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AN-Supplement.qxd 4/8/2009 4:04 PM Page 1

China’s domestic automakers, losingmarket share to international competition,will fight back with more models in 2009.

The top 25 domestic automakers soldabout 2.5 million locally producedpassenger vehicles in 2008, up 3.5 percentfrom a year earlier. But the entire market oflocally produced passenger vehicles rose 6.9percent, according to JATO Dynamics.

The domestics were hurt by slumpingexports to other emerging markets and byweak brand images in China. Many Chineseconsumers prefer the prestige and higherquality of overseas brands.

In 2009, many domestics are fighting backwith new and redesigned models. And atleast two major state-owned automakers willstart making sedans of their own brands.

Chery Automobile Co. plans to launch 15new and redesigned cars in 2009. BYD AutoCo. and Great Wall Motor Co. say they willlaunch several new models this year.

Their efforts to reclaim market share havewon the support of the Chinesegovernment.

Domestic automakers mainly build small,inexpensive vehicles. Since late 2008, the

government has enacted tax policies toencourage cars with small engines.

The government also plans to offerincentives for farmers to buy small vans andpickups. Chery and Haima Automobile Co.are gearing up to build those vehicles.

Among the domestics, the Wuling brandhas become a clear leader in the ruralmarket. Its top-selling small van is useful forpeople and cargo. General Motors owns 34percent of SAIC-GM-Wuling AutomobileCo., which produces the Wulings.

This year, two major state-owned

automakers, Beijing Automotive IndustryHolding Corp. and Dongfeng Motor Co.,plan to launch their own brands forpassenger vehicles.

China’s auto industry is highly fragmented,with many small automakers struggling tostay alive. Many are subsidized by provincialgovernments eager for the prestige, jobs andtax revenue that automakers provide.

About two-thirds of the top 25 domesticautomakers are state-owned. The centralgovernment wants to encourage state-owned automakers to consolidate. But theconsolidation will take time becauseprovincial governments control most of thestate-owned auto companies.

Earlier this year, the central governmentstarted a pilot program to offer generousincentives to taxi and other fleet operatorsto buy alternative-energy cars: a fixedamount of $8,770 for an electric car and upto $7,310 for a hybrid.

Various domestics, such as BYD andChery, are scrambling to develop hybridsand electric vehicles. The performance ofthose cars has not been widely tested.

— Yang Jian

D O M E S T I C A U T O M A K E R S


20

To take back market share, more models on way

When Xu Heyi was named chairman ofBeijing Automotive Industry Holding Corp.in late 2006, the former Beijing governmentofficial vowed to rebuild the state-ownedcompany.

Xu wants BAIC to join other state-ownedautomakers, such as Shanghai AutomotiveIndustry Corp. and China FAW Group Corp.,in the top tier of China’s auto industry. But2½ years after his appointment, he is onlypartway through his effort.

Xu is strengthening BAIC’s ability to supplyhigh-quality parts. He formed 12 jointventures with global suppliers such asDelphi Corp. and Visteon Corp. BAIC alsohas 11 wholly owned parts suppliers.

Nevertheless, BAIC’s two joint-ventureautomakers, Beijing Hyundai Motor Co. andBeijing Benz-DaimlerChrysler AutomotiveCo., still rely heavily on imported parts.

BAIC has a 38 percent stake in Beiqi FotonMotor Co., China’s largest commercial-vehicle maker. But Beiqi Foton largely

operates independently and last yearlaunched its first passenger vehicle, thegasoline-powered Midi minivan. Fotonplans to build an electric car based on thesame platform.

To grow, BAIC has long wanted to acquiresmaller domestic automakers, includingSoutheast Motor Corp. and ChangfengMotor Co.

Southeast and Changfeng are underincreasing pressure as competition grows,and China’s central government isencouraging state-owned automakers tobuy competitors. So look for BAIC to makesome acquisitions in 2009.

Meanwhile, BAIC in 2008 hired WangDazong, a U.S.-trained engineer and formerSAIC technology chief, to develop its brand.

The company has been talking aboutdeveloping a sedan using a Mercedes-Benzfour-cylinder gasoline engine, but the plan isincomplete. BAIC also is working withTsinghua University in Beijing to buildhybrid vehicles, which use a gasoline engineand one or more electric motors to powerthe wheels.

Xu wants BAIC to unveil at least one carunder its own brand each year starting in2010. But it is unclear whether BAIC, withdeep roots as a state-owned company, canmove as quickly as Xu hopes.

— Yang Jian

Beijing Automotive Industry Holding Corp.No. 25, Dong San Huan South Road, Chaoyang DistrictBeijing 100021, P.R. China(86) 10-6769-9888Top executive: Xu Heyi, chairman

Global JVsBeijing Benz-DaimlerChrysler Automotive Co. – Beijing – Mercedes-BenzC class, E class (Page 6)Beijing Hyundai Motor Co. – Beijing – Hyundai Accent, Elantra, Elantra HDC,Sonata, Sonata Lingxiang, Tucson (Page 12)

2008 2007


Models produced:Jeep, Luba, Qishi

Ownership:Bejing Automotive Industry Corp. 100%

Beijing Automobile Works Co.No. 51, Fangjiacun, Guangqu East Road, Chaoyang DistrictBeijing 100022, P.R. China(86) 10-8774-3332, www.baw.com.cnTop executive: Yao Changsheng, president

FOTON MIDI

WULING’S SMALL VAN IS A TOP SELLER IN CHINA.




21

BYD Auto Co.’s ambitious growth planswere endorsed last year by Warren Buffett,America’s richest investor.

A Buffett company invested $230 millionin BYD so the company could develophybrid and electric vehicles and batteries.

Buffett’s investment — and parent BYDCo.’s expertise in lithium ion batteries —have transformed BYD into a player towatch closely in China’s auto industry.

BYD Auto, in the south China city ofShenzhen, is a relative newcomer in thatindustry. BYD Co., founded by entrepreneurWang Chuanfu, is a top global supplier oflithium ion batteries for cell phones.

BYD Auto started producing cars in 2005and has posted solid sales since — 170,882in 2008, up 70.7 percent from 2007.

John Zeng, an analyst at Global Insight inShanghai, says BYD has a good feel for theauto tastes of Chinese consumers. Thecompany sold four gasoline cars in 2008.

BYD plans to launch five models in 2009— the F6DM plug-in hybrid; the E6, aseven-seat electric van; and three gasoline-powered vehicles: the F8 roadster, M6 vanand F5 mid-sized sedan.

The company plans to sell 400,000vehicles this year, with about 10 percent forexport. BYD exported about 20,000 vehiclesin 2008, mainly to Russia and the MiddleEast.

In December 2008, the company launchedsales of its first alternative-energy vehicle,

the F3DM plug-in hybrid. But the hybrid ispriced at $21,932, nearly three times the

price of the gasoline-version F3. BYD wants to start selling vehicles in the

United States and Europe in 2011. But as oflate 2008, it was still working on a detailedplan.

The company says it plans to sell mainlyelectrics and hybrids in the United Statesand Europe.

BYD plans to target corporate andinstitutional buyers, such as taxi companiesand courier services.

— Kevin Huang

For Chery Automobile Co., 2008 was atough year.

Sales in China dropped 6.1 percentcompared with 2007, to 356,093 units.Chery’s best-selling model remains theinexpensive QQ. And a joint venture toassemble cars with Chrysler LLC collapsed.

This year Chery plans a comeback, with theautomaker saying it is releasing 16 new orredesigned models under four new brands.

Moreover, the Chinese government cut inhalf, to 5 percent, the sales tax on cars withengines of 1.6 liters or smaller. That will helpthe QQ and other inexpensive Chery models.

Chery now sells 11 cars in China, rangingfrom the QQ and other compact cars to theTiggo SUV. The company also is trying tobuild a luxury brand in a joint venture with

Quantum LLC, an arm of an Israeli companycalled Israel Corp. The joint venture, of whichChery owns 55 percent, is expected to beginwith four luxury models. It has not said when

the luxury cars will go on sale. Chery stilldreams of entering North America andEurope. But for now it is concentrating onthe Middle East and South America.

Chery says it exported 135,000 cars in2008, 10 percent more than in 2007.

Chery has plants in Ukraine, Russia, Egypt,Iran, Indonesia, Uruguay and Malaysia.Chery cars were exported to 60 countries in2008, the company says.

Chery is also developing hybrid vehicles.In January it launched a BSG mild hybridversion of the A5 small car. Chery also plansto fit its A3 small car with a belt-drivenstarter generator, which turns a car into amild hybrid by providing assistance to thegasoline engine.

— Namrita Chow

BYD Auto Co.No. 2 Yadi Road, Xinxing Industry GardenHigh-Tech Industrial Development ZoneXian City, Shaanxi Province 710119, P.R. China(86) 29-8888-9999, www.bydauto.com.cnTop executive: Wang Chuanfu, president

2008 2007


Models produced:F3, F3R, F6, F8, F0, F3DM Hybrid

Ownership:BYD Co. 99%Shaanxi Investment Group 1%

BYD E6

Chery Automobile Co.No. 8 Changchun Road, Economic-Technological Development AreaWuhu City, Anhui Province 241009, P.R. China(86) 553-5923-805, www.chery.cnTop executive: Yin Tongyao, president & general manager

2008 2007


Models produced:A1, A3, A5, Easter, Easter Cross, Karry,New Qiyun, QQ3, QQ6, Tiggo 3

Ownership:Chery Automobile Co. 100%

CHERY QQ

BYD F8 ROADSTER


China FAW Group Corp., which is losingground to other large state-ownedautomakers, will try to build momentumwith new models for its own brands in 2009.

Subsidiary FAW Car Co., in the northernChinese city of Changchun, plans to launchthe Besturn B50, a sedan similar in size to theVolkswagen Jetta. The model will share a 1.6-liter engine with the VW Sagitar, FAW says.

Sales of the Besturn B70 sedan aboutdoubled last year to 47,750. The car is basedon the platform of the previous-generationMazda6.

FAW Car’s luxury brand, Red Flag, soldonly 2,167 units in 2008. Late in the year,FAW lowered the price of the Red Flag car —to little effect because of the brand’soutdated image and technology.

FAW Car has an annual productioncapacity of 120,000 for three models: theBesturn B70, Mazda6 sedan and Red FlagHQ3 sedan. FAW makes the Mazda6 under alicensing agreement with that automaker.

FAW Car plans to add annual capacity of200,000 to its plants in 2010. The newcapacity will be used mainly to make theB50 and a new smaller car.

Meanwhile, subsidiary Tianjin FAW XialiAutomobile Co., in the northern port city ofTianjin, will start selling the TFC-M1 andTFC-M2 small cars in 2009. They willreplace the Xiali N3 and Weizhi.

Sales of the Xiali N3 dropped 8.7 percentto 120,970 last year as domestic automakersadded more entry-level competitors.

In Mexico last year, FAW Group sold morethan 5,000 Xiali and Vita small cars at 18dealerships established by the SalinasGroup, a Mexican conglomerate withinterests in financial services,communications and retailing.

Meanwhile, responding to calls from theChinese government for alternate-energyvehicles, FAW Group’s r&d center isdeveloping a hybrid with a 1.3-liter enginebased on the Besturn B70. The center is also

working on an electric version of its Vetasmall car.

FAW Group is China’s second-largestautomaker, counting sales of its ownbrands, joint ventures and commercialvehicles. FAW is widely regarded as a large,slow-moving, state-owned company that isfalling behind more market-oriented rivals.

Two years ago, FAW lost its lead as China’s

top vehicle maker to Shanghai AutomotiveIndustry Corp. It soon may give up secondplace to Dongfeng Motor Corp.

FAW and its joint venture partners sold1.53 million vehicles in 2008, up 2.6 percentfrom 2007, while SAIC sold 1.72 million andDongfeng sold 1.32 million. Both SAIC andDongfeng enjoyed double-digit growth,according to the Chinese Association ofAutomobile Manufacturers.

One bright spot for FAW is Tianjin FAWToyota Motor Co. Its sales rose 29.1 percentto 346,764 units in 2008, according to JATODynamics. The joint venture sells the ToyotaVios, Corolla, Crown and Reiz sedans.

FAW and General Motors are in discussionsto create a light commercial-vehicle jointventure in China, the two sides say.

— Lan Lan


China FAW Group Corp.No. 2259 Dongfeng St., ChangchunJilin Province 130011, P.R. China(86) 431-8765-5827, www.faw.com.cnTop executive: Xu Jianyi, chairman

Models produced: Vizi, Vela, Weizhi,Xiali N3

Ownership:China FAW Group Corp. 48%Tianjin Automotive

Industry Corp. 32%Public shares 20%

Domestic JV: Tianjin FAW XialiAutomobile Co.

Lilou Nan, Zhong Bei Xie Xiang, Xiqing DistrictTianjin Province 300380, P.R. China(86) 22-8791-5000, www.tjfaw.com.cnTop executive: Wang Gang, general manager

Models produced: Besturn, BesturnB50, Besturn B70, Mazda6, Red Flag

Ownership:China FAW Group Corp. 53%Public shares 47%

Domestic JV: FAW Car Co.No. 4888 Weishan Road, High TechnologyDevelopment Zone, Changchun City, JilinProvince 130012, P.R. China(86) 431-8578-1576, www.fawcar.com.cnTop executive: Zhang Pijie, general manager

Global JVsTianjin FAW Toyota Motor Co. – Tianjin – Toyota ViosCorolla, Corolla EX, Crown, Reiz (Page 16)Sichuan FAW Toyota Motor Co. – Chengdu, SichuanProvince; Changchun, Jilin Province – Toyota CoasterLand Cruiser, Prado, Prius (Page 16)FAW-Volkswagen Automotive Co. – Changchun, JilinProvince – Audi A4L, A6L; VW Bora Classic, Golf, Jetta,Magotan, New Bora, Sagitar, (Page 17)

D O M E S T I C A U T O M A K E R S22

2008 2007


FAW BESTERN B70




23

Chongqing Changan Automobile Co. isadding a line of family cars to its successfulsmall-van portfolio. So far, though, its carsales have been disappointing.

Changan launched a subcompact sedan,the V101, in March, and a hatchback versionof its Z-Shine mid-sized sedan is due laterthis year.

The company’s first model was the Benbensmall hatchback, which went on sale in late2006. Since then it has added the Joiceseven-seat van, a hybrid Joice and the Z-Shine(CV8).

Sales of Changan’s four passenger vehiclesin China were 40,698 units last year, downby 15.4 percent from 2007, says JATODynamics.

The Benben’s sales were 39,036 units lastyear. Sales of the other models have beenpoor. The company sold only 509 units ofthe Joice last year, while sales of the Z-Shinewere 1,153 in 2008.

Meanwhile, the company says its sales ofvans, including commercial models, grew by2 percent in 2008, to 362,000 units.

A major challenge for Changan is to makeits brand stand for more than just vans.

Zhu Huarong, Changan’s engineeringchief, says the company is developing morethan 30 new or redesigned models onseveral platforms.

Zhu says most of the models are sedansand several are crossovers, with enginesfrom 1.8 to 2.4 liters. Most of these new carswill be launched before 2012, he says.

Changan also has two foreign jointventures in Chongqing and one domesticjoint venture in Nanchang city, Jiangxiprovince. The joint venture with Ford andMazda — Changan Ford Mazda AutomobileCo. — suffered lower sales last year. Thecompany sold 204,675 vehicles in 2008,down 6.0 percent from 2007.

But its joint venture with Suzuki —Changan Suzuki Automobile Co. —recorded a 14.7 percent increase last year to124,123 units.

Sales of Jiangxi Jiangling Holding Co.,Changan’s domestic joint venture withJiangling Motors Co., also dropped last year.It sold 8,101 vehicles in 2008, down by about29.6 percent from 2007.

— Kevin Huang

Domestic JV: Jiangxi Jiangling Holding Co.No. 99 Liantan Town, North Denghu Road, Nanchang CityJiangxi Province 330200, P.R. China(86) 791-5216-666, www.landwind.comTop executive: Lu Shuifang, general manager

Models produced: Fenghua,Fashion, Landwind, X6, X9

Ownership:Chongqing Changan

Automobile Co. 50%Jiangling Motors Co. 50%

Chongqing Changan Automobile Co.No. 260 Jian Xin East Road, Jiang Bei DistrictChongqing 400023, P.R. China(86) 23-6759-0114, www.changan.com.cnTop executive: Yin Jiaxu, president

2008 2007


Models produced: Benben/Benni,CM8, Joice, V101, Yuexiang, Z-Shine

Ownership:China South Industrial Automobile Co. 54%Public shares 46%

FROM TOP: CHANGANV101, JOICE AND Z-SHINE.


After making a fortune producingmotorcycles, Yin Mingshan, president ofChongqing Lifan Holdings, started makingcars in 2006.

Just two years later, Yin obtained a $90million investment from insurance giantAmerican International Group Inc. Yes, thatA.I.G., the company at the center of thecollapse of the credit market in the UnitedStates and now controlled by the U.S.government.

Indirectly, the United States owns about 14percent of Lifan. Yin told newspapers inChina that so far, A.I.G.’s troubles have notbothered his company.

Lifan’s automaking subsidiary, ChongqingLifan Automobile Co., is aiming high.

Lifan Automobile sold 33,112 cars in 2008,up 10.0 percent from 2007, according to

JATO Dynamics. About two-thirds of its carswere exported to small markets.

Lifan makes four models: the 520 sedan,520i hatchback, 620 sedan and 320 smallcar. They are priced between $5,800 and$11,700.

In 2009, the company plans to adda minivan, SUV and electric car. Theelectric will be based on the 520 andwill look a lot like the Mini Cooper.

In 2010, Lifan plans to launch apremium model called the 720 and amultipurpose vehicle. The companyalso is working to increase exports andhas built assembly plants in Vietnam,Egypt, Ethiopia, Russia and Iran.

With the support of Italy’s MartinMotors, Lifan plans to sell its 520 and520i under the Martin badge in

Europe this year. The two cars are fitted witha 1.6-liter gasoline engine produced inBrazil by Tritec Motors, an engine companysold to Fiat Powertrain Technologies byChrysler LLC in 2008.

— Yang Jiana


Dongfeng Motor Corp., a large state-owned automaker that builds mainly trucksand buses, will take a huge step forward inthe first half of 2009, when it plans to startproducing its own brand of cars.

The brand is called Fengshen, or Aeolus inEnglish. Aeolus used to be the brand ofDongfeng’s joint venture with Taiwan’s YulonMotor Co. and Nissan Motor Co. But thebrand went out of production in 2003 afterDongfeng and Nissan established closer tiesand launched the Nissan brand here.

The first Dongfeng sedan, the Aeolus S30,debuted at the Shanghai auto show thismonth. The small sedan, powered by a 1.6-liter gasoline engine, competes against theBuick Excelle and Hyundai Elantra.

Dongfeng has ambitious plans to assemblea lineup of large sedans to build its brandimage, along with inexpensive smaller cars

to boost sales. The automaker has notreleased a timetable for the new cars.

Parts for Fengshen will be supplied by 188companies — including some globalsuppliers, such as Visteon Corp., Robert BoschGmbH and Delphi Corp., says Dongfeng. Thecompany just finished building an r&d centerand plant in the central China city of Wuhan.The plant, which has a capacity of 120,000units, will be expanded to 240,000 in a secondstage. Construction on the second stage isexpected to start in 2010.

While Dongfeng can rapidly boostproduction of its own brand of cars in thecoming years, marketing them could bechallenging.

The company is familiar with sellingcommercial vehicles — a pitch that largelydepends on business-to-businessrelationships, not mass-marketing skills.

Dongfeng also needs a marketing plan tointegrate the new brand into its lineup.

Several companies affiliated with Dongfenghave been producing small vans, pickupsand minivans that carry Dongfeng’s badge.

For example, Dongfeng Liuzhou Motor Co.,of which Dongfeng and Nissan together own75 percent, produces the Dongfeng-badgedFuture seven-seat and Joyear five-seat vans.

Zhengzhou Nissan Automobile Co., inwhich Dongfeng has a 51 percent stake, isproducing some Dongfeng-badged SUVs,pickups and seven-seat vans based onNissan platforms.

Dongfeng Yuan Vehicle Co. in Hubeiprovince is producing Dongfeng-badgedminivans, while Dongfeng Rongcheng AutoCo. in Shandong province plans to launch aDongfeng-badged sporty sedan.

— Kevin Huang

LIFAN 620

Dongfeng Motor Corp.No. 1 Dongfeng Ave., Wuhan Economic-Technological Development AreaWuhan City, Hubei Province 430056, P.R. China(86) 27-8428-5000, www.dfmc.com.cnTop executive: Xu Ping, general manager

Models produced: Dongfeng FutureJoyear

Ownership:Dongfeng Motor Co. 75%Liuzhou Industrial Holding Co. 25%

Global JVsDongfeng Honda Automobile (Wuhan) Co. – Wuhan, Hubei Province – HondaCivic, CR-V, (Page 11)Dongfeng Yueda Kia Automobile Co. – Yancheng City, Jiangsu Province – Kia

Carnival, Cerato, Cerato H/B, Optima, Rio, DYK Sportage (Page 12)Dongfeng Motor Co./Dongfeng Nissan Passenger Vehicle Co. – Guangzhou,

Guangdong Province – Nissan Bluebird Sylphy, Geniss, Livina, TeanaTiida, X-Trail (Page 14)

Dongfeng Peugeot Citroen Automobile Co. – Wuhan, Hubei Province –Citroen C2, C-Elysee, C-Quatre, C-Triomphe, New Xsara, PicassoPeugeot 206, 207, 307 (Page 15)

Zhengzhou Nissan Automobile Co. – Zhengzhou, Henan Province – Nissan MPV, NT400 Cabster, Paladin, Pickup, Rich, SUV (Page 14)

Domestic JV: Dongfeng Liuzhou Motor Co.No. 286 Pingshan Ave., Liuzhou CityGuangxi Province 545005, P.R. China(86) 772-3281-218, www.fxauto.com.cnTop executive: Cheng Daoran, general manager

D O M E S T I C A U T O M A K E R S24

2008 2007


Models produced:Lifan 320, 520, 520i, 620

Ownership:Chongqing Lifan

Industry Co. 86%American Insurance

Group 14%

Chongqing Lifan Automobile Co.No. 60 Zhangjiawan, Shangqiao, Shapingba DistrictChongqing City, 400037, P.R. China(86) 236-6166-000, www.auto.lifan.comTop executive: Yin Mingshan, chairman

2008 2007





26

Guangzhou Automobile Industry GroupFloor 19-21, 23, Chengyue Mansion, No. 448 Middle of Dongfeng RoadGuangzhou City, Guangdong Province 510030, P.R. China(86) 20-8315-0411, www.gaig.com.cnTop executive: Zhang Fangyou, president

Global JVs:Guangzhou Honda Automobile Co. – Guangzhou, Guangdong Province – Honda Accord, Fit, New City, Odyssey (Page 11)Honda Automobile (China) Co. – Guangzhou, Guangdong Province – Honda Jazz (Page 11)Guangqi Toyota Motor Co. – Guangzhou, Guangdong Province – Toyota Camry, Yaris (Page 16)

Guangzhou Automobile Industry Groupwill expand its dealer network in 2009 andfinish testing the first car of its own brand, amid-sized sedan due early in 2010.

At the 2008 Guangzhou auto show inNovember, the company unveiled a conceptsedan, the VIP-Lounge. Guangzhou says theconcept is close to the 2010 productionmodel.

Guangzhou is a major state-ownedautomaker. But it has fallen behind otherstate-owned giants, such as ShanghaiAutomotive Industry Corp., in the race todevelop brands. Guangzhou does have twojoint ventures, with Honda Motor Co. andToyota Motor Corp.

Late in 2007, Guangzhou joined the rushby Chinese automakers to develop theirown brands. The automaker plans to spendabout $916 million by 2010 on that project.

The company is building a car plant and

an engine plant in Guangzhou with annualcapacity of 100,000 units per year. Con-struction is expected to be finished in May.

Although Guangzhou’s two assembly

partners are Japanese, it seeks technologiesfrom European companies for its own brand.For example, Fiat Powertrain Technologies ishelping Guangzhou develop engines.

The company’s joint ventures with Hondaand Toyota grew less than the overallmarket’s 6.9 percent increase in 2008.

Guangzhou Honda Automobile Co. sold305,998 cars in China last year. Althoughsales rose 3.6 percent from 2007, the figurewas well below the company’s target of340,000 units.

Guangzhou Toyota Motor Co. sold 172,004cars last year, up 1.0 percent. But it, too,failed to meet its sales target of 210,000 units.

According to reports in the Chinese media,Guangzhou may set up a joint venture withFiat Group in 2009 to produce Fiatpassenger vehicles. Both companies havedeclined to confirm the reports.

— Kevin Huang

In 2009, Great Wall Motor Co. seeksa comeback in the SUV market. Italso wants to grab more market sharein cars. The company plans toachieve both with more fuel-efficientvehicles.

Small engines are in demandbecause the Chinese governmenthalved the vehicle purchase tax to 5percent on vehicles with engines of1.6 liters or smaller.

Great Wall says it plans to launch 13new or redesigned vehicles in 2009,nine of which will have enginessmaller than 1.6 liters. The first of thenew vehicles, the Coolbear, went onsale in March.

In 2008, Great Wall’s Hover SUV lostfirst place as China’s top-selling SUV toHonda’s CR-V. The Hover had been ontop since 2003.

The automaker plans to launch fiveSUVs, and three will be offered with1.3- and 1.5-liter engines.

Clean diesel is also a strategy of GreatWall. This year the company will offer2.0-, 2.4- and 2.5-liter clean-diesel engines in the Hover.

In 2008 the automaker launched its firsttwo small sedans, the Gwperi and Florid.

The company sold about 125,000 vehicles,including exports, in 2008, up 10 percent

from 2007. Exports increased 15 percent toabout 55,000 units. Great Wall targets salesof 200,000 vehicles in 2009, including80,000 cars.

Great Wall says it will expand its networkof dealers in the second- and third-tier

domestic cities in 2009. The company predicts the number of its

dealerships in China will increase to 550 thisyear, from about 450 at the beginning of theyear.

— Lan Lana

Great Wall Motor Co.No. 2266 South of Chaoyang Road, Baoding CityHebei Province 071000, P.R. China(86) 312-2197-855, www.gwm.com.cnTop executive: Wei Jianjun, chairman

GREAT WALL FLORID

GUANGZHOU VIP-LOUNGE CONCEPT

2008 2007Sales, locally produced

passenger vehicles 73,030 64,732

Models produced:Coolbear, Cowry, Florid, GWPeri, Hover, Safe, Sing

Ownership:Baoding Ruifeng Corp.

Planning Co. 24%Baoding Innovation Great Wall

Asset Management Co Ltd. 38%Public shares 38%




27

Shanghai Automotive Industry Corp.No. 489 Weihai RoadShanghai 200041, P.R. China(86) 21-2201-1688, www.saicgroup.comTop executive: Hu Maoyuan, president

Global JVs:Shanghai General Motors Corp. – Shanghai – Buick Excelle, Excelle HRV, LaCrosse,Regal, Park Avenue; Cadillac SLS (Page 10)Shanghai GM Dongyue Motors Co. – Yantai, Shandong Province – Chevrolet Aveo

Cruze, Epica, Lova (Page 10)SAIC-GM-Wuling Automobile Co. – Liuzhou, Guangxi Province – Chevrolet Spark;

Wuling Rongguang, Hongtu, Sunshine, Xingwang, Single & Double Pickup(Page 10)

Shanghai GM (Shenyang) Norsom Motors Co. – Shenyang, Liaoning Province –Buick GL8 (Page 10)

Shanghai Volkswagen Automotive Co. – Shanghai – VW CrossPolo, LavidaPassat Lingyu, Polo, Santana, Santana Vista, Touran;Skoda Fabia, Octavia (Page 17)

2008 2007


Ownership:Shanghai government 100%

Models produced: Roewe 550, 750 Ownership:Shanghai Automotive

Industry Corp. 84%Public shares 16%

SAIC Motor Co.Building 3, 615 Ningqiao Road, Jinqiao, Pu Dong DistrictShanghai 201206, P.R. China(86) 21-5899-9522, www.roewe.com.cnTop executive: Hu Maoyuan, president

Shenyang Brilliance Jinbei Automotive Co.No. 39, Dongwang Street, Dadong District,Shenyang City, Liaoning Province 110044, P.R. China(86) 24-3166-6666, jinbei.chinaepu.comTop executive: Qi Yumin, president


passenger vehicles 103,737 126,571Models produced: Grandeur, Splendor, Splendor FRV, Splendor Wagon, Brilliance Coupe

Ownership:Brilliance Automobile Holdings 51%JinBei Automobile Co. 39%Dalian Huaxia North Investment Co. 10%

Shenyang Brilliance Jinbei Automotive Co.,BMW AG’s partner in China, is counting ona new compact car platform to reversedeclining sales.

Brilliance makes cars under its Brilliancebrand and produces vans, small buses andlight trucks under the Jinbei brand. Thecompany sold 285,119 units in 2008.

Brilliance was a pioneer among domesticautomakers in developing its own brand ofcars. But today it remains a small playerbecause of a lack of funds and frequentreshufflings of top executives.

Sales of Brilliance cars in the domesticmarket dropped 18.0 percent to 103,737 in2008, according to Jato Dynamics.

Sales of the mid-sized Splendor dropped11.2 percent in 2008, and the Grandeur wasoff 46.8 percent. Italy’s Pininfarina S.p.A.styled the cars, while Porsche AG helpedengineer them.

Brilliance launched the FRV hatchback,based on a new compact car platform, in2008. The platform, benchmarked againstthe Volkswagen Bora, was designed byBrilliance’s r&d team.

A three-box sedan version of the FRV willgo on sale in 2009, and a crossover based onthe same platform will be added later, saysBrilliance.

Other cars from the same platform will beassembled in a plant under construction.

Production is scheduled to start in 2010. Theplant’s annual capacity will be 150,000 units.

In 2006, Brilliance’s plans to enter Europewere delayed when the Grandeur fared poorlyin a crash test. Brilliance resumed exports ofthe Splendor to Europe in 2007. The companydoesn’t release its European sales.

The company originally planned to startselling cars in the United States in 2009. ButHe Guohua, vice chairman of the company,told Automotive News that Brilliance nowhas no timeline to start exports.

Brilliance’s joint venture with the BMWGroup produces the BMW 3- and 5-seriessedans in Shenyang.

— Lan Lan

Shanghai Automotive Industry Corp. is themost global minded of China’s domesticautomakers. But so far its record withinternational projects is mixed.

On the downside, SAIC’s 51 percentinterest in Korea’s Ssangyong Motor Co. hasbeen a huge headache. In January,Ssangyong filed for bankruptcy protectionfrom creditors in Korea, and SAIC lostcontrol of the company.

On the other hand, SAIC bought the Rover75 platform and shipped the tooling toChina in 2005. It also recruited many formerMG Rover engineers to staff its r&d center inEngland, which helped it develop cars for itsown brand, Roewe. The brand has two cars,the 750 mid-sized sedan and the 550compact sedan, with more on the way.

After acquiring Nanjing Automobile Corp.in late 2007, SAIC took over the MG brandthat Nanjing Auto bought from MG Rover.

SAIC, established in the 1950s, has deeproots as a state-owned company. But it wasquick to see the potential of partnering with

global automakers and developing its ownauto brand. It set up a 50-50 joint venturewith Volkswagen AG in 1983 and withGeneral Motors in 1997.

In 2002, SAIC and GM established asuccessful joint venture with Liuzhou WulingMotor Co. to make minivans under theWuling brand and the Chevrolet Spark smallcar. Wuling now is China’s top-sellingdomestic brand.

In 2006, SAIC started making cars of its

own brand, Roewe. It now has threepassenger-vehicle plants with annualcapacity of 400,000 units.

SAIC touts the British heritage of its Roeweand MG brand cars. But sales of the twobrands have been modest. In 2008, SAIConly sold 26,007 Roewes and 9,201 MGs.

SAIC now is consolidating operations of itsthree car plants so MG and Roewe modelscan share platforms and be assembled ineach plant.

Meanwhile, SAIC is racing other domesticautomakers such as BYD Auto Co. andChery Automobile Co. to developalternative-energy vehicles. In late 2008, itset up a subsidiary in Shanghai to develophybrid and electric cars.

Before the end of 2010, SAIC expects tostart mass producing a mild hybrid poweredby lithium ion batteries. The car will be arefitted Roewe 750.

It also plans to launch an electric car inabout 2012.

— Yang Jian

ROEWE 550




28


passenger vehicles 221,151 220,832

Models produced:Free Cruise, Jinying, King Kong, Meirenbao,Merrie, Panda, Ulio, VisionOwnership:Li Shufu 91%Others 9%

Zhejiang Geely Automobile GroupNo. 1760 Jiangling Road, Binjiang District, Hangzhou CityZhejiang Province 310051, P.R. China(86) 571-8776-6666, www.geely.comTop executive: Li Shufu, chairman

2008 2007


Models produced:Wuling Light

Ownership:State owned 100%

Liuzhou Wuling Motors Co.No. 18 Hexi Road, LiuzhouGuangxi Province 545007, P.R. China(86) 772-3750-272, www.wuling.com.cnTop executive: He Shiji, chairman

Liuzhou Wuling Motors Co. is a little-known automaker, but it owns the top-selling domestic brand in China.

Wuling has thrived by selling a versatilesmall van useful for small businesses andfamilies. In 2008, Wuling posted sales of545,239, up 17.5 percent from 2007.

General Motors has been Wuling’s keypartner. Starting in 2002, GM and anotherpartner, Shanghai Automotive Industry Corp.,upgraded Wuling’s vans with better engines,materials and manufacturing quality.

In 2002, Liuzhou Wuling, a state-ownedcompany in the southwestern Chinaprovince of Guangxi, transferred nearly allits automaking operations to the jointventure SAIC-GM-Wuling Automobile Co.Liuzhou Wuling itself now produces onlyparts, engines and a small number ofspecial-purpose vans.

GM owns 34 percent of SAIC-GM-Wulingbut has said it wants to increase the stake.The U.S. automaker also wants to use the

joint venture to produce inexpensive smallcars for global markets.

GM started a trial project in mid-2008,rebadging the Wuling Hongtu van as aChevrolet and exporting the vehicle to Peru.The Hongtu was designed by GM’sengineering team in China at Pan AsiaTechnical Automotive Center in Shanghai.

SAIC-GM-Wuling operates two assemblyplants and one engine plant in its

headquarters in the western China city ofLiuzhou. It also runs an assembly plant andis building an engine plant in thenortheastern coastal city of Qingdao.

Sales of small vans are expected to grow incoming years because the Chinesegovernment is offering subsidies to farmersto buy them. In 2006, Wuling overtookChangan as the top small-van maker inChina.

Meanwhile, SAIC-GM-Wuling is looking toproduce bigger and more profitable familycars. The company is expected to getsupport from Pan Asia TechnicalAutomotive Center to build a $7,300 to$8,800 compact sedan based on the BuickExcelle platform.

Engineers from the company say SAIC-GM-Wuling also is developing a bigger vanpriced at about $10,000 in the next two tothree years. The automaker’s best-sellingSunshine model sells for about $5,100.

— Kevin Huang

Zhejiang Geely Automobile Group plans tolaunch two brands this year, a risky strategyfor a small automaker.

In 2008, Geely launched a brand calledEagle with the Panda small car plus fournew models companywide.

Duan Chengwu of Global Insight saysGeely’s multiple brands are confusing. “As arelatively new car company without a globalfootprint yet, Geely should insteadconcentrate on building a single Geelybrand,” says Duan.

But John Zeng, also of Global Insight, saysthe Panda is a high-quality car. “Geely willdo much better than Chery,” Zeng says.

Chery Automobile Co. also has begun amultibrand strategy.

Geely’s electric vehicle, the LE-E, is ready forvolume production, says the automaker. “Weestimate putting this vehicle into productionnext year — though we still have not yet fullydevised the strategy,” says spokesperson

Zhang Xiao Dong.Last year’s market slowdown caused

Chairman Li Shufu to delay projects. Forinstance, a plan to open a plant in Mexicowas shelved. In November, Li said exports hadfallen as much as 60 percent in some markets.

Other projects likely to take a back seat

include production of the TX4 London Taxi. In2007, Geely bought 23 percent of taxi makerManganese Bronze Holdings PLC and formeda joint venture. Production was to begin inDecember but was pushed back to April.

Meanwhile, Li is trying to build a networkof support across China. By opening plantsin several provinces, he is gaining backingfrom local governments, says Duan. Inreturn for his investments, the governmentswill encourage using Geely cars as taxis.

Sales of the six Geely brand models in Chinatotaled 183,025 in 2008, down 0.6 percentfrom 2007. Geely’s Maple brand sold 36,357units in 2008, down 0.8 percent from 2007.The Panda, badged with the new Eagle brand,sold 1,769 units after its November launch.

“Total sales of 230,000 units in 2009 isachievable,” Li said in an interview inNovember. “But 280,000 would probably betoo optimistic.”

— Namrita Chow

GEELY PANDA

WULING HONGTU

JV: Shanghai Maple Automobile Co.Fengjing Industrial Park, Jinshan District,Shanghai 201501, P.R. China(86) 21-5136-9990, www.c-sma.comTop executive: Yu Wei, general manager

Models produced: Haiyu, Haixun, Haishang, Haifeng,Haiyue

Ownership:Zhejiang Geely Automobile

Holdings Group 91%Zhejiang Huapu Investment Co. 9%

Un




29

Hebei Zhongxing Automobile Co.No. 860, Jianguo Road, Baoding CityHebei Province 071000, P.R. China(86) 312-2190-705, www.zxauto.com.cnTop executive: Xiao Wei, president


2008 2007

6,126 6,971

Models produced:Admiral, Grand Tiger,Landmark, Landmark V3

Ownership:Hebei Tianye Automobile

Group Co. 53%Baoding Tianwei

Group Co. 14%Taiwan Unite

Leaders Co. 33%


2008 2007

58,237 48,114

Models produced:Binyue, Refine MPV, Rein SUV,Tongyue

Ownership:Anhui Jianghuai

Auto Group 35%Public shares 65%

Anhui Jianghuai Automobile Co.No. 176 Dongliu Road, Hefei CityAnhui Province 230022, P.R. China(86) 551-2296-666, www.jac.com.cnTop executive: Zuo Yanan, president


2008 2007

96,099 130,988

Models produced: MazdaFamilia, Freema, Haima3Happin, Haydo

Ownership:Haima Holding Group 50%China FAW Group Corp. 49%Hainan Provincial

Government 1%

FAW Haima Automobile Co.No. 12-8 Jinpan Road, Jinpan IndustryDevelopment Area, Haikou CityHainan Province 570216, P.R. China(86) 898-6682-2672, www.haima.comTop executive: Jing Zhu, chairman

Harbin Hafei Automobile Industry Group Co.No. 1 Yantai Road, Pingfang DistrictHarbin City, Heilongjiang Province 150060, P.R. China(86) 451-8650-6688, www.hafeiauto.com.cnTop executive: Lian Gang, president


2008 2007

148,673 167,165

Models produced:Hafei Lubao, Minyi, Minyi II,Ruiyi, Saibao III, Saibao V,Saima, Zhongyi

Ownership:Harbin Aviation Industry

Group Co. 74%Others 26%

Hunan Jiang Nan Automobile Co.Nanzhushan, Xiangtan CountyHunan Province 411207, P.R. China(86) 732-2518-018, www.jncar.netTop executive: Li Xubing, president


2008 2007

13,099 5,444

Models produced:Alto, Chuanqi, Fengguang,Spirit

Ownership:Zotye Holding Group 70%Jiangnan Automobile

Manufacture Co. 30%

Jiangxi Changhe Automobile Co.No. 208 Xingchang East Road, Jingdezhen CityJiangxi Province 333002, P.R. China(86) 798-8462-778, www.changheauto.comTop executive: Li Yao, president


2008 2007

8,294 7,295

Models produced:Big Dipper, Freedom, Ideal II,Landy, Liana

Ownership:China Aviation Technology

Industry Co. 63%Others 37%


2009 guide to china's auto market - 04-27 - automotive news

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