SAIC Motor, FAW Group, and Dongfeng Motor Corp. will be capable of producing 7.8 million a year at the end of 2010 In their future plans, SAIC Motor and FAW Group will have a production capacity of 3.7 million while Dongfeng Motor Corp. will have 3.9 million
SAIC Motor will increase its production capacity to 3 million a year at the end of 2010...
FAW Group will increase its production capacity to 2.3 million at the end of 2010, targeting to...
Dongfeng Motor Corp. will have a production capacity of 2.5 million a year at the end of 2010...
Collaborative report with IHS Global Insight
Mid-term Production Forecast
In January-October 2009, production of vehicles in China amounted to 10.87 million. It is expected to reach 13 million-mark in full-year 2009 and 15 million-mark in 2010.
In January-October 2009, SAIC Motor (SAIC Motor Corporation Ltd.) produced 2,184,000, FAW Group (China FAW Group Corp.) 1,531,000, and Dongfeng Motor Corporation 1,480,000. The three companies' combined production volume is 5,195,000, which accounted for 47.8% of the total production volume in China.
The following outlines the production capacity plans that the three companies have announced so far. SAIC Motor's production capacity has already amounted to 2.5 million-mark a year and is planned to increase to 3 million-mark at the end of 2010. Then, the company intends to further increase the capacity to 3.7 million-mark.
FAW Group's production capacity has already reached 1.9 million-mark per year except for heavy-/medium-duty commercial vehicles. The company will boost the capacity to 2.3 million-mark at the end of 2010. Then, it intends to raise the capacity to 3.7 million-mark by enhancing own-brand mini vehicle business.
Dongfeng Motor Corp.'s production capacity has already amounted to 1.8 million-mark a year except for heavy-/medium-duty commercial vehicles. Its capacity will increase to 2.5 million-mark at the end of 2010. Then, as will FAW Group, it will expand its own-brand mini vehicle business, intending to boost the capacity to 3.9 million-mark.
|■Production of passenger cars and production capacity by SAIC Motor, FAW Group, and Dongfeng Motor Corp.|
|Figures with "*" in front includes the production capacity for light-duty commercial vehicles.|
|Production volume of
passenger cars (in units)
|Annual production capacity for
passenger cars (in 1,000 units)
|2010 plan||Future plan|
|Lingang (Shanghai) plant||28,830||21,219||69,337||120||150||300|
|Yizheng (Jiangsu) plant||50||50||Production is
|Nanjing (Jiangsu) plant||9,447||7,291||11,824||n.a.||150||200|
|Shanghai VW||Shanghai three plants||494,178||429,657||568,335||600||800||960|
|Nanjing branch plant||60||200||300|
|Former Nanjing Fiat Automobile||369||369||0||To be reorganized as
Shanghai VW Nanjing Branch
|Shanghai GM||Jinqiao (Shanghai) plant||240,885||199,584||319,328||320||320||450|
|Norsom (Shenyang) plant||35,174||31,185||90,282||200||200||200|
|Dongyue (Yantai) plant||163,054||144,714||124,110||240||240||300|
|Liuzhou western plant||587,774||498,279||827,113||*400||*400||*400|
|Liuzhou eastern plant||*200||*200||*300|
|Qingdao branch plant||*300||*300||*300|
|Former Nanjing Automobile Group
Wuxi Soyat Branch
|32||32||0||Rebuilding of the plant is
currently under consideration
|SAIC Motor Corp. total||1,559,743||1,332,330||2,010,329||*2,490||*3,010||*3,710|
|FAW Car||Former (Hongqi) plant||127||111||271||10||10||10|
|The first new plant||113,220||94,237||149,231||200||200||200|
|The second new plant||Operations of the Hongqi/Besturn brand
plant will partially begin in 2010
|Tianjin FAW Huali Automobile||Production will be resumed by 2011||150|
|FAW Jilin Automobile||22,943||20,652||40,411||*100||*100||*300|
|Tianjin Tianqi Group Meiya Auto||1,073||865||873||*40||*40||*40|
|The first line(Tianjin)||91,781||82,200||73,106||120||120||120|
|The second line (Tianjin)||95,763||83,894||58,610||100||150||150|
|The third line (Tianjin)||178,112||151,728||113,308||200||200||200|
|Chengdu existing plant||13,741||12,581||8,557||10||To be relocated
to a new plant
|Chengdu new plant||Construction began in 2008||30||50|
|Changchun Fengyue plant||6,055||5,261||1,458||10||10||10|
|Changchun new plant||Construction will be resumed in 2010||100||200|
|FAW-VW||Changchun Audi plant||Operations
start in 2009
|The first (Changchun) plant||480,822||420,084||150||150||150|
|The second (Changchun) plant||330||330||330|
|Chengdu existing plant||20||30||50|
|Chengdu new plant||Construction begins in 2009||150||350|
|(Guangdong prov. plant)||Under consideration as a compact-car plant||200|
|Yunnan existing plant||1,592||1,100||887||*150||*150||*150|
|Yunnan new plant||Details for progress are unknown||*200|
|Harbin plant||Produces minivans
and light-duty trucks
|FAW Group total||1,177,598||1,020,483||1,154,990||*1,920||*2,270||*3,660|
|Dongfeng Liuzhou Motor||19,362||17,258||19,069||50||50||60|
|Shiyan existing plant||*85||*85||*100|
|Shiyan new plant||Construction begins in 2009||*100||*100|
|Wuhan plant||To be acquired from former
Wuhan Zhongyu Automobile
|Dongfeng Automobile||Planning to enter the mini vehicle market||*20||*260|
|The first (Guangzhou) line||292,823||233,180||327,752||460||460||360|
|The second (Guangzhou) line||Operations will begin in 2012||240|
|Hubei Xiangfan plant||61,284||50,137||82,692||100||100||100|
Passenger Car project
|A joint venture plan is said to be have been resumed in 2009|
|The first plant||15,359||12,360||12,572||*86||*86||*86|
|The second plant||Operations will begin in spring of 2010||*120||*200|
|Dongfeng Yulon Motor
(Hangzhou Joint Venture)
|Construction began in 2008.
Currently Awaiting approval for production.
|Wuhan existing plant||165,295||136,045||166,230||200||240||240|
|Wuhan new plant||Operations are expected
to start partially in 2011
|The first (Wuhan) plant||172,720||156,761||201,283||300||300||300|
|The second (Wuhan) plant||Operations begin at the end of 2009||150||300|
|The first (Yancheng) plant||139,067||119,115||181,543||130||130||130|
|The second (Yancheng) plant||130||200||300|
|Dongfeng Motor Corp. total||940,165||784,565||1,115,463||*1,801||*2,521||*3,886|
|The three Groups total||3,677,506||3,137,378||4,280,782||*6,211||*7,801||*11,256|
■SAIC Motor will increase its production capacity to 3 million a year at the end of 2010, targeting to sell 4 million in 2014
In November 2009, SAIC Motor announced that it has set the 2014 production capacity target for 4 million (It expects to sell 2.65 million in 2009). Among them, it targets to sell 500,000 passenger cars under its own Roewe/MG brand by 2015.
The company's production capacity has already amounted to 2.5 million and will expand to 3 million at the end of 2010. Then, the company intends to boost the capacity further to 3.7 million.
■SAIC Motor Passenger Vehicle will build up a production capacity for 300,000 own-brand passenger cars a year in 2010
|SAIC Motor Passenger Vehicle (SAIC Motor Corp. Ltd. Passenger Vehicle Co.) considers its Lingang (Shanghai) plant as a general plant for passenger cars under its own Roewe and MG brands and for engines and its Nanjing (Jiangsu) plant as a compact car plant for its own-brand A-class passenger cars and for compact engines.|
|The company plans to launch gradually 19 new models during the five years to 2013. It will boost the combined production capacity of the two plants from the current 170,000 to 350,000 a year by the end of 2010, then further to 500,000 (It plans to transfer the production at its Yizheng (Jiangsu) plant (Jiangsu prov.), core plant, to its Lingang (Shanghai) plant).|
|The Lingang (Shanghai) plant, which is currently under construction in the suburbs of Shanghai, started operations in September 2008 and began production of Roewe 550 3box. It has a production capacity for 120,000 a year, which is planned to be boosted to 150,000 by the end of 2010, when the first-stage construction will be completed. The company plans to further increase the capacity to 300,000 in the second-stage construction (The production capacity for engines is 400,000 a year).|
|The company plans to transfer production of Roewe 750 3box from the Yizheng (Jiangsu) plant in Jiangsu prov. (which is capable of producing 50,000 a year) to the Lingang (Shanghai) plant. It also plans to add production of MG brand vehicles that share the same platform with Roewe 550 and alternative energy vehicles including HEVs/EVs.|
|The Nanjing (Jiangsu) plant (former plant of Nanjing MG Automobile) plans to complete the second-stage construction at the end of 2009 (which began in October 2008. The investment is worth RMB2.6 billion). Its production capacity will be boosted to 150,000 a year. In addition, the company plans to increase the capacity further to 200,000 a year (The production capacity for engines is 250,000 a year). The immediate production models are four models with 1.3-1.6L displacements including MG and Roewe brand models that share the same platform and A-class world car AP11.|
|(Note)||SAIC Motor is said to be considering rebuilding Nanjing Automobile Group's former Wuxi passenger car plant (Nanjing Automobile Group Wuxi Soyat), which it made into its subsidiary, as a plant that would produce Istana, which would be transferred from the Yizheng small bus plant, or that would produce Iveco's light-duty commercial vehicles.|
■Shanghai VW will build up a production capacity of 1 million a year in 2010 and then will increase further to 1.3 million
|Shanghai VW (Shanghai Volkswagen Automotive Co., Ltd.) plans to increase the production capacity of its three plants in Shanghai to more than 800,000 a year by 2010 and further to 960,000. A combined total with the Nanjing branch plant will be approximately 1 million by the end of 2010 and then 1.3 million. VW (including a tie-up with FAW Group) plans to invest 4 billion Euros in the expansion of its annual production capacity and the launch of new models in China by 2011 (announced in September 2009).|
|Shanghai VW will increase the production capacity of its Nanjing branch plant (non- independent corporation), which started operations in April 2008, from the current 60,000 to 200,000 by 2010, and further to 300,000 by 2012 (announced in August 2009). The Nanjing branch plant is the former Nanjing Fiat Automobile. Its current production model is Santana Vista, production of which was transferred from the Shanghai main plant.|
■Shanghai GM and SAIC-GM-Wuling Automobile will increase their combined production capacity to 1.76 million a year by 2011
|SAIC Motor and GM will boost the total production capacity of Shanghai GM (Shanghai General Motors Co., Ltd.) group and SAIC-GM-Wuling Automobile (SAIC-GM-Wuling Automobile Co., Ltd.) from the current 1.5 million a year to 1.76 million by the end of 2011. (Details of the progress are unknown regarding the plan to increase the production capacity of the Jinqiao (Shanghai city) main plant to 450,000 and that of the Yantai (Shandong prov.) plant to 300,000 in 2011 or later.)|
|(Note) 1.||In December 2009, SAIC Motor announced that it would acquire a 1% stake in Shanghai GM, which it equally owned with GM, for more than USD84.5 million. At the same time, it also unveiled that it would establish with GM an equally-owned investment company, SAIC General Motors Investment Limited, in Hong Kong.|
|2.||The new company plans to cultivate the emerging markets in Asia. First, it is said to be considering producing and marketing compact cars of Shangahi GM and SAIC-GM-Wuling Automobile in India by utilizing GM's business in India.|
|In December 2008, Shanghai GM started operations of the new plant of Shanghai GM Norsom (Shanghai GM (Shenyang) Norsom Motors Co., Ltd.), thereby boosting the group's production capacity to 760,000 a year. The 760,000 are broken down to 200,000 by Shanghai GM Norsom, 320,000 by Shanghai GM's Jinqiao main plant, and 240,000 by the Yantai (Shandong prov.) plant - Shanghai GM Dongyue (Shanghai GM Dongyue Motors Co., Ltd.).|
|Shanghai GM Norsom's Shenyang new plant produces Buick Cruze. It is capable of producing 150,000 a year. GM considers the plant as its global compact passenger car plant. The total investment in the new plant is worth RMB2.67 billion (Construction began at the end of 2005). Along with its existing plant, Shanghai GM Norsom has a combined production capacity of 200,000 a year (2 shifts).|
|SAIC-GM-Wuling Automobile will boost the production capacity of its Liuzhou eastern plant (Guangxi Zhuang Autonomous Region) from 200,000 to 300,000 a year by 2011 (Along with the expansion of the production capacity of engines by 150,000, construction began in August 2009. The total investment is worth RMB2.1 billion). The combined production capacity of the Liuzhou plant with 400,000 of the western plant will increase to 700,000 a year. SAIC-GM-Wuling Automobile's combined production capacity for mini trucks and minivans with 300,000 of the Qingdao branch plant (Shandong prov.) will total 1 million.|
|(Note)||The Qingdao branch plant bought a light vehicle plant that was under the umbrella of FAW Group in 2005. It added an engine plant to the plant in 2007 and made it a production base in northeastern China, which started production of Wuling Rongguang series in April 2008. Its production capacity was increased from the initial 68,000 a year to 200,000. It is said to be 300,000 at the end of 2009.|
■FAW Group will increase its production capacity to 2.3 million at the end of 2010, targeting to sell 4 million in 2015
FAW Group targets to sell 2 million including commercial vehicles in 2010 (which includes 1 million own-brand vehicles), 3 million in 2012 (which includes 1.6 million own-brands), and more than 4 million in 2015.
The company has already had a production capacity of 1.9 million a year excluding heavy-/medium-duty commercial vehicles. It will increase the capacity to 2.3 million at the end of 2010. Then, it will enhance its own-brand mini vehicle business, intending to boost the capacity further to 3.7 million.
■FAW Group targets to produce 800,000 own-brand passenger cars including mini vehicles a year by 2012
■FAW Car will boost its production capacity for passenger cars to 400,000 a year by 2012
|In October 2009, FAW Car in the FAW Group increased the production capacity of its first passenger car new plant in Changchun, which conducts mixed production of Besturn B70/B50 in its own-brand Besturn series and Mazda 6 (Japanese name: Atenza), by 40,000 to 200,000 a year. The special Hongqi-brand plant (the former eastern plant), which produces models such as HQ3, is capable of producing 10,000 a year.|
|In September 2008, FAW Car started construction of its new second plant, which it considers a special plant for its own-brand vehicles, in the adjacent site of its first new plant. The second plant initially has a production capacity of 100,000 a year and will start operations by 2010. It plans to boost the capacity to 200,000 by 2012.|
|Tianjin FAW Xiali Automobile (Tianjin FAW Xiali Automobile Co., Ltd.) currently has a production capacity of 200,000 a year and targets to produce and sell 350,000 in 2012. In October 2008, the company started upgrading a plant of Tianjin FAW Huali Automobile (Tianjin FAW Huali Automobile Co., Ltd.) in order to build up a production capacity of 350,000 (The total investment is worth approximately RMB1,598 million). It will resume production at Tianjin FAW Huali Automobile by 2011 and will mainly produce own-brand A-class compact passenger cars. Tianjin FAW Xiali Automobile plans to boost its production capacity to 150,000 a year by 2012 (announced in June 2009).|
|(Note) 1.||In April 2008, Tianjin FAW Xiali Automobile made Tianjin FAW Huali Automobile into its wholly-owned subsidiary. Their plants are located adjacently.|
|2.||Tianjin FAW Xiali Automobile had planned to build a plant in Mexico which would be capable of producing 50,000 a year, but announced to postpone the plan in June 2009.|
|In October 2009, FAW Group announced its plan to enhance production and marketing of its own-brand mini vehicles (including minivans and mini trucks) centered on FAW Jilin Automobile (FAW Jilin Automobile Co., Ltd.). FAW Jilin Automobile plans to produce and sell 200,000-250,000 mini vehicles in 2012 (It plans to reach Top 3 mini vehicle manufacturers) and started to expand its plant in Jilin prov. in October 2009 (The current production capacity is 50,000 MPVs a year).|
|(Note) 1.||In 2008, FAW Group set up an R&D division for mini vehicles at its group's development center, FAW Technical Center.|
|2.||In June 2009, FAW Group, FAW Jilin Automobile, and Daihatsu announced that they would switch the brand of compact MPV Senya (Daihatsu Xenia), which FAW Jilin Automobile produces, from Daihatsu to FAW (The companies continue the current technical licensing contract and their cooperation).|
■In its partnership VW, FAW Group will build up a production capacity of 850,000 a year at the end of 2010 and more than 1 million in 2012
|FAW-VW (FAW Volkswagen Automotive Co., Ltd.), which is a joint venture between FAW Group and VW, boosted the combined production capacity of the Changchun plant (3 sites) in Jilin prov. and the Chengdu branch plant (1 site) in Sichuan prov. to 700,000 a year (including 200,000 for Audi brand vehicles). In addition, the company started construction of its Chengdu new plant, which is planned to be capable of producing 350,000 a year in 2012 (It will have a production capacity of 150,000 a year in the first-stage construction at the end of 2010). It is also said to be considering building a new compact car plant that is capable of producing more than 200,000 a year in South China area.|
|In May 2009, FAW Group announced that it had started construction of a new plant of FAW-VW Chengdu Branch (non-independent corporation). The new plant plans to have a production capacity of 150,000 at the end of 2010 (The total investment in the first-stage construction is worth RMB5 billion) and of 350,000 in 2012. The predecessor of Chengdu Branch is the former Chengdu FAW Automobile Co., Ltd., which FAW-VW bought in March 2009. The former Chengdu FAW Automobile produced FAW-VW's Jetta by commissioning for the west China area including Sichuan prov. starting in July 2007.|
|In September 2009, FAW-VW completed the construction of a new assembly plant in Changchun for Audi brand vehicles (The construction began in June 2008. The total investment is worth approximately RMB1 billion). The company transferred production of Audi brand vehicles completely from the existing Changchun plant and started production. With the start of operations of the new plant, FAW-VW's production capacity of Audi brand vehicles increased from 100,000 to 200,000 a year. The new plant is capable of mixed production of four models. For the time being, it produces the new A4L and the Q5 (SUV), which will be released in the near future, planning to add their derivative models.|
|(Note)||In June 2008, Audi announced its business strategy in China, in which it would increase the number of dealers to more than 210 by 2012 and would target to sell 200,000 in 2015.|
|It is said that FAW-VW is currently considering building a new plant that will produce more than 200,000 A0-class compact passenger cars centered on SEAT models in Zhujiang Delta region in South China area. Locations such as Shunde, Dongguan, and Nanhai (Foshan city) in Guangdong prov. are said to be likely candidates. It is also said that a tie-up with Foday Automobile in Nanhai city is likely.|
■In its partnership with Toyota, FAW Group will build up a production capacity of 470,000 a year in Tianjin city by 2011 and of 130,000 in Chengdu city and Changchun city
|FAW Group will boost its production capacity in a joint venture with Toyota from 440,000 to 610,000 by 2011. In 2010, the company will introduce new Crown (which was lined off in December 2009) in Tianjin FAW Toyota Motor and new Prius in Sichuan FAW Toyota Motor.|
|Tianjin FAW Toyota Motor (Tianjin FAW Toyota Motor Co., Ltd.), a joint venture with Toyota, will boost its production capacity of the second line (Tianjin) from 100,000 a year to 150,000 by the end of 2009 (The expansion work began in May 2008). Combined with 120,000 of the first line (Tianjin) and 200,000 of the third line (Tianjin), Tianjin FAW Toyota Motor's production capacity will increase to 470,000 a year.|
|Sichuan FAW Toyota Motor (Sichuan FAW Toyota Motor Co., Ltd.), a joint venture with Toyota, will transfer its production business from Chengdu city to its new plant by the first half of 2010. The new plant is capable of producing 30,000 a year. The existing plant is capable of producing 10,000 SUVs (Land Cruiser Prado) and 3,000 chassis for buses (Coaster). (It is reported that the new plant plans to boost the production capacity to 50,000 a year in the future)|
|The construction of Changchun new plant began in October 2008, but was currently suspended. It is expected to be resumed in 2010. The new plant will be capable of producing 100,000 a year (There is also an existing plant of Changchun Fengyue Co., which is capable of producing 10,000 a year) and is planned to start operations by March 2011 (Operations may begin as early as at the end of 2010). The company announced New Corolla (Kaluola) as a production model at the announcement when the construction began. Yet, RAV4, an SUV that is enjoying strong sales, is also said to be a likely candidate. (It is also reported that the new plant plans to boost its production capacity to 200,000 a year in the future)|
■FAW Group ties up with GM on the light-duty commercial vehicle business, planning to build up a production capacity of 250,000 in 2010
|In August 2009, FAW Group and GM jointly established FAW-GM Light Duty Commercial Vehicle (FAW-GM Light Duty Commercial Vehicle Co., Ltd.), a 50-50 joint venture that produces and sells light-duty commercial vehicles (LCV), in Changchun city, Jilin prov.|
|The new company incorporates the business of the two companies in the FAW Group, FAW Group Harbin Light Duty Truck (FAW Group Harbin Light Duty Truck Co., Ltd.) and FAW-Hongta Yunnan Automobile (FAW-Hongta Yunnan Automobile Co., Ltd.), planning to expand its LCV business globally under the two brands - FAW Group and GM. The new company has not announced a plan to build a new plant. It says that it targets to produce and sell 200,000 in 2010. In 2009, the two companies in the FAW Group announced a plan to construct a new plant.|
|In June 2009, FAW Group Harbin Light Duty Truck started construction of a new plant in Harbin city, to which the company will transfer production from the existing plant. The new plant will be capable of producing 100,000 a year (The existing plant is capable of producing 80,000 a year). The total investment is worth RMB142,300. It is scheduled to start operations in December 2010, planning to boost the production capacity to 200,000 a year in the future.|
|(Note)||FAW Group Harbin Light Duty Truck is the former FAW Group Harbin Light Duty Truck Factory. It was renamed in March 2009.|
|In February 2009, FAW-Hongta Yunnan Automobile announced that it would build a new plant in Yunnan prov., where it currently owns a plant and that, in the first-stage construction, it would build up a production capacity for 200,000 LCVs. The existing Yunnan plant is currently producing minivans (Lucky Messenger), MPVs (Free Wind), mini trucks (Hongta), and light-duty trucks (including Jiefang, Qilin, and Balin). It is capable of producing 150,000 a year.|
■Dongfeng Motor Corp. will have a production capacity of 2.5 million a year at the end of 2010, planning to boost the capacity further to 3.9 million in the future
Under its five year plan from 2008 to 2012, Dongfeng Motor Corp. (Dongfeng Motor Corporation) targets to sell a total of 1.8 million - 1.35 million passenger cars (including 270,000 own-brand cars) and 450,000 own-brand commercial vehicles - in 2010 (announced in December 2007).
The company has already build up a production capacity of 1.8 million a year excluding heavy-/medium-duty commercial vehicles and will boost the capacity to 2.5 million at the end of 2010 (Under its five-year medium-term plan, the company planned to have a total production capacity of 2.15 million a year in 2010 - 1.63 million passenger cars and 520,000 commercial vehicles). Then, as will FAW Group, it will enhance its own-brand mini vehicle business, intending to boost the capacity to 3.9 million.
■Dongfeng Motor Corp. started producing own-brand Fenshen passenger cars, planning to expand its mini vehicle business
■Dongfeng Motor Passenger Vehicle began production of Fenshen brand passenger cars, capable of producing 160,000 a year
|Dongfeng Motor Passenger Vehicle (Dongfeng Motor Corp. Passenger Vehicle Co.) takes charge of the own-brand Fenshen passenger car business. It completed the first-stage construction of its Wuhan new plant in Hubei prov. at the end of 2008 (The construction began in September 2007), starting production of Fenshen S30 3box in June 2009. The new plant has a production capacity of 160,000 a year, which is planned to be increased to 330,000 in the second-stage construction.|
|(Note)||Dongfeng Motor Corp. was founded in August 2008 based on the former Dongfeng Motor Corp. Passenger Vehicle Division as a founding body. In May 2009, it became a wholly-owned subsidiary of Dongfeng Motor Group Co., Ltd., which is Dongfeng Motor Corp.'s asset management company.|
|In June 2009, Dongfeng Yu'an Automobile (Dongfeng Yu'an Automobile Co., Ltd.) started construction of its new mini vehicle plant in Shiyan city, Hubei prov. (The total investment is worth RMB650 million). Operations are scheduled to begin at the end of 2009. The production capacity will be 100,000 a year in 2010. The company is currently expanding the existing Shiyan plant (that is capable of producing 85,000 a year), which produces mini vehicles. The Shiyan plant will have a production capacity of 100,000 a year by 2011.|
|In September 2009, the company bought the Dunkou plant (Wuhan city), which was capable of producing 100,000 a year, from a private auto manufacturer, Wuhan Zhongyu Automobile. It plans to make the plant into a production plant for mini passenger cars with displacement of 1.3L or under, which are priced at RMB30,000 to 100,000. The production capacity will gradually be increased to 200,000.|
|(Note)||Dongfeng Yu'an Automobile is owned 50% by Dongfeng Motor Group Co., Ltd. and Dongfeng Motor Industrial, and 50% by Chongqing Yu'an Chuangxin Science & Technology.|
|Dongfeng Automobile (Dongfeng Automobile Co., Ltd.) is a subsidiary of New Dongfeng Motor (Dongfeng Motor Co., Ltd.: DFL), which is equally-owned by Dongfeng Motor Corp. and Nissan. Dongfeng Automobile produces light-duty commercial vehicles (LCV). In November 2009, it announced its intention to enter the mini vehicle market to produce and sell 200,000 mini vehicles in 2014 (No details of the plan are unveiled).|
■In its tie-up with Nissan, Dongfeng Motor targets to sell 1 million including light-duty commercial vehicles (LCV) in 2010, two years earlier
|New Dongfeng Motor (DFL), which is equally-owned by Dongfeng Motor Corp. and Nissan, targets to sell 1 million in 2010 two years earlier than its initial target of 2012 (announced in December 2009. It includes light-duty commercial vehicles and import cars). In addition, Dongfeng Motor Corp. is planning joint production with Yulon Motor in Hangzhou (The production capacity is 240,000 a year including SUVs and MPVs) and is also negotiating with Renault on joint production in Guangzhou.|
|(Note)||Under its five-year medium-term plan to 2012, Plan 13 (Plan One Cubic), New Dongfeng Motor (DFL) had targeted to sell a combined total of 1 million passenger cars of Dongfeng Nissan Passenger Vehicle and light-duty commercial vehicles (LCV) of Dongfeng Automobile and Zhengzhou Nissan Automobile in 2012 (announced in May 2008).|
|In July 2007, New Dongfeng Motor (DFL) announced that it would gradually increase the production capacity of Dongfeng Nissan Passenger Vehicle's Guangzhou main plant from the current 360,000 to 600,000 (The Xiangfan branch plant is capable of producing 100,000 a year). The company will invest a total of RMB5 billion to add a second production line. Operation of the second production line will begin in 2012, which will mainly produce low-priced strategic models.|
|(Note)||In the autumn of 2009, Dongfeng Nissan Passenger Vehicle introduced three-shift production for 460,000 in order to boost production for the near term at the Guangzhou main plant.|
|In September 2008, Zhengzhou Nissan Automobile (Zhengzhou Nissan Automobile Co., Ltd.) began construction of its second plant in Zhengzhou city. The new plant will have a production capacity of 120,000 a year when the first-stage construction is completed. The investment is worth RMB1 billion. The new plant will start operations by May 2010 and plans to produce Nissan NV200 (Mini Van). Combined with the existing plant, Zhengzhou Nissan Automobile's production capacity will increase to 206,000.|
|(Note) 1.||In March 2009, Zhengzhou Nissan Automobile announced its sales target - 60,000 in 2009, more than 100,000 in 2010, and more than 200,000 in 2012.|
|2.||In November 2009, Zhengzhou Nissan Automobile started marketing of Nissan LCV (NT400 Cabstar. Japanese name: Atlas), which the Xiangfan branch plant of Dongfeng Automobile, its parent company, produces (Monthly sales target is 1,700).|
|In March 2009, Dongfeng Automobile started construction of a new light van plant (Dongfeng Automobile Co., Ltd., Xiangfan Light Vehicle Co.) in Xiangfan, Hubei prov. The company will complete the first-stage construction for a production capacity of 20,000 a year by 2010, planning to increase the capacity to 60,000 in 2014 (The total investment is worth approximately RMB1.75 billion). The new plant is planned to be a special plant for Dongfeng Automobile's strategic light van, A08 (development code) (A08 is a monocoque middle-class/high-end LCV that Dongfeng Motor independently develops based on Nissan model).|
■Dongfeng Motor plans new joint production with Yulon Motor while it is negotiating joint venture with Renault
■Dongfeng Yulon Motor plans to build up a production capacity of 240,000 a year in Hangzhou jointly with Yulon Motor
|In September 2009, Dongfeng Motor Corp. announced that it had submitted to the National Development and Reform Commission a plan in which it would reorganize Dongfeng Hangzhou Motor Co., Ltd., which produces middle-class/high-end buses, and would jointly establish a new company that would manufacture commercial vehicles and passenger cars with Yulon Motor and Zhongyu Holding Group (Dongfeng Hangzhou Motor has a production capacity for 30,000 buses a year)|
|In June 2009, the three companies concluded an agreement on Dongfeng Hangzhou Motor taking a 20% stake in Luxgen (Hangzhou) Automobile (Luxgen (Hangzhou) Automobile Co., Ltd.), an equally-owned joint venture between Yulon Motor and Zhongyu Holding Group. In August 2009, Luxgen (Hangzhou) Automobile was renamed as Dongfeng Yulon Motor (Dongfeng Yulon Motor Co., Ltd.).|
|In December 2008, Luxgen (Hangzhou) Automobile started construction of a new plant in Hangzhou city which produces passenger cars under Yulon Motor's Luxgen brand, but it had not won approval for production from the Chinese government. The three companies reached an agreement to resolve this situation.|
|The new plant is capable of producing 240,000 a year (120,000 when operations start) and of 200,000 engine. Operations will start as early as in October 2010. It plans to produce Luxgen-brand SUVs (2.0L), MPVs, and Cars (2/3box). There is also a plan to build an engine plant and an R&D center attached to the new plant. The total investment is worth RMB4.65 billion (RMB3.4 billion for the first-stage construction).|
|Dongfeng Motor Corp. and Renault are said to have resumed their negotiation on joint production. It includes the reorganization of Sanjiang Renault Automotive (Sanjiang Renault Automotive Co., Ltd.), in which Renault holds a 49% stake. Renault will initially conduct mixed production of Renault models on the production line for Nissan models at Dongfeng Nissan Passenger Vehicle's Guangzhou main plant. Renault is said to intend to build a new plant in Huadu District, Guangzhou city, to expand its joint venture with Dongfeng Motor Corp.|
|(Note) 1.||In June 2008, Renault announced its intention to resume production at Sanjiang Renault Automotive in 2010. The company will make an additional investment of RMB1.5 billion to prepare a production capacity for 40,000 units of Mini Van W72 (development code) and to export the product to emerging markets such as Brazil, India, and Russia.|
|2.||Sanjiang Renault Automotive was established as a joint venture between Renault and Sanjiang Space Estate Industry Group in 1994. Due to slumping business, it halted production in 2002 (It had produced a total of 4,000 including Mini Van Trafic). Its rebuilding plan through a tie-up with China Brilliance Automotive was once sought.|
■Dongfeng Honda Automobile will double its production capacity to 240,000 a year, also planning to build its second plant
|In August 2009, Dongfeng Honda Automobile (Dongfeng Honda Automobile Co., Ltd.), which is equally owned by Dongfeng Motor Corp. and Honda, raised the production capacity of its Wuhan plant (existing plant) from 120,000 a year to 200,000 at the same time when volume-production of high-end midsize sport sedan, Spirior (based on SR-9 concept), began. The company says that it will further increase the capacity to 240,000 by the beginning of 2010.|
|Dongfeng Honda Automobile is also planning to build its second plant (new plant), which is capable of producing 240,000 a year, in the adjacent site of its Wuhan plant (existing plant) (The initial production capacity is 120,000 a year). In September 2009, the company already won approval for land use and will begin the construction, when it wins approval from the Chinese government, as early as in March 2010. Operations will partially start in 2011, when it will introduce new Civic. Full-scale production is expected to begin in 2012. It is said that production of Dongfeng Honda Automobile's own-brand vehicles will be added.|
|Dongfeng Peugeot Citroen Automobile (Dongfeng Peugeot Citroen Automobile Co., Ltd.) is a joint venture company between Dongfeng Motor Corp. and PSA. In November 2009, it completed the first-stage construction of the second (Wuhan) plant (Passenger Vehicle plant) in Wuhan city, starting volume-production of Citroen C5. The new plant is capable of producing 150,000 a year (which is said to be increased to 300,000 in the future). Combined with 300,000 of the first (Wuhan) plant (Passenger Vehicle plant), the production capacity of Dongfeng Peugeot Citroen Automobile increased to 450,000.|
|China: Light vehicle production by Manufacturing group (IHS Global InsightForecast)||(Unit)|
|ANHUI JIANGHUAI||ANHUI JIANGHUAI||175,550||283,122||364,262||395,715||410,595||433,475||465,211||496,804|
|BEIJING AUTOMOTIVE||BEIJING AUTOMOTIVE||45,291||51,013||57,437||73,327||96,109||102,426||104,683||111,923|
|BYD AUTO||BYD AUTO||192,971||427,732||457,395||453,409||434,802||423,611||441,875||439,061|
|CHENGDU WANGPAI||CHENGDU WANGPAI||2,403||4,051||3,982||5,901||6,264||6,390||6,697||6,991|
|CHENGDU XINDADI||CHENGDU XINDADI||3,471||2,629||2,806||3,368||3,441||3,536||3,689||3,869|
|CHINA FIRST TRACTOR||CHINA FIRST TRACTOR||4,379||6,680||7,954||7,888||8,372||8,543||8,953||9,344|
|CHRYSLER LLC||BEIJING JEEP||0||0||0||0||0||0||0||0|
|DONGAN HEIBAO||DONGAN HEIBAO||36,785||63,630||55,638||56,538||59,593||61,017||64,074||66,977|
|FAW TIANJIN MEIYA||604||4,434||4,730||4,694||4,970||5,158||5,500||5,786|
|FEIDIE AUTO||FEIDIE AUTO||0||9,567||8,958||9,087||9,259||9,761||10,446||11,145|
|FUJIAN LONGMA||FUJIAN LONGMA||3,914||2,309||1,298||2,637||2,726||2,834||2,992||3,155|
|GREAT WALL||GREAT WALL||134,339||226,560||279,636||296,399||328,135||379,326||416,857||455,516|
|GUANGZHOU AUTO BUS||0||858||1,087||1,113||928||955||998||1,042|
|GUANGZHOU YANGCHENG||GUANGZHOU YANGCHENG||534||0||0||0||0||0||0||0|
|GUILIN BUS||GUILIN BUS||0||1,080||948||971||964||785||821||857|
|GUIZHOU YUANTONG AERONAUTIC AUTO||GUIZHOU YUANTONG AERONAUTIC AUTO||0||500||506||540||561||592||622||652|
|HEBEI CHANGZHENG||HEBEI CHANGZHENG||0||1,934||2,784||3,043||3,143||3,250||3,432||3,604|
|HUBEI SANHUAN||HUBEI SANHUAN||0||459||429||428||458||472||493||513|
|HUNAN ZOOMLION AXLE WORKS||HUNAN ZOOMLION AXLE WORKS||2,950||1,299||1,445||1,580||1,631||1,686||1,781||1,870|
|JIANGLING AUTO GROUP||JIANGLING||65,559||81,228||87,990||101,977||107,581||112,899||121,229||130,512|
|JIANGXI FIRE ENGINE||JIANGXI FIRE ENGINE||0||1,156||1,178||1,205||1,055||1,057||1,357||1,418|
|JINGGONG ZHENJIANG AUTO||JINGGONG ZHENJIANG AUTO||0||73||54||55||58||58||61||66|
|KING LONG||GOLDEN DRAGON||9,563||9,785||10,295||11,255||11,675||12,132||12,792||13,599|
|LIAONING LINGYUAN AUTO||LIAONING LINGYUAN AUTO||0||1,910||1,929||2,059||2,141||2,259||2,373||2,489|
|SHAANXI AIRCRAFT||SHAANXI AIRCRAFT||0||0||0||0||0||0||0||0|
|SHANDONG AUTO||SHANDONG AUTO||0||878||807||804||861||886||926||966|
|SHANDONG KAIMA||SHANDONG KAIMA||64,439||98,756||101,581||109,620||109,976||112,133||116,061||120,477|
|SHANDONG TANGJUN OULING AUTO||SHANDONG TANGJUN OULING AUTO||37,169||59,455||54,815||60,948||66,378||66,276||70,320||74,827|
|SHANXI AUTO GROUP||SHANXI AUTO GROUP||0||8,921||7,943||7,918||8,474||8,716||9,110||9,516|
|SHENYANG FUSANG||SHENYANG FUSANG||0||0||0||0||0||0||0||0|
|SICHUAN AUTO GROUP||YEMA AUTO||0||1,408||1,190||1,199||1,215||1,241||1,280||1,311|
|SICHUAN NANJUN||SICHUAN NANJUN||35,953||45,912||49,595||50,150||53,242||54,333||56,935||59,422|
|SICHUAN YINHALE MACHINERY||SICHUAN YINHALE MACHINERY||1,980||1,891||2,070||0||0||0||0||0|
|ZHENGZHOU YUTONG COACH||ZHENGZHOU YUTONG COACH||0||3,454||3,279||3,267||3,497||3,597||3,759||3,928|
1. Data indicate figures of only small-size vehicles, including passenger cars and light commercial vehicles with a gross vehicle weight of under 6 tons. Trucks and buses in the segment of larger than medium-size vehicles are not included.
2. Figures for 2008 and 2009 indicate actual production results.
3. All rights reserved. Reproduction of any data will require permission of IHS Global Insight.
Production Forecast : China (IHS Global Insight Forecast)
- The Chinese government's plan to implement Euro-4 emission standards for light vehicles nationwide from 1 July 2010 is subject to delay, as China would not be able to supply fuel that met the Euro-4 standard for the whole nation by 2010. In fact, according to the China Association of Automobile Manufacturers (CAAM), the only fuel that China could produce and supply for the whole country at this stage would meet only the Euro-3 standard. CAAM has been calling for the government to delay the implementation of Euro-4 emission standards. As CAAM argues, premature implementation of Euro-4 would do more damage to the environment and incur higher costs for Chinese consumers.
- Chinese car exports experienced a sharp downfall of more than 60% in 2009, and so the Chinese government issued its Plan for Promoting Car Exports in October 2009. According to the plan, the Chinese government is aiming to expand exports of vehicles and vehicle parts by an average of 10% a year through 2011, and to triple exports to US$85 billion a year by 2015. China will encourage domestic automakers to set up production plants and outlets overseas and to support the export of energy-efficient auto products. China hopes automakers could shift their target export markets from the low end to the middle end and the high end.
- Apart from parallel production of old and new models, it has become common practice for foreign companies to launch "new" models based on "old" platforms in China. Successful examples include the VW Lavida (model y) and the New Bora (model x), which are based on the old Bora (PQ34 platform). Other examples include Hyundai/Kia's RBC and QBC (both of which are based on the current Accent platform), the EFC and NFC (based on the old Sonata EF and NF), SGM Wuling's GP50 (based on the current Excelle J200 platform), and PSA's TX3/BX3 (based on the PF2 platform). SGM is also planning a major changeover for its current J200 Excelle in 2012 (under model code SGM615).
- The Chinese passenger car market is showing strong signs of recovery, and so many major global OEMs are now planning to expand capacity.
- Dongfeng Nissan will spend 6.5 billion yuan (US$953 million) to build three plants in the next three years. A total of 5 billion yuan (US$735 million) will be used to develop new passenger car plant in Guangzhou. This will bring the total annual capacity of the Guangzhou plant to 600,000 units (it is currently 360,000 units). A total of 1.5 billion yuan (US$218 million) will be invested on Dongfeng commercial vehicle plants, including a new engine plant, with an annual capacity of 100,000 units, and the second plant for Zhengzhou Nissan, which will bring extra annual capacity of 100,000 units.
- BMW and Brilliance China will invest US$735 million to expand their annual capacity from 30,000 units to 75,000 units by the end of next year and to construct a second plant (scheduled to commence in 2010). Annual capacity of the second plant will reach 100,000 units.
- Changan Ford will invest 3.34 billion renminbi (US$490 million) to build a highly flexible passenger car plant in Chongqing. Upon the completion (in 2012) the new plant will be able to produce 150,000 units a year, thus boosting total annual production capacity at Changan Ford Mazda to 600,000 units.
- VW announced that it would spend a further 4 billion euro (US$5.8 billion) on its operations in China over the next few years. The investment plan was approved by its Supervisory Board on 11 September. The money, which will come from the cash flow of its Chinese joint ventures, will be invested between 2009 and 2011. The investment will be used to expand annual capacity at its facilities in Nanjing and Chengdu to 300,000 and 350,000 units respectively; this will include the construction of new body, paint, and assembly facilities. The expansion should be completed by 2012. The Nanjing plant will build three new models, while the site at Chengdu will manufacture two models.
- Honda, however, has decided against expanding its capacity in Guangzhou. Although its Chinese partner, Guangzhou Auto, indicated that it wants to expand the capacity of the two plants in Guangzhou.from the current 360,000 units to 480,000 units.Honda does not plan to do so this year or next year. Currently, Honda has two plants: one with annual capacity of 240,000 units (on two shifts) and one with a capacity of 120,000 units.
- Chinese OEMs are riding the waves of merger and acquisition both at home and abroad. In the latest development, Beijing Automotive is said to have acquired 40% of Fujian Daimler in July. It would manufacture Mercedes Viano, Vito and Sprinter in Fujian Province.
- The biggest deal of 2009 came in November, when Changan announced its merger with Changhe and Harbin Hafei. The new Changan Group is expected to produce around 1.2 million light vehicles in 2010, which makes it one of the largest automotive groups in China. Changan's deal also demonstrates that the Chinese government is speeding up the long overdue consolidation of Chinese auto industry, as laid out in its Auto Industry Stimulus Plan. We would expect the new Changan Group to integrate the passenger car and mini-vehicle platforms of Changan, Changhe, and Harbin Hafei in the coming years, as those platforms are used to produce competing models.
- On the international stage, Geely is reported to be at the final stage of negotiations with Ford about a takeover of Volvo. Geely expects to seal the deal by the end of 2009, assuming it can manage to solve the thorny intellectual property issues with Ford in the coming weeks. Geely's acquisition push is fully backed by Chinese state banks, which would provide a funding of US$1 billion.
- Beijing Automotive is reported to be teaming up with a U.S. merchant banker Merbanco to evaluate taking over the Swedish brand Saab from GM. This news comes after the Swedish "supercar"manufacturer Koenigsegg withdrew its offer to buy Saab in late November.
- SAIC confirmed it is in the process of acquiring U.K van-maker LDV. SAIC is reportedly interested in the powertrain technology, as well as in the production line for Maxus vans, and it intends to move LDV's production operations to China. In addition, SAIC is also talking to General Motors about buying one of its India plants to produce its Wuling vans in the country.