Giant automakers reaffirm confidence in China market
\nsales forecasts<\/p>\n
Agence France-Presse, Beijing<\/p>\n
The giants of the car world Wednesday reaffirmed their
\nconfidence in the Chinese auto market, forecasting strong sales
\nand brushing off concerns that supply will soon start to outpace
\ndemand.<\/p>\n
U.S.-German group DaimlerChrysler led the charge, announcing
\none billion euros in investment to China over the next few years.<\/p>\n
Sales for all DaimlerChrysler brands were forecast to reach
\n60,000 units in 2004, up 75 percent from 2003, said Roman
\nFischer, chairman and chief executive officer of DaimlerChrysler
\nChina Ltd.<\/p>\n
FAW Toyota Motor Corp meanwhile said it was struggling to keep
\npace with booming demand,and has set a sales target of 128,000
\nvehicles this year.<\/p>\n
Executives at the joint venture between Toyota Motor Co Ltd
\nand First Automotive Works, each ranked number one in their
\nrespective home markets, said this compares with 98,000 sold last
\nyear.<\/p>\n
Wang Fachang, deputy president of FAW Toyota Motor Sales Co
\nLtd, said he was very confident about the outlook for the Chinese
\nauto sector despite concern in some quarters about overcapacity.<\/p>\n
"Currently, our entire output capacity is still unable to meet
\ndemand," he said at China's flagship motor show, AutoChina, which
\nhas attracted virtually all the world's leading car producers.<\/p>\n
To keep up with demand, FAW Toyota would expand capacity at
\none of its Tianjin plants to 100,000 units by the end of this
\nyear, compared with an originally planned capacity of 30,000
\nunits, Wang said.<\/p>\n
A second manufacturing plant will also be built in Tianjin to
\nmake the Crown luxury sedan and a number of mid-range vehicles,
\nultimately having capacity of 150,000 units annually.<\/p>\n
While Citroen, a unit of PSA Peugeot-Citroen of France,
\nexpects its car sales in China to slow this year, they will still
\ngrow 20 percent to 124,000 units and company officials were
\nbouyant.<\/p>\n
"I don't see there is anything to be pessimistic about ...
\nthis is still fantastic for any market," said Claude Satinet,
\nCitroen general manager.<\/p>\n
Last year, Citroen sold 104,000 vehicles after 2002 sales rose
\n60 percent to 84,000.<\/p>\n
Satinet's sales forecast, however, would appear to echo
\nGeneral Motors' comment this week that car sales have been
\naffected as the Chinese government takes measures to tighten
\ncredit and so cool its overheating economy.<\/p>\n
Auto sales in China are expected to drop 20 percent in May
\nfrom April on the back of the impact of the government's credit
\ntightening policy and poor market sentiment, according to a
\nresearch report by Merrill Lynch.<\/p>\n
When asked about fierce price competition in China, Satinet
\nsaid Citroen has a high degree of local content which will help
\nit cope.<\/p>\n
"If prices fall, we will also follow suit but not by more than
\nthe decrease in the market," he said.<\/p>\n
Joachim Schmidt, head of marketing sales for the Mercedes car
\ngroup, said he sees the potential for sales of 50,000 Mercedes
\npassenger cars in the medium- to long-term in China, compared
\nwith 9,000 units in 2003.<\/p>\n
"Ten percent of global sales are in Asia-Pacific at the moment
\nbut that will increase to 13 percent in the next two years,
\npowered by growth in China," he said.<\/p>\n
"We are very confident about hitting sales targets in China."<\/p>\n
Among other automakers attending China's biggest car show,
\nNissan Motor Co said it expects China to represent 10 percent of
\nits global vehicle sales by the end of the decade, up from about
\nsix percent now.<\/p>\n
The Japanese company is maintaining its sales target of 90,000
\ncars in China this year, up from 65,000 sold last year.<\/p>\n
"We'll have three big markets -- the U.S. and Japan -- but
\nChina will be a very strong third," Jean-Jacques Le Goff, senior
\nvice-president of Nissan Motor told reporters.<\/p>",
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