China to subsidize use of energy-efficient vehicles

Shanghai, February 6 (Gasgoo.com) China will subsidize the use of energy-efficient and new-energy vehicles in 13 cities, the Ministry of Finance has announced. The government subsidy is intended to encourage the manufacture and use of "greener" energy-efficient vehicles, xinhuanet.com reported today.

According to a recent joint statement of the Ministry of Finance and the Ministry of Science and Technology, the central government will offer a one-off subsidy for buying hybrid, electric and fuel-cell vehicles. The subsidy will vary with the difference between the prices of new-energy vehicles and those powered by traditional fuel.

Chery's Jan sales up 36% y/y to 35,000 units

Shanghai, February 6 (Gasgoo.com) China's automaker Chery Automobile Co reported all-time high monthly sales of 3, 5000 units in January, up 36.14% year on year and 31.5% month on month respectively.

Chery A5 sold 6,000 units. Chery QQ sales hit 15,000 units. A3, Chery's in-house developed model, saw sales reach 3,000 units last month. The A3 hatchback now is even short in supply due to hot selling.

GM to form JV with Harbin Light Truck Factory

Shanghai, February 2 (Gasgoo.com) General Motors Corp is set to form a joint venture with northeastern China's Harbin Light Truck Factory Co. Ltd after the latter terminates partnership with FAW Group, said sina.com today. The venture may produce pickups, SUVs and light trucks for GM.

Harbin Light Truck Factory started as a military-industrial plant making heavy military trucks. Later it also came to make civilian-use trucks and mini-vans. In the mid-1990s, the factory ended its affiliation to Ministry of Space Industry and partnered with FAW Group to make pickups, Jiefang trucks and mini-vans for the Chinese auto giant. Many of the vehicles have been exported to the Middle East and Africa.

Chinese cars gear up for emerging Philippine market

That was the first sentence from Wang Juhui, a representative from China-based Lifan Motors, at the launch of the auto brand's first showroom in the Philippines' capital of Metro Manila.

With the young and energetic assistant general manager, there came the LF520 mid-size sedan, a car model exported to more than 50 other countries, including Australia, Germany, Spain, Russia, Vietnam, Iran, Chile and Venezuela.

Dubbing LF520 as a "World Car," Wang said that the engine was designed by the renowned automobile design firm Ricardo Plc. Based in the United Kingdom. And Italian designers were employed by the manufacturer so that the model became top of the line in the looks department.

"We want to keep the design of the car sleek and stylish to appeal to the young at heart. It is loaded with features that will definitely appeal to the adventurous spirit," said William Agcaoili, general manager of Lifan Cars Philippines, the manufacturer's partner in the Philippines.

Lifan Motors, a motorcycle manufacturer-turned car company like Honda, entered the global passenger car industry in March 2007 with the release of the LF520 in Vietnam. In 2008, the company sold over 20,000 units in markets outside China.

Today, it "sailed" to the Philippine archipelago to seek new opportunities. As explained, the Lifan logo means "powerful sailing boat."

Last year, the Philippines posted a 5.6-percent growth of auto sales despite the global financial crisis. The sales reached 124,449 units in 2008, compared to the previous year's 117,903.

"We are bringing the LF520 in the Philippines so that Filipinos can also enjoy our world-class vehicle which is priced more affordably," said Nelson Ong, president of Lifan Cars Philippines.

The price is expected to be set around 500,000 pesos (10,600 U.S. dollars) for the 1.3-litre model.




Chinese Cars chery geely nanjing hafei zhonghua SAIC lifan zhongxing great wall motor FAW MG Rover Dongfeng Changfeng China Auto

Best 13 selling SUV's in China auto market, (Jan-Oct 2007)

The table below shows top 13 best selling SUV models, in Chinese market, October.
Rank Automaker Model Jan-Oct sales Y/Y change Market share
1 Great Wall Hover 46,979 114.9% 15.8%
2 Chery Tiggo 41,996 101.7% 14.1%
3 Beijing Hyundai Tucson 36392 64.8% 12.2%
4 Dongfeng Honda CR-V 35014 61.5% 11.8%
5 ZOYTE ZOYTE 2008 24623 - 8.3%
6 Changfeng Liebao 13795 -1.7% 4.6%
7 Toyota Prado 8413 71.6% 2.8%
8 Go-now Go- now 8068 46.6% 2.7%
9 Dongfeng-Nissan Paladin 7668 36.05% 2.6%
10 Landwind Landwin 7269 -12.4% 2.4%
11 SG Auto Shugang 7563 7.2% 2.5%
12 Changfeng Pajero 5319 22.3% 1.8%
13 JAC Refine 5639 - 1.9%


Chinese Cars chery geely nanjing hafei zhonghua SAIC lifan zhongxing great wall motor FAW MG Rover Dongfeng Changfeng China Auto

Chinese Cars spark in South Afican Auto Market more and more

We may set up a manufacturing plant in South Africa,” says Geely South Africa chairperson Jacqui van Heerden. “If we achieve sales of around 10 000 units a year, we’ll consider it. Markets such as the US and Europe may also offer lucrative export opportunities.”

Geely is only one in a series of Chinese vehicles which have entered the country over the last two years, all through entrepreneurs aiming to snatch market share in the largest economy in Africa.

Geely’s plans are indicative of a new phase in Chinese vehicle manufacturing. It’s no longer only about making and selling vehicles in China. It’s about making and selling vehicles in China, and everywhere else in the world. And not a Chinese-made Honda or Ford either, but a true Chinese brand.

Geely is one of the first movers in this regard. It can afford to do this as it has no bureaucratic ties.

Geely is privately owned, with no shareholding by the Chinese govern- ment – which erases the argument of unfair competition owing to State subsidies. (The only other privately owned Chinese vehicle manufacturer, Chery, will start exporting vehicles to South Africa later this year, with the distribution rights going to McCarthy.)

What this means for Geely South Africa is that the Chinese parent company holds a direct stake in the local company, as it considers South Africa an important part of its future export growth strategy.

Geely South Africa is, therefore, 40% owned by the Chinese parent company, and 60% by local company TJM Holdings.

Van Heerden says TJM Holdings looked at trends worldwide, and decided “that Chinese vehicles are going to be the next big thing”.

JAPAN, KOREA, CHINA?
These days, South African business says ‘China’ is preceded by the same audible gasp once reserved for South Korea or Malaysia, or any other so-called Asian tiger.


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Chinese cars win increasing buyers in ME, N Africa markets

CAIRO, Dec. 26 (Xinhua) -- For years, consumers in the Middle East and North Africa (MENA) have become used to buying small and low-tech made-in-China commodities. But now, they are showing increasing interest in trying something bigger -- China's home-grown sedans.
Within just several years, cars with Chinese brands are quickly leaving their own marks on streets in MENA countries, from Jordan to Egypt, which had been traditionally dominated by cars from Europe, Japan and South Korea.
Like many other made-in-China goods, Chinese brand cars have a formidable edge over their competitors with lower prices and high quality.
In the Jordanian capital Amman, Ala Suleiman who had just by a Chery sedan told Xinhua that he chose Chery because of its competitive price, soft installment payment and fuel economy. Chery Automobile Co. Ltd., one of the biggest home-grown carmakers in China, began to sell its car in Jordan about three years ago. And by now, Chery has sold more than 3,000 units in this Arabnation, said Moutaz al-Shaweish, sales manager of the franchise store set up by Chery Jordan Company Ltd.
Such sales volume was quite satisfactory given the fact that Chery, as a newcomer in the world's fiercely-competitive auto industry, was totally unknown in the Jordanian car market several years ago, said al-Shaweish.
"Actually, we were (then) facing many difficulties to convince consumers to buy our cars when they were offered for the first time in the market," al-Shaweish recalled.
But now, "we are not facing such difficulties as Chery isgrowing stronger and more competitive. Jordanians are willing to buy (Chery cars) for their quality and prices," he told Xinhua, adding that Chery car prices were competitive in comparison withany other brand including those from South Korea. Eng. Mohamed al-Qalam, chairman of Chery Jordan Company Ltd., said that demand for Chinese-made cars, including Chery, was remarkably good in Jordan this year.
"Chery gave consumers freedom of movement and choice in addition to specifications which meet demands of low-income brackets," al-Qalam told Xinhua.
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China Auto Controversy in Europe

The trucks were widely panned at the 2007 Frankfurt Auto Show in September as being shameless copies of the BMW X5 and Toyota RAV4. China Auto's vehicles seemed to draw more attention from corporate lawyers than any potential customers. Plans to import the Smart Fortwo-aping Noble city car have already been put on indefinite hold following legal threats from Smart's parent company, Mercedes-Benz. The Noble was a notable no-show in Frankfurt.

However, Karl Schlössel, chief executive of Augsburg-based China Automobile, recently told Inside Line that 1,700 vehicles will soon be arriving from China and for sale in Europe by early to mid-December. Built by Shuanghuan Automobile in Shijiazhuang, China, the CEO and UFO are sold in their home market as the Shuanghuan SCEO and the Laibao.

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