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Changan confident to sell 1m vehicles in 2008

By Hao Zhou (chinadaily.com.cn)
Updated: 2008-05-13 16:08

Based on its first quarter sales of 260,000 vehicles this year, Changan Automobile Co Ltd, China's fourth largest State-owned automaker, is confident it will achieve its annual sales target of 1.02 million vehicles, said the automaker's board chairman Xu Liuping.

According to Xu, Changan plans to forge seven independently developed sedan platforms, five mini-car platforms, and three engine platforms, releasing 36 independent models as well as 12 new engines in next three years. The roll out of the V101, with either a 1.3-liter or a 1.5-liter engine, in the latter half this year is in keeping with Changan's agenda.

Xu also revealed that some mini models, even smaller than the Benben, will be released by the end of next year. Meanwhile, more sport utility vehicles and medium- and high-end marques are also on the Changan agenda.

Affected by the US economy slowdown and Chinese tightening economic policies, the Chinese auto market may slow down its expansion to between 17 and 18 percent this year, but Chinese customers' demands are still robust in the long run, predicted Xu.

With regards to Changan's overseas strategy, Xu said Changan is now concentrating on integrated overseas expansion, from management mechanisms to market exploration, rather than simply increasing sales volume. It is focused on developing countries because China-made autos are more competitive there, Xu introduced.

At the end of last month, Changan released its independently developed Zhixiang into the medium car market. It will also provide 20 of its Jiexun hybrid vehicles for use during the 2008 Beijing Olympics. "We need to master the hybrid technologies from engines and other assemblies for integrated vehicles," said Xu. He called for more supportive policies like favorable taxes for companies developing hybrid vehicles.

In addition, he said infrastructure is another important factor affecting the development of hybrid vehicles. He added that setting up battery supply stations and providing standard battery might be a better option.