2010 Sales Goals for Chinese manufacturers all up, despite tax being up too

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2009 was a brilliant year for Chinese car manufacturers, with every month setting yet another record from January’s low sales, to Decembers record high sales. Early in the year the Chinese government stepped in to cut tax on sub 1.6L cars to 5%, whilst this boosted car sales in a massive way, the government raised sales tax to 7.5% for 2010 to cool down the market whilst continuing with steady growth at the same time.

Obviously manufacturers are aiming for higher sales than 2009, especially with the government continuing to extend the vehicles to the countryside for another year which was the driving force behind the mass sales in 2009. Today various companies published their production goals for 2010, these have been set as:

GM: 850,000 vehicles
Last week high level officials from GM management expressed that GM China is aiming to produce 850,000 vehicles, this estimate is above the industry average, GM are aiming to split their market into 30% mid to high level vehicles, whilst the other 30% will be mid to low small economy vehicles.

In 2009, Shanghai produced over 720,000 vehicles, which is an increase of over 58% over the previous year.

Dongfeng-Nissan
In 2009, Dongfeng-Nissan sales reached over 510,000 vehicles, a year on year increase of 48% over 2008 which made it the biggest car maker in Southern China, and the fifth biggest car maker in the PRC. As a result, Dongfeng Nissan have increased their 2010 sales goal to 600,000 vehicles.

Dongfeng Fenshen
The Fengshen range is Dongfeng’s own subbrand that they launched earlier this year as a new brand to accomadate their popular MPV and recently launched compact sedan. In 2010 they are aiming to sell 60,000 vehicles as they have expanded their dealership network from 80 to 104 dealers. This year Dongfeng plans to launch the H3 model which is the hatchback version of the S30 sedan. Crossover versions with the usual black plastic cladding and raised suspension are expected to launch later this year, sales are expected to be 48,000 sedans, and 12,000 hatchbacks, sales of the future S30 sedan hybrid models are expected to be around 300 vehicles.

Chang’an Mazda
Chang’an Mazda are responsible for producing the Mazda2 sedan and hatch, and also the Mazda3 sedan in China (The Mazda3 hatch is an imported model). The 2010 sales goal is expected to break through the 100,000 vehicles barrier, with the Mazda2 expected to account for around 30,000 sales, whilst the imported Mazda3 is expected to sell around 10,000 units in 2010. The domestically produced Mazda3 sedan is aiming for sales of 60,000 vehicles. Mazda is also aiming to expand its dealer network from 113 to 150.

FAW-Mazda
The FAW-Mazda joint venture is responsible for producing the last generation Mazda6 and the new Mazda6 (Rui Yi) and are aiming for combined sales of around 150,000 vehicles in 2010. FAW-Mazda also sell imported models such as the Mazda5, CX-7, MX-5 and Mazda 8 MPV, however the CX-7 and Mazda8 MPV are expected to be produced in China in the second half of 2010. 2010 sales have been set at 150,000 vehicles.

BYD
In 2009 BYD sales increased by 162%, with total sales of 448,000 vehicles, BYD are aiming to double their sales again for 2010 with a goal of 800,000 vehicles. Sales of 800,000 is an impressive figure for a company that has only just appeared. BYD have surpassed established JV’s such as Beijing-Hyundai and Dongfeng-Nissan, and are behind Shanghai GM and VW in total sales for 2010.

BYD are still aiming to become the worlds largest automaker by 2025

Chery
Chery, like other self developed Chinese brands, are aiming high for 2010 with a sales goal of 700,000. In 2009 they did achieve sales of around 500,000 vehicles, so for 2010 they are aiming 40% higher for 2010

Brilliance
Brilliance are aiming for sales of 500,000 vehicles in 2010, which is a 43.7% increase over 2009 sales. However in 2012 they are aiming for one million car sales, and one million engine sales.