Chinese indigenous automakers set 2010 sale

　　With a recovery from 2008 downturn in the sector, Chinese auto industry has achieved an annual increase of 46.15% in 2009, a remarkable growth rate. Therefore, automakers have all been through a busy but joyful year as well.

　　As 2009 is drawing to an end, automakers have all released their sales targets for 2010. It is notable that, according to the mainstream thinking in the sector, China's auto sales may experience a significant slowdown this year and its growth rate will not be beyond 2009. However, Chinese indigenous automakers have all set their sales targets with a much higher growth rate.

　　Jianghuai motor has raised its sales target for 2010 at 300,000 units from 123,000 units in 2009 in passenger cars, with an increase rate of almost 150%. Changan plans to increase its sales target of passenger cars from 110,000 units to 250,000 units, up 127% from a year earlier. SAIC will realize an annual growth of 100% over the previous year. What’s more, BYD expects to double its 2009 sales target at more than 800,000 units in 2010, compared with last year.

　　Did those self-owned brand automakers just brag for their sales targets?

　　According to those ten self-owned brand automakers, which have already launched their sales targets for 2010, their auto sales will reach an average growth rate of 72.1%, drop from 74.4% compared with 11 automakers in 2009. Nevertheless, 11 joint-ventured automakers plan to grow by 22.7% on average; on the contrary, they achieved an average growth rate of 39.4% in 2009.

　　According to figures, 2010 sales targets of Chinese indigenous automakers are way much higher than those of jointed-ventured automakers, with more than 3 times of average growth rate of joint-ventured automakers, near to the average growth rate of 2009.

　　Some self-owned brand automakers even set sales targets with an increase of 100%, such as, Jianghuai (passenger cars), Changan (passenger cars) and SAIC. Only Hafei motor expects to grow by 25%, lower than the average increase rate of 30%.

　　BYD plans to double its sales target for 2009. as its sales exceeded 448,400 units in 2009, that is to say, BYD will expect to realize its sales targets at 800,000 units according to the plan, with a precisely increase of 79%, while 728,000 units were sold to mark SAIC as China’s sales champion in 2009. Furthermore, according to some Medias, Chery has planned to sell 800,000 units this year.

　　It’s doubtful that whether they will make their sales targets come true.

　　As for the aggressive ambition of Chinese indigenous automakers, some discussions have been conducted since the beginning of 2009. The auto market had only reached a growth of 6.7% in 2008. Under such background, Chery planned to sell cars with a growth by 17.7%, Geely with 25%, while BYD planned to grow by 100%. Mainly attributed to the government's stimulus packages and regained confidence over consumption, those sales targets have been completed easily.

　　From the year before, automakers had experienced an awkward situation that they failed their sales targets. Chery had planned to sell 480,000 units in 2008, and Geely were 240,000 units. Struck by unexpected economy crisis, the growth rate in Chinese auto market had dropped to 6.7%, from the previous 20% and 30%. Most automakers had failed to achieve their sales targets: Chinese indigenous automakers Chery and Geely were respectively sold 356,000 units and 222,000 units.

　　From the perspective of automakers, Chinese indigenous automakers are facing with domestic and overseas market.

　　Whether overseas market will recovery from economic downturn is still unclear, so automakers can’t depend on overseas market to support its sales growth on large scale.

　　As for Chinese auto market in 2010, the robust growth momentum of last year cannot be sustained, according to mainstream thinking in the sector, and the universal prediction for the growth rate will range from 15 to 20 percent.

　　Although the chances, which the downturn in the Chinese auto market in 2008 will reappear are quite slim, it’s still not certain for Chinese indigenous automakers to realize their sales growth, which are far away beyond 20%, even though their sales may hit the highest growth rate of 20 %.( Translator: Qinghua Serena)

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