Enterprises brewing to reduce sales goals

　　The Beijing News reported in August 5 that the plan of BYD to double annual sales for 6 years has been challenged. Yesterday, BYD announced to reduce its 2010 car sales goal by 25% to 600,000 units. BYD is the first company to cut down its sales plan this year. According to the reporter, some other enterprises are also brewing to cut down the original sales goal.

　　The target to double annual sales for 6 years will fail

　　Yesterday, BYD Auto Sales Company announced that it will reduce its annual sales target from 800,000 to 600,000, and said this is due to the company’s current production capacity, and also the demand for its overall strategy to build brand. BYD side stated that the revised target is still 34% higher than the 2009 sales volume.

　　The industry believes that BYD’s action is mainly due to actual sales situation. In the first half of this year, BYD sold 10,000 cars 28.9014, up 63%, but this is only 36% of the original 800,000 goal. In addition, BYD’s plan to expand production capacity has also been hampered. In July, the building its second factory in Xi'an has been suspended temporarily by Department of Homeland supervision on suspicion of illegally occupies.

　　Over the past 5 years, BYD has maintained annual growth of almost 100%: in 2005 sold out 16 000, in 2006 sold out 55 000, in 2007 was 86,000, sales in 2008 reached 170,000 and in 2009 sold out 448 000. But this year its goal to double annual sales for 6 years will not be achieved.

　　Automotive growth slowing

　　BYD is the first company to cut down its sales plan this year, but not the only one. According to the reporter, some other enterprises are also brewing to cut down the original sales goal.

　　In the first half of this year, a number of car enterprises especially independent brands, have not achieved half of their original sales targets. For example, Chery completed 43.65% of the first half-year plan, Great Wall Motor completed 30.45 % and Lifan only completed 26.29 %.

　　in 2009, promoted by economic growth and a series of government incentives, China total vehicle sales reached 13.6 million, up 46%. China surpassed the U.S. as the world’s largest auto market, which makes many companies optimistic about the sales of this year.

　　In the first half of this year, China auto market still maintained rapid growth, but growth began to slow down during the last two months. Some analysts predict that in the second half growth will slow further. A large number of car enterprises had previously cut down their sales plans when the 2008 financial crisis occurred.

　　(Translator: Yalong/Jessie)

　　See original Chinese report Please click: http://auto.sohu.com/20100805/n274016651.shtml