3 carmakers prop up Beijing's auto expansion in 2003

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Last updated at: (Beijing Time) Friday, February 06, 2004

3 carmakers prop up Beijing's auto expansion in 2003

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Beijing's auto industry saw its fastest expansion in the country in 2003, with Beijing Hyundai, Beijing Jeep and Beijing Foton, the three biggest local carmakers, becoming the pillars propping up its rapid growth.

According to Beijing Automotive Industry Holdings Corp. (BAIHC), China's fifth largest auto group, auto sales revenue more than doubled from 2002 to 30.82 billion yuan (3.7 billion dollars) in the city last year, up 162.1 percent.

A total of 348,000 motor vehicles were produced and 336,000 sold in the capital last year, reversing the loss-making trend of the industry in the past few years.

Beijing Hyundai, Beijing Jeep and Beijing Foton, said Cheng Lianyuan, director of Beijing's industry promotion bureau, were driving the city's auto development.

Beijing Hyundai, the local auto giant involving BAIHC and the biggest automaker Hyundai Motors of the Republic of Korea (ROK), sold 52,000 vehicles last year, exceeding that of China's well-established carmaker FAW Car Company Limited.

It expects to more than double its output next year to produce 130,000 vehicles, including 60,000 Hyundai Sonata sedans, which were introduced at the end of 2002, and 70,000 of the smaller Elantra sedans launched on Dec. 23, 2003.

Beijing Jeep, China's leading off-road automotive-making venture between BAIHC and German-US Daimler-Chrysler AG, reported sales revenue of 3.4 billion yuan (410 million dollars) last year,up 167.3 percent over the same 2002 period due to growing demand for its sports utility vehicles (SUVs).

Unveiling its Mitsubishi Outlander last month, the corporation,according to Executive Vice-President Tong Zhiyuan, will strive toexpand the company's present 15 percent share of China's SUV market by increasing production and sales of the SUV series to 40,000 respectively in 2004.

Beijing Foton, the national capital's largest commercial vehicle production base and a subsidiary of BAIHC, ranked fifth interms of commercial vehicle production and sales in the nation last year, striking a sales volume of 15 billion yuan (1.8 billiondollars).

The company, said BAIHC Chairman An Qingheng, has set up Asia'sbiggest heavy-duty truck production base. It expects this year's sales revenue will exceed 20 billion yuan after introducing high-class Mercedez-Benz heavy-duty trucks.

The auto industry has become a new economic growth point for Beijing as 37.3 percent of the city's 2003 industrial growth was contributed by BAIHC, said Chen Lianyuan.

Priority will, he said, be given to developing sedans and SUVs as well as commercial vehicles like light trucks and heavy-duty trucks in the future.

As the number of Beijing's private-owned motor vehicles surpassed more than 1.28 million of the two million total vehiclessince August 2003, Beijing is leading the country in ushering in an auto age.

Source: Xinhua

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