The major automakers are looking to cash in on an strong second half forecast of consumer spending.
Nissan production line Image: Nissan UK |
China's auto-market may recover in the second half of 2011, according to China Association of Automobile Manufactures' Deputy Chief Dong Yang. More relaxed consumer spending may boost sales of mid-high end passenger cars this year, with government incentives for energy efficient cars acting as a possible catalyst for further sales. Good news then for Nissan, Mercedes, and Volkswagen, who are all aiming to benefit from the Chinese market.
Nissan's CEO Carlos Ghosn announced it is seeking to boost its market share from 6.2% to 10%, and plan to do so by increasing production capacity to 1.2m units by 2012. Last year Nissan sold 681,513 vehicles in China, but are still recovering from the disruption caused by the March 11 earthquake in Japan.
Daimler CEO, Dieter Zetsche, has announced that Mercedes is shifting into “attack mode” in China with a joint venture 100,000 unit-capacity engine plant and by launching production of the GLK compact SUV, both starting in 2013. Mercedes-Benz sales soared to 112% last year, totalling 148,000 units, with a further 62% jump in the first 5 months of 2011 to 75,896 units. The company also plans to add 30 dealerships this year. Zetsche says he expects one in five luxury cars to be sold in China by 2020.
Volkswagen has also received the go-ahead from Beijing to start building two plants in Guangdong and Jiangsu provinces, which are to have a total combined output of around 600,000 vehicles, and can begin production by 2013. VW currently has a 13.3% share of China's vehicle market, with 707,524 vehicles sold through May. It also plans to invest €10.6bn between 2011 and 2015 in the emerging market.