China's SAIC-Chery Auto 2002 Sales Up 70%(a big deal)

SHANGHAI February 20,2003; Dow Jones reported toeday that SAIC-Chery Automobile Co., a Shanghai-based automaker of low-end compact cars, sales last year rose 70% to about 5 billion yuan.

SAIC-Chery, which has emerged as one of the fastest growing car companies last year in China, sold more than 50,000 Chery cars, claiming a 4.4% share of China's car market, according to a company official.

The official said the company will launch three new models this year and expects to produce about 100,000 cars.

He added that with the completion of a second phase in its car plant, SAIC- Chery's annual production capacity is expected to reach about 300,000 units.

SAIC-Chery has recently forged a cooperation deal with Iran's SKT Co., to assemble cars in northeastern Iran.

SAIC-Chery is a joint venture between state-owned investment funds and Shanghai Automotive Industry Corp (Group), which is also the joint venture partner for General Motors Corp. and Volkswagen AG .