Changsha To Make 1 Mln Vehicles A Year By '15

Shanghai, March 24, 2009:(Gasgoo.com) Auto making is becoming a pillar industry in southern Chinese city of Shangsha, capital of Hunan province. By 2015, the annual output of vehicles in Changhsha city is expected to reach 1 million units, with 100 billion yuan ($14.7 billion) in output value, local media reported today.

The Changsha plant of Beiqi Foton Motor has seen rapid growth in output and sales this year to date. Its daily output capacity is 350 vehicles, but the daily demand is reaching 400 units. Each day this month, nearly 400 Changsha-made Foton vehicles have been sold, and this month over 1,000 units have been ordered for overseas markets. This plant expects to see its record high monthly sales of 10,000 vehicles in March.

Truck-maker Shaanxi Auto is expanding its manufacturing base in Changsha by increasing its investment in the project by 60% to 1.6 billion yuan. The first phase of the project will start mass production in the second half of this year, with its annual output estimated at around 25,000 units.

Changfeng Motor aims to sell 280,000 vehicles annually by 2010, the Chinese SUV giant's CEO said at the Guangzhou auto show in late November 2008. The Changsha-base automaker will launch two new models in each of the coming few years. Of the 280,000 sales target, there will be 100,000 sedans, 100,000 pickups, and 80,000 SUVs.

The Chinese government recently launched the "vehicles to the countryside" program and will support it by offering 5 billion subsidies to farmers buying vehicles such as light trucks, minivans, motorcycles. This policy may also increase the sales of Changsha-made vehicles by 10,000 units this year.

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