| 13-11-2007
Most
listed automakers have reported better-than-expected first-half results, and some
agencies said that the market for passenger vehicles may grow by 15 to 20 percent
annually in the next decade. Domestic automobile manufacturers have released their
interim reports. Shanghai Auto predicted on July 7 that it expects a potential
triple increase in net profit. Nonetheless, the half-year report revealed the
domestic auto giant's net profit amounted to 2.72 billion yuan (US$360 million),
up 359 percent from 592 million yuan a year before, topping China's auto manufacturers.
Following the acquisition of 20 billion yuan worth assets from other parts of
its parent Shanghai Automotive Industry Corp through private placement, Shanghai
Auto's focus has shifted to producing complete vehicles. Currently, its overall
assets have reached 85.59 billion yuan. Foton,
the largest commercial vehicles producer in China, also recorded a six-fold increase
in profits. In the next five to 10 years, China's leading automakers are expected
to maintain an annual 30 percent growth on average, and several of them will become
global mainstream automakers, CITIC Securities forecast. Encouraged by explosive
growth, CITIC Securities issued a research report, in which it claimed the passenger
cars market will maintain rapid growth for 20 years based on a traveling conditions
upgrade, and the annual growth rate could be 15 to 20 percent over the next 10
years.
Editor
Frederick Wei from Chinabuses.com
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