Major Chinese and foreign car makers are looking to china for continued sales growth in 2012.
Despite forecasts for slow auto sector growth, major carmakers Dongfeng, Geely, Kia and Opel all hope to increase commercial and passenger vehicle sales in China this year. Delivery growth slowed last year from the 32% rate in 2010, however many industry experts believe China will continue drive the world's demand.
Zhejiang Geely hopes to stimulate sales by introducing seven new models, including four cars, two SUVs and an MPV. The company sells vehicles under Gleagle, Emgrand and Englon brands and expects to increase sales by 10% to 473,000 units this year.
Fellow Chinese car giant Dongfeng Motor Corp also predicts an 8% sales growth for 2012, which it hopes to achieve by generating extra revenue from its numerous joint ventures. China's second-largest automaker produces many vehicles under its own brands, but also has several high-profile joint ventures with Honda Motor Co, Nissan Motor Co, PSA Peugot Citreon and Kia Motors Corp. Through this, Kia aims to boost China sales by as much as 12% to 480,000 vehicles this year.
GM-owned Opel will try to expand its relatively small share of the growing market with plans to increase sales by 10%. In 2011, Opel sold only 5,000 vehicles across China, but expects that number to grow to 5,500 vehicles as the brand begins sales of the Insignia Sports Tourer station wagon and the Zafira Tourer minivan.
“Even if we grow Opel in China, it will always stay a niche brand” says Kevin Wale, head of China operations at GM, “but we will continue to build our success with Chevrolet, Buick, Cadillac, Wuling and the newly established Baojun brand.” Sales of these brands rose 9.4%, 17.4%, 73% and 3.9% respectively. Baojun sales were not disclosed. According to Wale, the future of Opel lies in becoming successful in Europe again.