Dongfeng Motor aims to lift market share to 18% by 2010
(China Daily)Updated: 2006-11-21 15:55 Dongfeng Motor Corp, China's third-biggest automaker, said it aims to double its annual sales by the end of this decade on the tails of China's growing auto industry.
Zhou Wenjie, deputy general manager of the company based in Central China's Hubei Province, said it plans to sell 1.8 million vehicles in 2010, up from 900,000 units estimated this year.
The 2010 sales, if possible, would enable Dongfeng, the parent of Hong Kong-listed Dongfeng Motor Group Co Ltd, to lift its market share in China to 18 per cent from 12.66 per cent last year, Zhou said. The parent firm sold 729,000 vehicles in 2005.
He said the parent company aims to earn more than 10 billion yuan (US$1.27 billion) in profits in 2010. The company's 2005 profits reached 7.08 billion yuan (US$896.2 million), according to industry statistics.
"We are seeking sustainable and profitable growth which will give our investors stable, high and long-term returns," he said.
He said the market capitalization of Dongfeng Motor Group Co Ltd, which launched an initial public offering in Hong Kong at the end of last year, has expanded by 120 per cent to 32 billion Hong Kong dollars (US$4.11 billion). The listed company accounts for more than four-fifths of the parent company's total assets.
However, the listed unit closed at 3.74 Hong Kong dollars (48.07 US cents) per share yesterday, down 3.86 per cent.
Helped by buoyant vehicle sales and producers' increased cost-cutting endeavours, China's auto sector has regained profit growth this year after consecutive plunges over the past two years.
Profits of the sector, consisting of vehicles, spare parts and motorcycles, rose 48.87 per cent year-on-year to 54.47 billion yuan (US$6.89 billion) in the first three quarters of this year.
Zhou said Dongfeng Motor Corp, the parent firm, plans to spend some 3 billion
yuan (US$379 million) building new production capacity, enhancing development
capability and launching new products annually in the years leading to 2010.
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