Great Wall says stronger yuan hurts car exports
Great Wall Motor Co.'s general manager, a delegate to China's legislature, said the government should give financial support to auto exporters to offset a rising yuan that is making them less competitive.
The government should lower taxes, and Chinese automakers should be included in the cross-border yuan settlement program that allows for trade using Chinese currency, Wang Fengying said at a briefing in Beijing.
"Yuan appreciation has been undermining export profit margins," said Wang, a member of the National People's Congress. "If the yuan keeps appreciating, it will become one of the obstacles for Chinese automakers' exports."
China's yuan has appreciated 3.9 percent since the central bank abandoned a fixed exchange rate to the dollar on June 19, lowering the costs of imported raw materials and making Chinese exports less competitive.
The People's Congress begins its annual meeting Friday, and Wang said she will introduce her proposal after then.
Great Wall, maker of China's popular Hover SUV, is the country's biggest vehicle exporter with 13 percent of total sales shipped overseas last year.
The Baoding, China-based company aims to double that proportion to 30 percent by 2015, Wang said.
Great Wall, which also sells sedans and pickups, plans to have 24 overseas plants by 2015, compared with its current 12, the company said. The company's facilities are CKD plants, which assemble vehicles from kits exported from China.
Great Wall's profits last year likely rose more than 50 percent because of higher automobile sales, the company said on Feb. 14.