SAIC expects to outpace industry sales gains in '13
SAIC Motor Corp., the Chinese partner of General Motors and Volkswagen AG, said its vehicle sales growth will outpace the industry in 2013, driven by an improving economy and buyers that shun Japanese brands.
SAIC expects sales to increase 7 to 8 percent next year, faster than the 5 to 7 percent growth for the industry, according to President Chen Hong.
"The economy may improve next year and help vehicle sales and production," said Chen, a delegate to the 18th Communist Party Congress, in an interview in Beijing. "Japanese brands have been hit by recent events and some consumers may switch to other brands. Other automakers have been building up their brands to attract buyers."
Dealerships have cut prices in China to clear inventories, sending vehicle prices lower for a sixth consecutive month in October, according to the nation's top economic planner.
Japanese automakers have reported slumps in Chinese sales in the past two months after a territorial dispute between the two countries triggered nationwide protests and unleashed a consumer backlash.
"If you strip out the influence of Japanese brands losing market share in China, SAIC might perform in line with the market," Xu Minfeng, a Shanghai-based analyst at Central China Securities Holdings, said by phone. "The company also benefits from the technology and association with its foreign partners."
SAIC's joint venture with General Motors produces vehicles for the Buick and Chevrolet brands, while a second joint venture assembles vehicles for Volkswagen. SAIC also maintains its own Roewe brand.
Separately, Miao Wei, China's minister for industry and technology, said that a plan to fund vehicle purchases in rural areas is under discussions.
Vehicle sales growth may pick up next year due to rising replacement demand and exports, Miao told reporters after a session of the Congress in Beijing.
"The economy may improve next year and help vehicle sales and production," said Chen, a delegate to the 18th Communist Party Congress, in an interview in Beijing. "Japanese brands have been hit by recent events and some consumers may switch to other brands. Other automakers have been building up their brands to attract buyers."
Dealerships have cut prices in China to clear inventories, sending vehicle prices lower for a sixth consecutive month in October, according to the nation's top economic planner.
Japanese automakers have reported slumps in Chinese sales in the past two months after a territorial dispute between the two countries triggered nationwide protests and unleashed a consumer backlash.
"If you strip out the influence of Japanese brands losing market share in China, SAIC might perform in line with the market," Xu Minfeng, a Shanghai-based analyst at Central China Securities Holdings, said by phone. "The company also benefits from the technology and association with its foreign partners."
SAIC's joint venture with General Motors produces vehicles for the Buick and Chevrolet brands, while a second joint venture assembles vehicles for Volkswagen. SAIC also maintains its own Roewe brand.
Separately, Miao Wei, China's minister for industry and technology, said that a plan to fund vehicle purchases in rural areas is under discussions.
Vehicle sales growth may pick up next year due to rising replacement demand and exports, Miao told reporters after a session of the Congress in Beijing.
