Chang'an takes over five AVIC units
- Source: Global Times
- [08:02 November 11 2009]
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The fourth largest Chinese automaker by sales, Chang'an sold 1.16 million vehicles in the first 10 months of this year, trailing Dongfeng Motors, First Automotive Works and Shanghai Automotive.
Chang'an, whose 21 auto plants are located in nine provinces, plans to produce 3 million units over the next five years, and 5 million units in the coming 10 years, the company's president Xu Liuping told a group of reporters Tuesday.
Jia Xinguang, chief analyst with the Chinese National Automotive Industry Consulting and Development, predicted on his blog that Chang'an's capacity would probably exceed 2 million units in 201o.
Other firms are also undergoing massive restructuring in accordance with the country's blueprint, which was drawn up to reduce the number of major automakers from 14 to 10 through mergers and acquisitions.
Encouraged by the government, Guangzhou Automobile Group acquired a 29 percent stake in Hunan Changfeng Motors in May, becoming Changfeng's biggest shareholder.
"After the AVIC-Chang'an deal, 10 major automakers now account for nearly 90 percent of production and sales of the industry. But a capacity of two million is still far from the 3 million unit threshold to make it into the world top 10," Jia said in an article published on Beijing Business Daily.
