Chinese automakers take great leap in capacity
- Source: Global Times
- [13:27 January 24 2011]
- Comments
Chinese automakers plan to take a great leap forward in production capacity in the next five years after it (capacity) reached 18 million units in 2010, number one in the world.
According to automakers' new target, the total production capacity will hit 40 million units by the end of the 12th Five-Year plan (2015), five years earlier than the industry's estimation (2020.)
However, the accomplishments have been a sensitive topic for the industry as it brings with it many social and environmental problems.
In September, 2010, the auto industry had predicted at the China Automotive Industry Forum in Tianjin, that based on the growth rate of 15 percent, the total capacity of Chinese auto industry will reach 34 million units in 2015, which is in consistence with China's Ministry of Industry and Information Technology's plan of 23 to 31 million units.
SAIC Motor Co., Ltd is expected to have manufactured 6 million vehicles by 2015 and FAW Motor Company and Chang'an Motor are expected to produce 5 million units.
Beijing Automobile Works Co., Ltd and Guangzhou Automobile Industry Group Co., Ltd. have made their targets above 3 million units and other automakers such as Chery, BYD and Geely also plan to sell 2 million units during the period.
If the capacity utility of autos can stay at 80 percent and production at 40 million, the next five years will see 50 million units, meaning that China should invest to manufacture 6 million vehicles per year, which is higher than the whole year's auto capacity in Germany, of 5.5 million units.
Chen Bin, director of the department of industry of National Development and Reform Commission said the government will monitor the auto industry's capacity so as to make a realistic target for the industry, which will be around 31 million units by the end of 2015.
However, Zhang Xiaoyu, deputy director of China Machinery Industry Federation said the government should not interfere the industry's production capacity as it had tried, according to a report from yicai.com.
