China’s second biggest carmaker, FAW Group, plans to sell over 2.3m vehicles this year, up 18.3% year on year, the Xinhua news agency said, citing a company executive.
Cuts in purchase tax and subsidies on small car purchases helped FAW’s sales rise 27% in 2009 to 1.95m vehicles as revenue rose 23% to CNY260.8bn (US$38.2bn).
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China’s overall vehicle market rose 46%, Reuters noted.
FAW Group deputy manager Jin Yi told a forum the government incentives, including subsidies for the purchase of small vehicles in rural areas and of new-energy cars in pilot cities, and also old-for-new subsidies, would continue to boost sales in 2010.
FAW expects sales revenue to rise 11% to CNY290bn, he said.
FAW local JV partners include Volkswagen.
