Ford’s main Chinese partner, Changan Auto, posted a one-fifth jump in first-quarter earnings on Tuesday as result of China’s vehicle boom.
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According to Reuters, Chongqing Changan Automobile Co Ltd, which also makes compact cars with Suzuki, said net profit in the January-March period rose to 391.59 million yuan ($US47.3 million) against 326.53 million a year earlier.
China’s largest minivan-maker and fourth-largest car manufacturer saw sales jump 28.41% on year to 129,407 units for the period, boosting turnover by 21% to 4.76 billion yuan, Reuters said, citing the firm’s quarterly report.
“Our company maintained a good development momentum during the reporting period,” Chanagan Auto reportedly said.
Reuters said the quarterly report gave no forecast for the company’s performance for the whole of this year, but officials told Reuters in March Changan Auto expected its sales to jump a yearly 22% in 2004.
The company aimed to sell 500,000 to 530,000 vehicles this year as it planned to partner Ford in building another production site in the eastern city of Nanjing – a three-hour drive from Shanghai, officials have told Reuters.
The news agency said analysts have also forecast a rise of about 20% in Changan Auto’s earnings this year, although the growth would be slower than the company’s 73.7% surge in 2003 when its net profit reached 1.45 billion yuan.
