Chery Automobile Co has sold a 20% stake in its business to private equity groups, according to reports today.
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The Wall Street Journal said that the Chinese automotive group had offloaded the stake for around 2 billion yuan (US$293m) to investors that included Bohai Industrial Investment Fund Management Co and CDH Investments.
According to the Journal, the funds will be used for organic development and not for pursuing overseas acquisitions.
China’s largest automaker said in May that it increase its vehicle sales targets by 50%, if the market continues to recover.
A statement from the company said that Chery sold close to 150,000 vehicles in the first four months of the year, around two-thirds of its annual goal of 200,000 units.
If the current recovery continues, Chery may increase its full year sales target to 300,000 cars.
Sales of passenger vehicles in China reportedly rose to a record 830,000 units in April as the market continued to benefit from government stimulus measures designed to boost car sales.
The China Association of Automobile Manufacturers (CAAM) said that passenger car sales rose 37% over last year to a record 830,000 units.
