China’s biggest maker of minivans, Brilliance China Automotive Holdings, said on Monday its mainland joint venture increased sales by 20% year on year in the first seven months, keeping pace with brisk economic growth, Reuters reported.
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It sold 42,000 minivans between January and July at a 51%-owned joint venture with Shenyang Jinbei Automotive, the companies told the news agency.
“The venture now controls more than 50% of the minivan market and about 70% of the seven-to-12 seat vehicle segment,” Brilliance reportedly said in a statement.
Reuters said Brilliance would cut between 8,000 yuan ($US965) and 22,500 yuan off the price of seven types of minivan – the second time in two months it has trimmed prices to fend off growing competition in the world’s fastest-growing major vehicle market.
Its minivans are now priced from 70,000 yuan to 250,000 yuan and it sold more than 65,000 minivans in 2002, the report added.
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By GlobalDataReuters noted that rivalry in China’s vehicle market has accelerated with sales surging more than 30% to over three million vehicles last year alone.
But the news agency added that Brilliance posted a 28% drop in 2002 net profit to 651 million yuan, blamed on a costly foray into the sedan market after the Hong Kong-listed company began making the Zhonghua sedan last August in a maiden attempt to tap the relatively lucrative car market, aiming to sell 30,000 units this year.
Brilliance recently struck a deal with BMW to produce the German firm’s luxury cars in China late this year, Reuters added.
