The China Daily newspaper reports that Dongfeng Motor Corp, one of China’s key state-owned carmakers has teamed up with a privately-owned motorcycle company to venture into the sizeable Chinese mini-van market.
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Dongfeng and the Yu’an Group, based in Southwest China’s Chongqing Municipality, have formed a joint venture in Shiyan in central Hubei Province to produce mini vans.
The venture, in which both Dongfeng and Yu’an have a 50 per cent stake, launched the first Dongfeng brand mini van on Sunday. The van carries the name “Xiaokang”, which, literally translated, means moderately well-off.
The joint venture plans to produce 20,000 Xiaokang mini-vans this year, said Li Zhenhua, the venture’s chairman.
The venture’s annual output will increase to 150,000 units by 2008, Li said.
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By GlobalData
The 1.0 and 1.3-litre Italian-designed Xiaokang mini vans retail for between 35,000 yuan (US$4,227) and 45,000 yuan (US$5,435).
“Mini vans sell well in China, especially in small and medium-sized cities and vast rural areas, as a result of regional economic development imbalances,” an analyst told the newspaper.
Industry statistics showed domestic mini van sales grew 10.5 per cent to 920,000 units last year, accounting for some 17 per cent of China’s total vehicle market, the report added.
