SAIC is readying for company sales growth to exceed the industry’s forecasts for 10-15% market growth.
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“China’s car demand should be higher next year. Previously the growth was coming from the big cities. Now the growth is coming from small and medium cities,” SAIC chairman Hu Maoyuan told Reuters on the sidelines of an APEC summit.
Hu reportedly said he expected SAIC to sell a total of 2.5m vehicles next year, up from about 2m this year, while the whole country was likely to see total sales of around 13 million next year.
SAIC is rumoured to be in talks with BMW to produce the 7 Series in China, which Hu apparently confirmed – though he reportedly added that a decision isn’t expected soon. This week, BMW announced that it is increasing investment with its established Chinese partner, Brilliance.
China’s car market has surged this year on the back of government stimulus measures which have reduced taxes on purchase for cars up to 1.6 litre engine displacement.
Car sales in China grew 76% year-on-year to 946,400 units in October, as government stimulus policies continued to boost demand.
CHINA: SAIC shares rise on BMW assembly rumours
