Car audio and navigation system maker Pioneer has said its Chinese car navigation joint venture with Shanghai Automotive Industry aims for CNY1bn (US$147m) in sales in three years, targeting growing demand in the world’s httbiggest auto market.
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Loss-making electronics maker Pioneer and Shanghai Automotive, the parent company of SAIC Motor, set up the venture, Anyo Pioneer Motor Information Technology, in October, Reuters reported. SAIC Motor is China’s top car maker.
The venture, 51% owned by Shanghai Automotive and the rest by Pioneer, targets annual sales of CNY1.5bn ($220m) or more in five years, Pioneer added.
Boosting its presence in China is important for Pioneer, which is in its sixth straight year in the red, as it faces dim prospects at home due to Japan’s shrinking population.
Last year, it agreed a share sale to key customer Honda but later postponed the deal, saying it was talking to other potential financial partners
Pioneer’s home electronics operations have long been struggling to compete with larger rivals such as Sony, and its car electronics division has been hit by slumping auto sales following the global downturn last year.
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