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China the biggest recipient of auto investment (2)

By Wang Ying (China Daily)

08:18, March 15, 2013

Almost all of the world's major automotive assemblers made investment announcements in China, according to the report.

Ford made two new-capacity announcements in China in 2012, and the 500,000 additional units of capacity a year will cost $1.36 billion.

Honda is considering a new plant in Wuhan of Hubei province with its joint venture partner, Dongfeng Motor Group. And Nissan made three new capacity announcements in 2012 with a total value of $1.46 billion.

South Korea's Kia Motors announced a new joint venture assembly plant for Jiangsu province with Dongfeng Motor Corp and Jiangsu Yueda Investment Co. The plant is expected to open in 2014 with a capacity of 300,000 vehicles.

Daimler AG made two new announcements of two plants near Beijing.

Jaguar Land Rover, owned by Tata Motors Ltd of India, announced a $1 billion joint venture plant with Chery Automobile Co for a new plant in Changshu of Jiangsu province. The plant will have an assembly capacity of 130,000 units and will assemble both Jaguar and Land Rover vehicles.

However, some analysts expressed concern about the huge influx of investment. China's vehicle inventory alert index reached 57.17 percent in February, an increase of 11.91 percent month-on-month, according to figures from China Automobile Dealers Association.


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