China-made Cars Highlight Shanghai Int'l Auto Show

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Last updated at: (Beijing Time) Wednesday, April 23, 2003

China-made Cars Highlight Shanghai Int'l Auto Show

China represents the world's last great car boom and the global auto giants are pulling out the stops at Auto Shanghai 2003 to showcase their achieve-ments and intentions for the fast-growing market.

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International Auto Show Opens in Shanghai

China represents the world's last great car boom and the global auto giants are pulling out the stops at Auto Shanghai 2003 to showcase their achieve-ments and intentions for the fast-growing market.

Asia's second-biggest auto show after the biennial Tokyo auto show, has attracted more than 730 companies from 23 countries and regions, including almost all the world's major auto-makers. The magnitude of the show at the New Interna-tional Expo Center covers a record 81,000 square meters of exhibition area, the largest in the country's history.

No doubt, interest in the show, which runs through Sunday, is being fueled by the booming Chinese car market.

A tour of the show reveals that domestic and foreign automakers are in a head-to-head race to attract media and viewers' attention with splashy products, extravagant promotional campaigns and bold investment plans.

While Mercedes-Benz, BMW and Audi provide the show with glamour in their luxury cars and concept vehicles, the made-in-China new cars are the real stars of the show. This year more than 30 domestically made new models are on display.

Automakers expect to sell 4 million vehicles in China this year, compared with 3.2 million in 2002, according to China Association of Automobile Manufacturers.

General Motors Corp, the world's largest automaker, said its sales of cars and sport utility vehicles in China jumped 54 percent to 84,000 units in the first quarter.

Philip Murtaugh, chair-man of GM China, said the mainland automotive industry may mark another year of surprise sales after posting 56 percent growth in 2002.

This year the company plans to manufacture five new models in China at its four plants. All are displayed at the auto show.

Shanghai GM, a 50-50 joint venture between GM and Shanghai Automotive Industry Corp, rolled out its first mid-size sedan, Buick Excelle, at a ceremony on Saturday.

SAIC-GM-Wuling Automobile Co, a US$100 million venture in eastern China's Shandong Province, will make the Wuling Sunshine minivan and a small compact car called the Chevrolet Spark.

Jinbei GM, a US$230 million venture in northern China, will produce Chevrolet Tahoe and TrailBlazer SUVs this year, Murtaugh said.

At the end of the first quarter, GM increased its share in the China market to 8 percent from 7.7 percent at the end of 2002 to become the No 2 foreign carmaker in China.

It's rival, Volkswagen AG, which has half of the market, said sales rose 86 percent in the first quarter to 162,000 units, offsetting a slowdown in the United States.

Germany's largest automaker said the strong growth has put it on track to surpass 600,000 domestic units this year.

VW will introduce at least five new models in its two joint ventures this year in the Gol, the Polo sedan, the Touran, the Golf and the Audi A4, said Bernd Leissner, the company's Asia Pacific president.

Japanese carmakers are also showcasing their ambitions.

Nissan Motor Co Ltd launched its Nissan Sunny sedan that will be made-in-China soon, kick-starting an ambitious US$1 billion expansion in the country.

Rival Honda Motor Co unveiled its Fit saloon at the show aiming at the same lower-income buyers the Sunny will go after. Analysts say the market segment will be the most intensely fought-over in the near future.

Nissan hopes to start selling the mid-sized Sunny by June in its 17 billion yuan (US$2.06 billion) venture with local partner Dongfeng Motor Corp. The plant is expected to be launched in May, said Katsumi Nakamura, the company's senior vice president and China chief.

Nakamura expects output in 2002 would total 20,000 units and rise to 40,000 next year as Nissan plans to intro-duce a "full-line of products" to China. The Sunny would also vie with Volkswagen's Bora and Toyota Motor Corp's Corolla, which will be produced in China by 2004.

Mitsubishi Motors Corp filled its pavilion with five models, including the made-in-China Pajero Sports and a concept car. The company intends to hike output to about 270,000 of its own-brand vehicles by 2007, versus about 70,000 now.

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