China's 'auto city' plans to raise capacity to 3 mln units in 2015

10:32, March 13, 2010      

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China's "auto city" Changchun plans to more than double vehicle production capacity to 3 million units in 2015, a local official said Friday.

Changchun, capital of northeastern Jilin province, churned out 1.22 million vehicles last year. With more than 800,000 units made by China Faw Group Corp., the country's second-largest carmaker headquartered in Changchun where the auto industry accounts for 70 percent of the city's industrial output.

At an industry conference, Zhou Yongze, deputy head of the provincial Industry and Information Technology Bureau, said the government will support China Faw Group to expand capacity and set up joint ventures to meet the target.

Currently several plants or expansion projects with a total capacity of 800,000 units are under construction.

Zhou added that the government will unveil preferential policies to boost research and development on new energy vehicles as the nation seeks to transform the development pattern of economy.

Established in 1953, China Faw Group produced China's first domestic model of truck, under the Jiefang (Liberation) brand in 1956 and later produced Hongqi (Red Flag) bulletproof sedans, which have been used by state leaders.

China, the only bright spot as the world auto industry struggles with the economic downturn, overtook the U.S. as the world's largest auto market last year thanks to rural subsidies and tax cuts on purchases of smaller vehicles.

The China Association of Automobile Manufacturers announced on Jan. 11 that new auto sales rose 46.15 percent year on year to 13.64 million units in 2009.

Source: Xinhua
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