Chinese automaker aims to sell 3 million units by 2020
GUANGZHOU — Guangzhou Automobile Industry Group is targeting sales of 3 million cars by 2020, a 160% rise from 2014, the company said.
The Chinese state-owned automaker plans to ramp up production capacity at plants it has jointly built with Japanese automakers. It will also build a new plant that produces its own brand cars.
President Zeng Qinghong of the automaker told local media that it will be challenging to achieve the 3 million sales target, but that in can do it by increasing production capacity.
Guangzhou Automobile is ramping up production at its plant in Zengcheng to 120,000 units a year. The plant, in Guangzhou, Guangdong Province, is a joint venture with Honda Motor. It is expected to start operations by the end of the year.
The automaker is building a second passenger car plant in Guangdong Province that will produces 200,000 units a year under its own brand, “Trumpchi.” The new plant is expected to start operations as early as 2016.
At its joint venture with Toyota Motor, a new line that can produce 100,000 units a year is scheduled to come online sometime between the end of 2017 and 2018.
Of the 1.17 million cars Guangzhou Automobile sold in 2014, its Honda joint venture sold 480,000 and its Toyota joint venture sold 370,000. Its own brand cars sold 130,000 units.
An increase in sales of its own brand cars, as well as improving production capacity, will likely be key to achieving its 3 million sales target.