HANGZHOU, Zhejiang - Geely Holding Group Co., Ltd. signed an agreement on February 26 to acquire a local special-purpose vehicle maker, Zhongyu Automobile Co., Ltd., as part of its portfolio expansion, according to a report in

China's largest automaker SAIC Motor said its vehicle sales in February rose 45% from a year earlier to 248,000 vehicles, compared with 307,384 in January when sales were up 90%, media reported.

Automotive sales were slightly down in February 2010 due to the long holidays and the slightly shorter month. The BYD F3 has come in top of the ranks yet again. The F3 does seem to have pulled quite a lead over the nearest competition, but this is probably due to BYD's relative fame for making good quality cheap cars. BYD is aiming to produce 800,000 cars this year and does have lofty plans to become the world's biggest automaker by 2025. Both VW and GM are fighting it out in China for dominance, VW seems intent on running different generations of cars side by side whilst GM is relying on its clever branding strategy that pushes the Chevrolet brand towards younger buyers and the Buick brand towards more mature buyers.

During this year's parliament session, several members who are senior automotive executives submitted motions for the State Council to consider adopting more favorable policies in support for manufacturing and use of micro and small vehicles.

SHENYANG, Liaoning - Liu Zhigang, 48, former president of Brilliance-Jinbei Automobile Co., Ltd. (Brilliance-Jinbei) and general manager of Brilliance Auto Sales Co., Ltd. (Brilliance Sales), resigned his post in December 2009. Shen Yi, former vice general manager of Brilliance-Jinbei Sales Co., has been appointed to take Liu's place as general manager of Brilliance Sales on December 16, 2009,

General Motors officially gave up selling its Hummer brand to China's little-known Tengzhong Heavy Industrial Machinery Co., Ltd. (Tengzhong) late last month. The once sensational deal came to an abrupt end after nine months without much explanation.

Inspired by the explosive growth last year, an increasing number of Chinese independent automakers are maneuvering for public listing in 2010, while at the same time setting ambitious goals for sales and capacity expansions.

China's economy saw a V-shaped return during the global financial crisis which has seriously battered most of the world's major automobile markets.

The Ministry of Industry and Information Technology (MIIT) issued the Regulations on Light Vehicle Fuel Consumption Labeling

During this year's parliament session, several members who are senior automotive executives submitted motions for the State Council to consider adopting more favorable policies in support for manufacturing and use of micro and small vehicles.

Daimler AG and BYD signed a Memorandum of Understanding in Stuttgart in early March to establish a comprehensive technology partnership for the development of electric vehicles for the China market.

As Toyota is recalling 8.5 million cars worldwide due to the dangerous issue of unintended acceleration, Chinese carmakers, consumers and the media are asking a simple question: what happened to a reputable carmaker that has just taken the No. 1 position in sales and to a global brand that is a synonym of quality and dependability?

China has become the world's largest new vehicle manufacturing country with total sales surpassing 13.6 million in 2009. The Year of the Bull has rendered China's automobile market unprecedentedly bullish.

- by Feng Jugao

Rough and bumpy road for low-speed vehicles

The low-speed vehicle (LSV) used to be called the farm vehicle.

BEIJING ¨C China?ˉs farm vehicle market continued its stable growth in the first half of this year. Production and sales reached 1,088,992 and 1,086,247 units respectively, an average of 8.1 percent increase compared to last year, according to the latest statistics from the Farm Vehicle Sub-Association of the China Agricultural Machinery Association.

Continued decline

China’s farm vehicle sector has experienced another year of continued decline. Output and sales were 1,899,834 and 1,895,116 units, respectively, in 2005, down 9.15 and 9.25 percent compared with those of 2004, according to the latest statistics from the Farm Vehicle Association. However, this rate fell back to single digits, compared with a more than 20 percent decline in 2004.

China’s farm vehicle manufacturers are moving into light and medium truck production, according to the latest statistics published by CBU. While most medium truck manufacturers have registered a decline in output in the first nine months of last year, one manufacturer, Wangpai Automobile, registered a 77.03 percent increase year on year in their medium truck output. Wangpai is one of the country’s leading farm truck manufacturers. Another farm truck maker, Yinhe Automobile, is now the seventh largest medium truck manufacturer in

China is now facing enormous pressure to get the ball rolling on energy-saving and emission reduction initiatives. This comes along with soaring fuel prices in the international market. Thankfully, the young electric vehicle (EV) industry is expected to experience rapid development in 2010, a year many are referring to as the first year of the EV era in China.

China's auto industry will be spared from "overcapacity" status for a longer period than its co-members in the BRIC quartet - Brazil, India and Russia.

DETROIT - Wang Chuanfu, chairman of BYD, said his company would be launching the company's pure electric vehicle, the e6, in the 4

BEIJING - Beijing Automotive Industry (Holding) Corp. (BAIC), China's fifth largest automaker by sales volume, announced on December 14 that it had closed a deal with Saab Automobile AB to buy some of the Swedish automaker's production equipment and intellectual property related to three whole vehicle platforms and two turbo-charged engines and powertrains.

According to the latest statistics from the customs, China's import of large-displacement automobiles, especially those powered by 4.0 liter and larger engines, declined dramatically in the past couple of months.

The feature story by Li Chao, noted automotive writer, is interesting reading in understanding the strategy of BYD Automobile.

When China hosted the 29th International Summer Olympics Games last month, Beijing tried its best in presenting to the world a friendly, clean, efficient and green metropolis to ensure a most successful event in the history of the Olympics.

Although total sales of automobiles in the first half of 2008 grew by 18.5 percent compared to the same period of last year, the growth rate was about 5 percentage points lower than last year.

Zoomlion Heavy Industry Science & Technology Development Co., Ltd. (Zoomlion) and Daimler-Benz signed a purchase order of special chassis for construction machinery on December 3. Zoomlion is a public-lised large construction equipment manufacturing group based in Changsha, Hunan Province.

- by Yang Zaishun

Shanzhai literally means "mountain stronghold" in Chinese and it implies anti-authority, anti-mainstream and anti-control. Shanzhai is currently widely used in Chinese as a noun, adjective or verb, meaning "clone" or "copy." After all, China has cloned everything from overseas, including the constitutional civilization, political and legal systems, buildings, clothing, cell phones, TVs, laptop computers, and most recently, automobiles as well. 

NC² Global LLC, a newly established global commercial truck joint venture between Navistar and Caterpillar, signed a framework agreement with Jianghuai Automobile Co., Ltd. (JAC) in late September to potentially establish a joint venture in China which would develop, manufacture and sell trucks and truck parts primarily in China and certain export markets, said a press release from Navistar.

- by Yang Zaishun

On July 15 Sinotruk (Hong Kong) Ltd. and MAN SE, a German truck and engineering company, signed a series of agreements in Hong Kong, signaling the start of long-term cooperation between the two.

PARIS - Renault is not ready to enter the Chinese market and is not preparing a factory, said Carlos Ghosn, CEO of Renault SA and Nissan Motor Co., at the annual financial press conference of the French automaker.

FUZHOU, Fujian - Southeast (Fujian) Motor Co., Ltd. (Southeast Motor) is recalling 734 Mitsubishi Lancer EXs and 264 Galant sedans to fix defective bolts and automatic transmission fuel pipes.

WUHAN, Hubei - Dongfeng-Honda Automobile Co., Ltd. plans to build a second plant in Wuhan to meet surging demand in the world's largest auto market, the company announced on January 20.

CHANGCHUN, Jilin - FAW Mazda Motor Sales Co., (FMMS) plans to sell 150,000 cars in the Chinese market this year, according to a company statement published on its official website on January 26.

In a recent interview with auto.sohu.com, Yin Tongyue, chairman and CEO of Chery Automobile Co., China's leading homegrown carmaker, talks about brand building and his attitude towards oversea acquisition. Following are excerpts of the interview. - Editor

Over the past 15 years since China Business Update was founded to cover and report on China's emerging automobile market, I have had numerous meetings and interviews with Mr. Miao Wei, long-term government official as well as top automotive executive. Before Miao was appointed

DETROIT - China is a major focus and the most important country for Magna International's growth from an emerging market standpoint, according to co-CEO Don Walker.

Beijing Automotive Industry (Holding) Corp. (BAIC) announced on December 14 its acquisition of Saab's assets, which included certain production equipment and intellectual property. On January 22, BAIC's president Wang Dazong disclosed some details about the deal in an interview with China Automotive News (CAN). Following are highlights of the interview. - Editor

DETROIT - General Motors Co. announced on February 24 that its sale of the Hummer brand to Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd. (Tengzhong) failed as the Chinese "was unable to complete the acquisition" before the agreed deadline. As a result, GM will begin the orderly wind-down of the Hummer operations.

A top government think tank has forecasted that China's economic growth will hit at least 10 percent in 2010, after the world's major developing country has regained momentum to the fast-track growth.

BEIJING - Beiqi-Foton Automobile Co., Ltd., China's largest commercial vehicle manufacturer, lately held a ground-breaking ceremony for its new multi-purpose vehicle plant in Miyun District, Beijing, according to

BEIJING - A Goldman Sachs Group-managed private equity fund is pouring about $250 million in Geely Holding Group's automobile arm, Geely Automobile Holdings Ltd. to support the automaker'sambitious expansions,

"The Ministry of Finance has begun an investigation into the feasibility of levying an environmental tax on automobiles," said Zhang Yanyou, deputy director of the Beijing economic planning agency, at a session of the Beijing Municipal People's Congress, according to local news media reports in late January.

June 30 of this year is the deadline for the auto trade-in program, which allows for the replacement of old, out-dated cars with new ones, according to recent local news reports quoting Chang Xiaocun, director of market system development at the Ministry of Commerce. Chang pointed out that national subsidies will be substantially increased to unprecedented levels this year.

China's auto market is nearing a second wave of increased popularity, and car ownership is expected to grow from 20 to 100 units per 1,000 people, said industry experts. This time, financial policies will play a major role in the surge. 

China is poised to make purchases of domestic branded cars account for over 50 percent of government procurement of automobiles, with relevant regulations on standards and prices under discussion, according to a news report in

CHONGQING - China South Industry Group Corp. (CSIG) is planning to merge its three motorcycle companies, China Jialing Group (Jialing), Jianshe Motorcycle Co., Ltd. (Jianshe) and Qingqi Motorcycle Co., Ltd. (Qingqi), into a new mega motorcycle group in Chongqing, according to a recently report in 

"Two automakers, which have had different histories and traveled along different paths, have had great synergy. This is the result of a cultural union," says Kimiyasu Nakamura, president of Dongfeng Motor Co., Ltd. (DFL), on the six years of joint venturing between Nissan Motor Co. and Dongfeng Motor Corp. (Dongfeng).

- by Guo Bo

Zuo Yan'an joined the Jianghuai Automobile Works as a technician 30 years ago. It has since morphed into Jianghuai Automobile Co. or JAC, and Zuo at 60 has been company chairman for the past two decades.

- by Wen Jing

In the government's Automotive Industry Readjustment and Revitalization Plan, Chang'an Automobile Group Corp. is for the first time rated as one of the four top-tier automakers in the country. But Xu Liuping, its chairman, is sober-minded enough to say that this is "just the beginning of a new long march."

Swedish Autoliv, the global seatbelt and airbag maker, announced in late January that it would acquire Occupant Protection Systems (OPS) operations in South Korea and China from U.S. parts maker Delphi for an undisclosed sum, following a previous agreement to purchase similar assets in North America and Europe.

Toyota's February tsunami, as one Detroit 3 executive called it, is a lesson for prospective Chinese carmakers planning to enter the U.S. market.

GROSSE POINTE, MI - The midsize sport sedan market will be expanded in China in coming years with new entries of export from Suzuki, Hyundai and Volkswagen.

Behr America, a specialist for automotive air conditioning and engine cooling systems, has formed a battery cooling group at its headquarters in Troy, Michigan, to meet the increasing demand for thermal-management technology in the fast-growing hybrid and electric vehicle market, according to a company news release.

Warren Buffett's Berkshire Hathaway Inc has realized a $1.02 billion paper profit on a 10-month-old investment in BYD Co after shares in the Chinese car and battery maker quintupled.

In the first half of 2009, China's auto sales rose 17.69 percent to hit the 6 million mark, posting record 6.10 million units, according to statistics released by China Association of Automobile Manufacturers (CAAM). That has made China replace the U.S. to become the world's largest auto market in the first half of 2009.

The 13^th Shanghai International Automobile Industry Exhibition, or Auto Shanghai 2009, stands out to be the world's largest auto show this year in participation and scale. Over 600,000 visitors and 7,200 media reporters visited the event from April 20 to 28.

SHANGHAI - Great Wall Motor Co., Ltd. announced at Auto Shanghai 2009 that it will introduce new sub-brands for different types of Great Wall Motor's vehicles. The Hover will be the parent brand name for its SUVs while pickups will be named under "Wingle."

BEIJING - Despite the short month and the Chinese New Year holiday, China's auto sales in February, thanks in part to strong performance of independent brands and continued government incentives, still grew 46.25 percent year-on-year to more than 1.21 million units, according to data released by the China Association of Automobile Manufacturers (CAAM) on March 9.

BEIJING - China's automobile market kept on rolling last month, as sales hit an all time record of 1.66 million units, up 124 percent from the same month a year ago, according to the latest data released by the China Association of Automobile Manufacturers (CAAM). Production jumped 143 percent to 1.61 million units.

- by Raymond Chen

LanSion, a third-party research firm, has recently published the 2009 China Car Sales Satisfaction Indices, results of a survey that covers new vehicles sold by 46 automakers (including imports).

BEIJING - China sold a total of 1.09 million domestically made automobiles in July, up 64 percent compared with the same period of last year, China Association of Automobile Manufacturers (CAAM) said on August 7.