WUHAN – Dongfeng Motor Group Co. (0489.HK) said it expects its car sales to nearly double to 3.6 million units in 2015 from 2010 amid China’s rising domestic demand for automobiles, and the Chinese automaker is seeking acquisition opportunities to expand overseas.
Chairman Xu Ping told a news conference the company’s 2011 car sales target remains unchanged at 2.16 million units, even after analysts said they were concerned about possible production disruptions after the devastating earthquake in northern Japan, and even as the Beijing government’s measures to limit the issuance of new car license plates early this year could slow car sales. The company sold 1.95 million vehicles in 2010.
He added the company and its joint venture with Nissan Motor Co. are both unaffected by the earthquake in Japan so far. “If there’s any impact, it would be very minimal. But in the long run, we’d continue to monitor the situation in Japan and adjust our production plans accordingly,” Xu said, without elaborating.
Dongfeng Motor is the main listed unit of state-owned Dongfeng Motor Co., China’s third-largest automaker by sales after SAIC Motor and FAW Group. Apart from having joint venture with Nissan Motor, it also has joint ventures with Honda Motor and PSA.
Dongfeng Motor’s 2010-2015 capital expenditure is expected to total ¥75.4 billion ($11.09 billion), as the Chinese carmaker plans to boost its production capacity to 3.64 million units by 2015 from 1.72 million in 2010.