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Global Auto Makers Report Soaring China Sales

Global auto makers reported soaring first-quarter sales in China as they stepped on the accelerator to jostle for position in the world's fastest growing vehicle market.

The sales growth of almost all the big global names far outpaced the industry average in China; passenger car sales rose 20.4 percent to 1.85 million in the first three months and 24 percent in March, the biggest monthly rise since August.

In contrast, their sales experienced double-digit declines in the United States last month as demand fell and consumers held back amid concerns about gas prices, the subprime mortgage crisis and tightening credit.

US auto maker Ford Motor Co. announced on Wednesday that its combined sales in China -- including the Ford, Volvo, Mazda, Jaguar and Land Rover brands -- surged 47 percent in the first quarter to 90,791 vehicles.

The results were mainly buoyed by its venture with Changan Automotive Group, China's fourth largest automaker, and Japan's Mazda Motor Corp. The Chinese venture boosted first-quarter sales by 58 percent to 61,789 vehicles.

Ford has recorded fast growth in China for four consecutive years and the first-quarter results were prognostic of a bumper harvest for 2008, Ford China CEO Robert Graziano said.

The auto giant would keep a close watch on the global and Chinese economy, he said. "We will accelerate ours steps in introducing new products and technologies to further expand the business in China."

Europe's largest auto maker, Volkswagen AG, reported a 32.5-percent jump in China sales in the first quarter to 268,200 vehicles. Its two Chinese ventures -- FAW Volkswagen and Shanghai Volkswagen -- topped the domestic sales rankings.

Sales of Audi, Volkswagen's high-end line, climbed 25 percent to 30,188, while Bentley sales soared 137.8 percent to 126 units.

Volkswagen China CEO Winfried Vahland said the German auto giant would see its China sales break the 1 million unit mark this year and maintain its position as an industry leader.

Volkswagen moved 910,500 vehicles in China last year, up 28 percent. In 1985, it became the first multinational auto maker to produce in China when Shanghai Volkswagen was established.

German premium car maker BMW AG, whose brands include BMW and Mini, saw first-quarter sales in China surge 43.2 percent to 14,574 units, compared with a 5.7-percent rise globally and a 9.2-percent decline in the United States.

BMW's result included a 20.4 percent rise in sales by its Chinese venture with Brilliance Automotive Co. to 8,035 locally-made 3 Series and 5 Series sedans. Sales of imported BMW sedans, including the much-more expensive 7 Series flagship cars, jumped 83.9 percent.

Mercedes-Benz also reported strong growth, with sales up 40 percent in China. The fast economic growth in the country had resulted in a growing rank of nouveau riche and made luxury cars, such as Audi, BMW and Mercedes-Benz, affordable to more people.

Foreign brands held a 74.2 percent share of the Chinese sedan market in the first three months, according to data from the semi-official China Association of Automobile Manufacturers.

Japanese brands took 29 percent, German brands 21.3 percent and American brands 13 percent.

Vehicle production and sales both surged more than 20 percent to a record 8.8 million units in China last year, in contrast to weakening sales worldwide. The country produced 6.38 million passenger cars and sold 6.3 million units last year.

(Xinhua News Agency April 10, 2008)


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