Chinese automakers have set higher sales targets for 2010, driven by robust sales in January, to continue the growth momentum of late 2009, China Times reported. China's auto sales surged 124% year on year in January to a monthly record of 1.66 million vehicles, extending last year's strong gains and bucking forecasts for weaker growth. Passenger vehicle sales exceeded 1.3 million units in January, up 110%. Some analysts say there are signs of emerging overcapacity issues. The Chinese government will not approve auto capacity expansion project of its automakers unless they first agree to take over a domestic rival.

China's passenger vehicle sales hit a new high in January to exceed 1.3 million units, Xinhua News reported yesterday, citing official data. Last month, passenger vehicle sales surged 110% year on year (and 18.11% month on month) to 1.32 million units while output increased 130% y/y (and 4.33% m/m) to 1.24 million units, said the China Association of Automobile Manufacturers (CAAM).

One of the problems that has traditionally beset domestic Chinese auto manufacturers is a perception of low quality and low price among Chinese car buyers. As a result, beyond the lowest entry price point, most Chinese auto buyers opt for foreign brands or, at the very least, joint ventures like Shanghai Volkswagen or Chang'an Ford. This "domestic prejudice" is especially apparent at the high-end, where Mercedes-Benz , BMW and Bentley (the favored brand of China's wealthy elite last year, according to the Hurun Report's "Best of the Best" list) reign supreme - according to Jing Daily.

China's largest indigenous automaker Chery Auto plans to outsell its home-grown rival BYD Auto this year, the China Business News (CBN) reported Monday, citing an unnamed source. Ma Deji, Chery's deputy general manager, said its company has set the 2010 sales target at 700,000 units. But a company insider told the CBN that Chery will not loose ground to the Shenzhen-based BYD Auto, which has planned to sell 800,000 units this year.

Amid the financial crisis, automobile multinationals encountered setbacks in Europe and US with no exception. No one expected that the burgeoning Chinese region had become their most lucrative market - according to SinoCast. Although the taxes on buying vehicles were upgraded in early 2010, the sales boom in China will not be greatly affected in the year, pointed out experts. More optimistic prediction is that China's auto sales will top 15 million vehicles in the period.

The sales of passenger vehicles in China reached 10,3 mln units, showing a 59 percent growth, in 2009. This result wasn’t expected even by the most optimistic analysts in early last year. During the global economical crisis, particularly visible in the automotive industry, China took a first place in global ranking overtaking the longtime leader the United States. Total sales of all kind vehicles in China exceeded 13.5 million units (+44%), while in the U.S. was sold 10.4 million vehicles (-21%), the less number from 27 years.

Chinese automakers launched a record 221 new passenger vehicle models last year, Xinhua News reported today, citing industry information. A majority of them are upgraded models; only less than 50 are all-new one. New homegrown brand models numbered 120 in 2009, over half the total, according to the latest statistics from the China Association of Automobile Manufacturers (CAAM).

Some shopping centre in China has opened a car park that offers women drivers bigger-than-normal parking spaces to accommodate what it sees as their special needs. The spots are three feet wider than normal with lines painted in a pink and light purple color scheme. To improve visibility, it will feature three lights in every parking space.

China's first fireproof bus began trial run Wednesday in Chengdu, capital of southwest China's Sichuan province. The fireproof vehicle is equipped with nine shower nozzles on the roof, which will sprinkle extinguishing agent after the driver presses a button on his left, said Song Xiaoyong, director of the fire prevention division of the provincial fire-control department.

Saab, the Swedish car manufacturer owned by General Motors (GM), is understood to have sold two unused production lines to Beijing Automotive Industry Holding Corp (BAIC). The deal with BAIC involves Saab selling the production tools to make 9-5 and 9-3 models, which it no longer produces. BAIC, which lacks its own brand name, would manufacture similar cars in China, probably under a different name.