Automotive News - 2008 Guide to China's Auto Market - (Page 13)

GLOBAL AUTOMAKERS/JOINT VENTURES 13 Honda Motor China Investment Co. Suite 301, Beijing Fortune Building, No. 5 N. Dongsanhuan Road, Chaoyand District, Beijing 100004, P.R. China (86) 10-6590-9011, www.honda.com.cn Top executive: Hyogo Atsuyoshi, president Honda Motor Co. enjoyed an excellent 2007 in China. Sales rose 30.6 percent last year to 422,341 units. But a resurgent Toyota Motor Corp. could slow Honda’s growth in 2008. Propelling Honda’s growth was its joint venture Dongfeng Honda Automobile Co. Dongfeng Honda’s sales doubled from 2006 to 127,086 units last year, encompassing 81,339 Civic cars and 45,703 CR-V crossovers. The company started China production of the CR-V in 2004 and the Civic in 2006. It was different for another Honda joint Guangzhou Honda sold 118,024 Accords in 2007, down 4.2 percent. The Accord was the best-selling car in its segment before Toyota launched the Camry in mid-2006. In the past decade, the Accord accounted for more than half of Honda’s sales and profits in China. Fighting back, this year Honda introduced a redesigned Accord. But sales have been about 7,500 units per month, well behind the Camry’s 12,500 units or so per month. Guangzhou Honda’s Fit subcompact will face competition from the Toyota Yaris. — Kevin Huang HONDA ACCORD venture, Guangzhou Honda Automobile Co. Sales of the company’s best-selling model, the Accord sedan, were slowed by competition from the Toyota Camry. JV: Honda Automobile (China) Co. No. 363 Kai Chuang Avenue, East Section, Guangzhou Economic & Technological District, Guangzhou City, Guangdong Province 510760, P.R. China (86) 20-3228-8000 Top executive: Masaya Nagai, president 2007 2006 JV: Dongfeng Honda Automobile (Wuhan) Co. No. 283 Checheng Dongdao, Economic & Technical Development Zone Wuhan City, Hubei Province 430056, P.R. China (86) 27-8428-6000, www.dhac.com.cn Top executive: Mitsuru Ozaki, president 2007 2006 Capacity 50,000 Production 43,584 Unit sales 43,124 Models produced: Honda Jazz (for export) 50,000 24,604 24,600 Ownership: Honda Motor Co. Guangzhou Automobile Industry Group Co. Honda Motor Investment Co. Dongfeng Motor Group Co. 55% 25% 10% 10% Capacity 120,000 120,000 Production 124,976 66,004 Unit sales 127,086 63,373 Models produced: Honda Civic, CR-V, Civic Hybrid 2007 2006 Ownership: Dongfeng Motor Corp. Honda Motor Co. Honda Motor Investment Co. 50% 40% 10% JV: Guangzhou Honda Automobile Co. No. 1 Guangben Road, Huangpu District, Guangzhou City Guangdong Province 510700, P.R. China (86) 20-8227-7789, www.guangzhouhonda.com.cn Top executive: Okawara Eiji, president Capacity 360,000 360,000 Production 295,254 261,943 Unit sales 295,299 260,096 Models produced: Honda Accord, Fit, City, Odyssey Ownership: Guangzhou Automobile Industry Group Co. 50% Honda Motor Co. 40% Honda Motor Investment Co. 10% Hyundai Motor Group China Ltd. Room 701, Hyundai Motor Tower, No. 38 Xiaoyun Road, Chaoyang District, Beijing 100027, P.R. China (86) 10-8453-9666, www.hmgc.com.cn Top executive: Lee Il Jang, president Hyundai and Kia would like to forget 2007. China’s auto market grew 21.3 percent, but sales at Hyundai Motor Group China Ltd. dropped 16.5 percent. For instance, sales at the group’s Beijing Hyundai Motor Co. fell 20.3 percent from 2006 to 231,137 units, well below the target of 310,000 units. Hyundai and Kia are addressing the situation in China by keeping high sales goals and adding capacity. Beijing Hyundai will open a second plant in April, doubling capacity to 600,000 units. The sales target for the year is about a 64 percent increase, to 380,000 units. New models planned for China in 2008 are the Elantra in April, the Genesis sport luxury sedan in June, the Genesis coupe in October and the Sonata FL in November. The Genesis models will be produced in Korea. Hyundai says new models will be tailored to better suit the tastes of Chinese consumers — largely meaning more chrome highlights on the Sonata and other staple models. For 2008, Kia plans to begin exporting its new Borrego large SUV from Korea to China in June. Dongfeng Yueda Kia Automobile Co. began production at its second factory in October. — Gary Anglebrandt JV: Beijing Hyundai Motor Co. No. 18 Shuntong Road, Linhe Industry Development Area, Shunyi District Beijing 101300, P.R. China (86) 10-8949-0088, www.beijing-hyundai.com.cn Top executive: J.M. Noh, president Ownership: 2007 2006 Hyundai Motor Co. 50% Capacity 300,000 300,000 Beijing Automotive Production 231,888 290,088 Industry Holding Corp.50% Unit sales 231,137 290,011 Models produced: Hyundai Elantra, NF, Sonata, Tucson, Verna 2008 GUIDE TO CHINA’S AUTO MARKET JV: Dongfeng Yueda Kia Automobile Co. No. 18 Kaifang Road, Yancheng City, Jiangsu Province 224002, P.R. China (86) 515-8226-262, www.dyk.com.cn Top executive: H.K. Lee, president 2007 2006 Capacity 150,000 130,000 Production 105,028 114,523 Unit sales 101,427 115,000 Models produced: Kia Sportage, Accent, Carnival, Optima, Cerato, Rio Ownership: Kia Motors Dongfeng Motor Industry Investment Co. Jiangsu Yueda Co. 50% 25% 25% Automotive News • J.D. Power and Associates • Automotive Resources Asia http://www.honda.com.cn http://www.honda.com.cn http://www.dhac.com.cn http://www.guangzhouhonda.com.cn http://www.hmgc.com.cn http://www.hmgc.com.cn http://www.dyk.com.cn http://www.beijing-hyundai.com.cn

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