Guangzhou exports 4 billion cars in 2005

25 January 2006

Guangzhou, China, 25 Jan – The Honda (China) joint venture in 2005 exported 9,698 vehicles to Europe at a unit price of US$14,000 making Guangzhou the Chinese city to have exported the most cars, according to local press reports Wednesday.

The figures show that the city exported more cars than any other and twice the national average in total value.

Although the world’s attention has mainly been focused on manufacturers such as Geely, which is headquartered in Zhejiang, which said in Detroit that it would place cars in the US market at a retail price of less than US$10,000 each, the reality is that most exported vehicles are basic trucks, cars with small engines and even golf buggies.

Honda manages to compete on international markets although the company only began exporting in June 2005.

The Honda (China) factory manufactures the Honda Jazz 1.2 and 1.4 liter models for sale to Europe, in a joint venture 65 percent owned by the Japanese company, 25 percent by China’s Guangzhou Auto and 10 percent by Dongfeng Motor.

The factory’s production objective is of 25,000 vehicles this year. Honda also makes cars in China for the domestic market in another factory in Guangzhou with a capacity to produce 360,000 vehicles per year.

In 2005, China exported 1.08 million vehicles to the value of US$1.9 billion. Around 65 percent of this total was accounted for by vehicles with engines of less than a 1 liter capacity and around a third were golf buggies and snowmobiles. (macauhub)