Shanghai, Aug 28: The Chinese partners of Toyota Motor and General Motors made second-quarter profits as they sold more cars, light trucks and sport-utility vehicles in the world's fastest growing vehicle market. Tianjin Faw Xiali Automobile Co., which makes Toyota's Vios cars in China, and Shenyang Jinbei Automotive Co, makes pick-up trucks and sport-utilities with General Motors, turned to second-quarter profits from losses a year earlier.
Passenger car sales are increasing at a faster rate than truck sales, reflecting the rising wealth of the middle class in Asia's fastest-growing economy.
China's passenger car sales increased 77 per cent in the first seven months of this year to 998,900 units. Truck sales rose 6.7 per cent to 706,400 units in the same period.
Xiali, based in the northern port city of Tianjin, had a 2nd-quarter profit of 296.8 million yuan ($39 mn), compared with a loss of 375.1 mn a year earlier. Jinbei had net income of 23.4 million yuan for the period, compared with a loss of almost 30 million yuan in last year's second quarter.
Shanghai automotive, which makes Buick cars with General Motors, said first-half profit more than doubled to 960.4 million yuan.
Dongfeng Automobile, whose parent company is the Chinese partner of Peugeot Citroen and Nissan Motor, said first-half profit rose 7 per cent to 382.9 million yuan, helped by better sales of light vehicles.
General Motors, Volkswagen AG and Toyota are expanding production in China to tap a car market that's forecast to expand by a quarter this year. Bureau Report