Subaru cars may be produced in China in order to meet the demand

Article by Christian A., on December 15, 2010

To meet the demand in China, Fuji Heavy Industries Ltd. could start producing cars in China in the year starting April 1, 2012. The company makes Subaru-brand cars.

In a recent interview, President Ikuo Mori said the carmaker aims for annual sales of 100,000 units in China, where industry-wide demand for cars may jump to 20 million units in 2011 from 17 million vehicles in 2010. He adds an announcement will be made by the end of March 2011.

The initial plan had been to make an announcement at the end of 2010. Fuji Heavy’s sales in China surged 66 percent in 2010 through November to 52,039 units, boosted by the launching of the Impreza XV and Impreza WRX STI sedans in 2010 and strong sales of its Legacy model.

Mori says the carmaker is at a disadvantage with duties and taxes raising prices for imports. He estimates that a sales volume of at least 100,000 units is needed to offset the drop in profit from a 50-50 joint venture with a Chinese carmaker.

Fuji Heavy is the only Japanese carmaker that does not make cars in China. Researcher J.D. Power and Associates expects car sales in China to double to 34 million units by 2020. [via autonews - sub. required]

Topics: subaru, china, production

If you liked the article, share on:

Pin It

Comments

Recommended

South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Last year was probably Porsche’s best year ever in terms of sales. Their factory in Stuttgart delivered 237,778 cars in total, which represents a six percent increase compared to the...
by - March 26, 2017
Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries