Chery may raise annual car sales target by 50 pct

Thu May 21, 2009 5:49am BST

SHANGHAI May 21 (Reuters) - China's Chery Automobile Co, the country's biggest indigenous car maker, said on Thursday it may raise its annual vehicle sales target by 50 percent if the current market recovery is sustainable.

Chery, the maker of China's best-selling compact car QQ, sold nearly 150,000 vehicles in the first four months, equivalent to two-thirds of its annual goal of 200,000 units, its deputy general manager Ma Deji said in a statement.

Sales in April jumped 30.5 percent to a monthly record of 42,935 units, accounting for 11.45 percent of local brand passenger cars moved in the month, it said.

For the full year, Chery may strive to sell as many as 300,000 cars if the current market rebound continues, Ma said. Passenger car sales in China, the world's largest auto market, hit record levels for two straight months since March, recoverying from its low in 2008, helped by Beijing's tax incentives on small cars and rebates to rural buyers.

China home-grown automakers, mostly producing small cars, are seen as the biggest beneficiaries of the stimulus measures.

A total of 425,900 local brand sedans were sold from January to March, accounting for 30 percent of the overall car market, up from 26 percent a year earlier, official data showed.

(Reporting by Fang Yan and Jacqueline Wong)

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