BAIC Motor profit up 46% in 2011
Published on January 10, 2012 by Tycho de Feijter
Beijing Automotive Group (BAIC), the Chinese partner of Daimler AG and Hyundai Motor Co, Monday said that its profit in 2011 increased by 46.1 percent year-on-year, far beyond the average 8-percent growth for the whole industry in China.
The Beijing-based automaker’s 2011 profit stood at 16 billion yuan ($2.54 billion), said Xu Heyi, chairman of the company.
Sales revenue of the state-owned company rose by 27.4 percent to 20.1 billion yuan, Xu said.
Following a 32-percent growth in 2010, China’s auto market saw much slower growth in 2011 after the government scrapped small-car tax incentives as well as imposed purchase restrictions in Beijing.
The company sold more high-end vehicles in 2011, which contributed to the high profit increase, Xu said.
BAIC sold 1.54 million cars in 2011, up 2.7 percent from a year ago. Among them, 36.1 percent were high-end cars, more than 2010’s 26.2 percent, he said.
According to Xu, BAIC will focus on own-brand vehicles and new-energy vehicles in 2012.
Meanwhile, a new production base, with an investment of 5 billion yuan, will start operation in the third quarter of 2012, said Han Yonggui, vice president of BAIC.