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China car output revs up in August
By Alysha Webb
Automotive News / September 15, 2003
SHANGHAI -- China's passenger-car production in August surged 63.2 over the same month a year earlier to 169,400, the National Bureau of Statistics reported Monday.
Total output, including commercial vehicles, jumped up 48.8 percent to 367,600 units.
With the August gain, passenger-car production for the first eight months of the year is up 89.7 percent over a year earlier to 1.25 million. That is close to last year's full-year output, but the rate of increase was down from 94.8 percent in the first seven months of the year.
The agency estimates that passenger car output for the year will total 1.8 million units, compared to more than 1.2 million last year.
Sales figures for August have not yet been announced, but new-car inventories grew by 50,000 units in August, the agency reported.
Despite the worrisome gain, automakers are confidently announcing plans to add capacity here.
Volkswagen AG, General Motors, Hyundai Motor Group, Toyota Motor Co., and Ford Motor Co. all plan to substantially increase their capacity in China over the next few years, raising concerns of a margin-eroding glut emerging here. Foreign automakers and their Chinese partners have announced capacity increases that could lift annual production to about 2.28 million vehicles by 2007 from 1.26 million in 2003.
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