German auto giant Volkswagen AG aims to double production in China, targeting two million cars annually by 2007, state press said Thursday, with analysts predicting the country is destined to become the world's third largest car market this year.
Volkswagen's new target represents a dramatic rise compared to its previously stated goal of building one million cars in China by 2007. It also signals foreign carmakers confidence in the blistering pace of growth in the world's hottest auto market.
Analysts forecast China will surpass Germany as the world's third largest producer of autos by the end of 2004, with 5.0 to 5.3 million vehicles rolling off mainland assembly lines.
"China's 2004 auto output is likely to hit 5.3 million units, with car output (alone) up nearly 30 percent at around 2.5 million units," said Xu Xiang, an auto analyst with Southern Securities.
In the first 11 months of last year China built four million vehicles and sold 3.91 million of them. Full-year 2003 production is expected to hit 4.4 million units compared with 3.25 million a year earlier, analysts said.