Recently, phase II of LIFAN’s No.1 factory has been put into production, which increased sedan capacity from 100,000 units to 180,000 units. Meanwhile, its No.2 factory with designed capacity of 150,000 units started construction and was expected to go into operation in 2013. By then, sedan capacity of LIFAN will exceed 300,000 units.

Since 2007, sales volume of LIFAN Group increased steadily. During January to November in 2011, sales volume of passenger car accumulated to 104,368 units; therefore, the total capacity of 100,000 units has restricted further development of LIFAN. The capacity expansion of No.1 factory will effectively ease the capacity bottleneck of LIFAN. However, the overseas market may experience downturn in 2012 and development of economy car in China is confronted with difficulty, all of which presents great risk for large scale capacity expansion.