November 21 – SAIC Motor Corporation (600104.SH) intends to increase its shares in the domestic traditional automobile and new-energy automobile markets over the next five years, reports National Businesses News, citing Hu Maoyuan, chairman of the car maker.

Assuming China's automobile sales total 30 million by 2015, SAIC has to sell at least six million units, in order to increase its market shares.

Chen Zhixin, the vice president of SAIC Motor, said Chinese car makers still trail behind leading foreign car makers in terms of core technology and chassis structures. Although it is unlikely that domestic auto makers will outpace Volkswagen, General Motor or Toyota within the next three or five years, Chen is optimistic that they will be able to pose stiff competition in the new-energy automobile market.

The group’s sales target of six million units is higher than those of five million units set by the other three large automobile groups.

SAIC Motor currently produces three million automobiles each year under the Roewe and MG brands. In addition to Roewe 750, 550, and 350, the company will roll out the Roewe 550 hybrid car in 2012, and continue optimizing its MG product mix.

SAIC Motor also plans to cooperate with General Motor to facilitate greater expansion in the international market, especially into markets like India.

SAIC Motor's English MG factory recently started operations and the company's local sales outlet has already begun presale promotions for the MG6.

During the first nine months of 2011, the company's sales totaled 281.28 billion yuan, an increase of 22.71 percent year-on-year, while net profits grew 38.69 percent to 13.29 billion yuan.

SAIC Motor has invested two million yuan into its new-energy automobile division, and intends to invest an additional six billion in next five years.

However, since new-energy vehicles are considerably more expensive than traditional passenger cars, and hybrid car purchases do not qualify for the government's 60,000-yuan subsidy for new-energy cars, high prices are still a significant obstacle to increasing sales.

Gan Pin, president of SAIC Motor's new-energy automobile division, explained the firm is not focusing solely on increasing profits at present, but instead is placing a greater emphasis on long-term strategy. Gan said that SAIC Motor plans to sell 500 units of Roewe 750 Hybrid Power in 2011, and 3,000 units in 2012.