Taipei, June 12 (CNA) Luxgen Motor Co., a subsidiary of Yulon Group, said Tuesday it will launch new models in China in the second half of this year to tap the huge mainland car market.
Chen Kuo-rong, president of Yulon Motor Co. -- Yulon Group's flagship company, said Luxgen will unveil one sport utility vehicle and one multi-purpose vehicle model in the upcoming six months, while planning to launch a sedan model by the end of this year.
Although car demand in China is weakening to some extent due to a slowing Chinese economy, auto brands like Luxgen that cater to upper-scale customers still attract strong buying interest, Chen said.
At the annual general meeting of Yulon Motor, Chen said Luxgen will continue to leave its pricing strategy unchanged, maintaining the average selling price at 230,000 Chinese yuan (NT$1.1 million), in a bid to secure a high gross margin.
Since Luxgen introduced its first SUV model to the China market in September 2011, orders on more than 18,000 units from Chinese buyers have been received by the end of April, according to Chen.
In China, Dongfeng-Yulon Motor Corp., a joint venture between Yulon Motor and Dongfeng Motor Corp. from Hangzhou in China's Zhejiang Province, is rolling out Luxgen cars for the mainland market.
Chen said production of Luxgen models on the mainland are expected to reach 45,000-50,000 units for 2012, and to boost its sales, the auto maker is planning to raise its distribution outlets to 200 from the current 70 by the end of this year.
He said production of Luxgen cars in China is expected to hit 120,000 units in 2013, adding the annual figure is expected to rise to 240,000 in the future as the company aims to launch eight to 10 new models to stir up buying.
Meanwhile, Chen said he expects the local auto market will benefit from business opportunities arising from replacement needs as about 50 percent of cars running on the streets in Taiwan are 11 years old or even older.
Chen said Yulon Motor will launch new models in the local market in the second half of this year to lure buyers.
He added auto sales in Taiwan for 2012 are expected to range between 360,000 and 370,000 units.
(By Chao Hsiao-hui and Frances Hunag)