Government procurement brings positive sale forecast for red flag civil car

By | May 15, 2013

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In December 2012, the CPC Central Committee Political Bureau meeting adopted the “eight regulations” requiring the graduate use of Chinese branded civil cars; during the two sessions in 2013, the requirements of purchasing the Chinese branded official vehicles was evident.

Reporter learned from the FAW that, government procurement of FAW Red Flag series totalled nearly 800 units, which will be open for public sale in May. On April 26, 2013, French President Francois Hollande arrived in Beijing and was picked up by the Red Flag L9 Car New Ambassador car which caused widespread concern and attention.

Under the authoritative survey’s estimates, China’s current official vehicles possession is about 2 million excluding hospitals, schools, state-owned enterprises and military cars, according to the update cycle of 8 years to 10 years, it is expected that the normal annual demand of new civil cars will be around 200,000 annually.

Based on the industrial analysis, Red Flag with the most profound history in term of being the “official car”, is expected to enjoy exclusive monopoly of the high-end official car market, with the strong demand of the official vehicle being reflected in the commercial vehicle market, the red flag is expected achieve the annual sales exceeded of 100,000 in the long-term.

Source: 证券时报, 财经网

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