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FAW ranks China's most profitable carmaker in 2020

chinadaily.com.cn | Updated: 2021-02-01 17:20
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Hongqi, a car brand under FAW Group, sells more than 200,000 vehicles in 2020. [Photo by Zhang Dandan/China Daily]

China's FAW Group, parent of the Hongqi brand, saw its profit rise 6 percent year-on-year to 46.7 billion yuan ($7.2 billion) in 2020, becoming the most profitable Chinese carmaker last year.

Revenue of the carmaker, which is partner of brands including Audi and Volkswagen, totaled 696 billion yuan in the same year, up 12.7 percent year-on-year, according to the Economic Observer newspaper.

It sold 3.7 million vehicles last year, up 7.1 percent from 2019. Of them, sales of Hongqi-branded vehicles totaled 200,000, up 100 percent from 2019.

SAIC Motor, which sold 5.6 million vehicles in 2020, was the country's largest carmaker by sales. But its estimated profit stood at around 20 billion yuan, less than half of FAW's profit.

Analysts said one of the reasons is that FAW is producing more profitable vehicles including those bearing the Audi marque.

In its joint venture with Audi, FAW holds a 60 percent stake. The joint venture also produces Volkswagen vehicles, which are popular in China, the world's largest car market.

FAW said its sales goal in 2021 is 4 million vehicles, which are expected to generate revenue of 720 billion yuan, up 3.4 percent year-on-year. Its profit in the year will reach 47.7 billion yuan, up 2 percent year-on-year.

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