Sales of Luxgen-brand cars are expected to double next year from this year, thanks to positive customer responses and a planned increase in the supply of Luxgen's latest models, Yulon Motor Co (裕隆) said yesterday.
The company, which unveiled its first Luxgen-brand cars four years ago after assembling and selling Nissan-branded cars in Taiwan and China for a decade, said it would focus on promoting its cars in China and Taiwan next year, while expecting sales of Luxgen-brand cars in Russia to rise gradually.
Sales of Luxgen vehicles are expected to increase to between 15,000 units and 20,000 units next year, from the 7,500 units sold this year, Hu Kai-chang (胡開昌), president of Luxgen Motor Co Ltd (納智捷), a subsidiary of Yulon, said at the launch ceremony of the Luxgen S5 Turbo.
The company is planning to launch one new Luxgen model every one to 1.5 years in the future, while continuing to release remodeled ones. As a result, Luxgen will have a complete product lineup in 2018 for every segment to allow it to compete with other brands, Yulon vice chairman Chen Kuo-rong (陳國榮) said at the ceremony.
He also expects that sales at China Motor Corp (中華汽車), which is 41.21 percent owned by Yulon, will recover next year after a poor performance this year.
China Motor, which distributes Mitsubishi sedans and its own-brand CMC commercial vehicles, sold 40,680 cars from January through Dec. 20, down 14 percent from a year ago, which Chen attributed to fewer new models and mild customer response to its new commercial vehicle, the Leadca.
Concord Securities (康和證券) yesterday raised its forecast for Yulon’s earnings per share to NT$2.36 this year from its previous estimate of NT$2.33, citing Yulon’s steady sales growth in China and Taiwan.
In a report to clients, Concord said Yulon’s plans to acquire Nissan Motor Philippines Inc and launch Luxgen-brand cars in Southeast Asia from 2015 will be another growth driver for the company.
In the first three quarters of the year, Yulon posted a net profit of NT$2.66 billion (US$88.67 million), or NT$1.82 per share, up 3.9 percent from NT$2.56 billion, or NT$1.75 per share, a year ago, according to the company’s filing to the Taiwan Stock Exchange.
Meanwhile, Chen said the company would apply for construction permits to redevelop its abandoned factory in New Taipei City (新北市) next month.
“We plan to build a new landmark in New Taipei City,” Chen said of the planned residential and commercial complex in New Taipei City’s Xindian District (新店) that will feature two towers of 40 floors each.
Yulon shares dropped 0.75 percent to NT$52.6 yesterday, underperforming the TAIEX, which was down 0.07 percent.