SAIC Motor (600104.SH) announced the production and sales bulletin on the evening of July 5. In June, the company produced a total of 382,300 vehicles, an increase of 9.94% year-on-year. In June, it sold a total of 355,500 vehicles, a year-on-year increase of 11.91%.

From January to June, the company produced a total of 2,189,200 cars, an increase of 13.63% year-on-year; from January to June, the company sold a total of 2.2326 million cars, a year-on-year increase of 11.41%.

According to the announcement, the joint venture company's production and sales volume continued to grow. Shanghai Volkswagen’s cumulative production and sales for the first six months were 642,300 units and 663,700 units, up 10.65% and 10.37% year-on-year, respectively; Shanghai General Motors’ total production and sales were 614,100 units and 671,500 units respectively, an increase of 5.48% and 9.71 year-on-year respectively. %; SAIC-GM-Wuling’s cumulative production and sales also increased by 26.13% and 15.90%, respectively.

It is precisely because of the continuous and steady sales growth of Shanghai Volkswagen and General Motors that SAIC has recently increased its plant capacity expansion rate. The problem of insufficient production capacity that has been plagued for many years will be gradually solved.

In Shanghai Volkswagen, on May 28, Shanghai Volkswagen’s Xinjiang Plant officially laid the foundation. It is expected that the plant will be put into production by the end of 2014. After the first phase of the annual production capacity of 50,000 vehicles, the Shanghai Volkswagen’s production capacity will be better laid out.

In Shanghai GM, on June 6th, the foundation laying ceremony of Shanghai General Motors Wuhan Branch was held. Wuhan is the fourth largest vehicle production base of Shanghai General Motors after Shanghai Jinqiao, Yantai Dongyue and Shenyang Beisheng. The Wuhan base will enable the layout of the nationwide production base of Shanghai GM to expand from the coast to the inland, which will be beneficial to expanding the market in the central and western regions. The company has a total investment of RMB 7 billion and an annual production capacity of 300,000 vehicles. It will be completed and put into production in 2014.

In addition, on May 30th, Shanghai GM Dongyue Base Phase III expansion project was successfully put into operation, with an additional 240,000 full-year production capacity, enabling Yantai Dongyue Base to achieve a total capacity of 480,000 complete vehicles. Thus, Shanghai General Motors plans to achieve an annual production capacity of up to One million vehicles.

SAIC Group rose 0.23% on the 5th, to close at 12.87 yuan.