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Changan Auto profit soars after Mazda tie-up

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Kandy Wong

Chongqing Changan Automobile, which in February added Japan's Mazda Motor Corp to its car-making alliance with Ford Motor, said profit more than doubled in the first nine months on strong sales and earnings from the partnership.

Profit surged 146 per cent to 533.3 million yuan or 33 fen a share in the nine months ended September from 216.5 million yuan or 13 fen a share a year earlier.

Sales rose 36 per cent to 18.2 billion yuan from 13.4 billion yuan, according to a statement filed with the Shenzhen Stock Exchange.

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Changan Auto, which is struggling to maintain growth at its commercial vehicle business, signed up with Mazda in a move to strengthen assets and boost passenger car sales before selling shares overseas.

No date for the sale and a proposed Hong Kong listing has been disclosed.

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Changan Ford Mazda Automobile, half-owned by Changan Auto, more than doubled its sales in the first nine months to 87,930 vehicles from a year earlier, Ford said on October 10. The United States firm is Mazda's biggest shareholder.

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