ERJ staff report (BC)
Taipei, Taiwan – Tire manufacturer Kenda Rubber Industrial Co is likely to see sales growth accelerate this year, thanks to China’s booming auto market, analysts have said to Kevin Chen of the Taipei Times.
The strong tire replacement demand in China and Kenda’s increasing presence in both after-market tires and spare tires will also help the company maintain stable profit margins this year, they said.
“Although the growth rate for China’s new car market has moderated from the high teens in previous years to 7.1 percent last year, the market for used cars grew at a robust 11 percent year-on-year last year to reach 4.8 million units and is expected to double to 10 million units over the next three years,” Primasia Securities Co analyst Kai Chen is reported as having said on 7 March.
Kai Chen said Kenda could use its manufacturing expertise to profit from this industry trend.
Total car sales in China rose 4.33 percent to 19.31 million units last year on an annual basis, a Chinese industry group said in January. Sales for this year are forecast to increase 7 percent to 20.65 million units, according to the China Association of Automobile Manufacturers.
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