Yulon Nissan's ROI in China in H2 to Exceed NT$2.9 B. in H1

Taipei, Oct. 3, 2012 (CENS)--Return-on-investment in China in the second half is expected to outstrip NT$2.9 billion (US$96.7 million) posted in the first half, according to Yulon Nissan Motor Co., Ltd., a joint venture between Taiwan's Yulon Group and Japanese automaker Nissan.

Institutional investors say that starting this year, Yulon Nissan's reinvested Dongfeng-Nissan Passenger Vehicle Co., a major automaker in China, has divested its auto-parts sales business to affiliate Guangzhou Fengshen Motor Co., Ltd., whose major stake held by Yulon Nissan will realize sizable ROI in China.

Tsai Wen-rong, Yulon Nissan's president, admitted the anti-Japan sentiment in China has impacted Dongfeng Nissan's recent sales, but the least among Japanese brands. Dongfeng Nissan achieved 16.4% sales gain YoY in the first eight months amid overall new-car sales growth in China of only 4% YoY, and will easily challenge one million-plus new car sales this year, Tsai said.

Dongfeng Nissan, with a second model joining its own-brand line, expects to sell over 10,000 Venucias this year.

Yulon Nissan's ROI in China totaled about NT$900 million (US$30 million) in the first quarter, which rose to NT$1.9 billion (US$63.3 million) in the second quarter. Some institutional investors forecast Yulon Nissan's ROI in China will exceed NT$6 billion (US$200 million) this year, and post earnings of about NT$7 billion (US$233.3 million), almost double from last year's, including core business earning in Taiwan of about NT$1 billion (US$33.3 million).

Compared to counterparts' 7% to 30% declines, Yulon Nissan's market share in Taiwan dropped only 0.7 percentage points.