Subaru, the automobile manufacturing division of Fuji Heavy Industries (FHI), has established sales joint venture (JV) with Chinese auto distributor, Pang Da Automobile Trade, to enhance sales in the country.
The $92.3m partnership, which makes Pang Da the exclusive distributor for Subaru cars in China, is aimed at strengthening Subaru's sales structure and engagement in the China sales activities.
As per the JV agreement, FHI will hold 60% stake in the sales company named as Subaru of China (SOC), while Pang Da will hold remaining 40%.
Further, SOC along with Pangda's expertise on the Chinese market, will allow focussing on sales and service performance enhancements in addition to effective implementation of sales boosting measures and strategic dealer development.
During FY2012, Subaru sold 48,000 units in the Chinese market, while the firm is aiming to achieve a sales target of 100,000 units by the end of FY2016, which is the final year of FHI's 'Motion-V' mid-term business plan.