Xinyi Glass Holdings, the only Hong Kong-listed glassmaker in the Chinese mainland to report profit growth in 2006, said autoglass would continue to drive earnings despite its expansion into other products. Autoglass, which accounts for 64% of Xinyi's overall business, would still comprise over 50% sales, chairman Gerry Tung said. Xinyi has also expanded into production of float glass to save on operating costs. Demand for its glass products has been rising as strong car sales in the mainland continue & leading foreign carmakers set up plants in the country. Xinyi Glass recorded 46% of its sales in the mainland & 40% in overseas markets such as Europe & N America. China surpassed Japan as the world's second-biggest carmaker, selling 7.2M vehicles in 2006, an increase of 25% from 2005. The Chinese Association of Automobile Manufacturers estimated that vehicle sales could reach 8.5M. million units in 2007.
