Fuji Heavy Industries (7270.TYO), the only Japanese carmaker that doesn’t build cars in China, is likely to produce its Subaru vehicles in the country from April 2012, Bloomberg reported. The company will target annual sales of 100,000 cars, said Ikuo Mori, president of Fuji Heavy. Subaru sales rose 66% year-on-year to 52,039 units in China between January and November, thanks to the introduction of the Impreza XV and Impreza WRX STI sedans this year plus ongoing demand for the Legacy model. Mori said the sales target of 100,000 units is necessary to offset the drop in profit from a 50-50 joint venture with a Chinese carmaker, which is the only way to enter the market directly. Total car sales in China are expected to be as high as 20 million units in 2011, up from 17 million units this year. J.D. Power and Associates predicts that sales will double to 34 million units by 2020.
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