Chery to expand overseas

• Source: Ce.cn
• [15:19 August 26 2009]
• Comments

Chery spokesman Jin told China Daily that the company will build an assembly plant in Brazil, the world's ninth-largest auto market, in the next three years.

The China Association of Automobile Manufacturers reported that in the first seven months of this year, exports of China-made vehicles slumped 60.3 percent over a year ago to 164,800 units as the financial crisis shrank auto demand in markets outside China.

However, Chery still retained its leading position among Chinese automakers with the export of 15,000 units.

Statistics show that in the past three years, Chery contributed more than half of China's exports of homegrown passenger cars.

Analysts said domestic automakers have been smart to begin shifting their focus from product exports to capital outflows, as overseas production might reduce costs, avoid trade barriers and promote Chinese brands in the international market.

Last month, China's Chang'an Auto reported it would invest more than $80 million in South Africa to establish a production plant and a financing company in the next five years.

JAC Motors also said in July that it would establish a manufacturing base in Brazil.

(China Daily)