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Chinese carmakers step up efforts overseas

Manufacturers Geely and Chery look abroad as their share in the domestic sector shrinks.

Zhejiang Geely Holding Group Co and Chery Automobile Co are ramping up production and sales efforts in developing nations. As fierce local and foreign competition squeezes Chinese carmakers, both companies are focusing heavily on emerging markets for growth.

Geely plans to sell 80,000 vehicles overseas in 2012, more than double its volume from last year. June sales figures looked promising for the Hangzhou-based auto maker, whose exports increased 35% to 10,000 units from 6,500 units last year. The company supports overseas efforts with semi and complete knockdown plants across Egypt, Indonesia, Iraq, Russia, Sri Lanka and Ukraine.

Chery Automobile Co, China's largest passenger vehicle exporter, has also announced plans to build a 505 million yuan ($80 million) assembly plant in Malaysia, which will supply vehicles to Thailand, Indonesia, Sri Lanka, Pakistan and other South Asian markets. While the automaker has already chosen the site for its second plant in Malaysia, it is still awaiting government approval before construction can start.

In 2011, Chery sold over 3,000 vehicles in Malaysia and sees the developing nation as a key growth market. In the first five months of the year, the company exported 72,792 units, accounting for 31% of sales.

Tags: automotive industry, China, Corporate News, OEM and automotive

Published 22nd July, 2012

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