Chery, Changan Auto in emerging-market push
Chery Automobile and Changan Automobile are the latest mainland carmakers to increase their investment in emerging markets to boost sales given the slower domestic market.
Anhui-based Chery, the country's fourth-largest carmaker, might open a plant in South Africa, Johannesburg-based The Times reported, citing Chery vice-president Zhou Biren. The report did not disclose the size of Chery's possible investment, its production scale or sales target.
Chery spokesman Jin Yibo could not be reached for comment.
The carmaker, which started selling vehicles in South Africa in May through McCarthy Group, had sold more than 2,500 cars in the country, the report said.
Chery said this month it would spend up to US$500 million in Argentina over the next four years to build manufacturing plants, although the economic downturn is spreading to emerging markets. It has set up a joint venture with Argentina's Socma Group and plans to sell 50,000 vehicles in that market in 2011 and 100,000 units by 2012.
Meanwhile, Chongqing-based Changan Auto said it would start making cars in Mexico next year.
Changan and its partner, Autopark Mexico, would form an assembly venture to build as many as 50,000 vehicles a year, Bloomberg quoted spokesman Zhang Baojun as saying.
Changan Auto will make Benben minicars and Zhixiang and Yuexiang cars at its sixth overseas plant in Mexico.
It will be the third Chinese carmaker to announce an investment in Mexico after Hong Kong-listed Geely Automobile Holdings and Jilin-based First Auto Work Group (FAW).
FAW said it would build a US$150 million factory with Group Elektra in Mexico. The factory is due to start production next year with an annual capacity of 100,000 cars.
Geely, which wants to build manufacturing plants in Mexico, is negotiating better investment terms with the government.
Mainland carmakers, which have been advised by Beijing not to seek overseas mergers and acquisitions, will expand their investments in developing regions and take part in domestic consolidation to build a more solid position in the market.
State-backed Beijing Automobile Industry Corp, a joint-venture partner of Daimler, is in talks with former partner Chrysler about taking over the US carmaker's production lines and equipment on the mainland.
