Manufacturers take first steps to exploiting the exports sector

Moving on from the undoubted success of selling the world lots of cheap clothing, toys, and consumer electronics, manufacturers are eyeing motor vehicles as the next big export item.Indeed, Chinese car makers have made impressive progress in recent years.

Last year, the mainland became a net exporter of vehicles for the first time, selling 172,800 to foreign countries, an impressive growth of 27 per cent over 2004, compared with imports of 162,000 vehicles, according to customs figures.

Export volume and the price of complete vehicles have also risen in the first quarter of this year. In the period, the country exported 62,628 complete vehicles, including knock-downs, with a value of US$646.96 million. The figures were up 139 per cent and 204.5 per cent over a year earlier.

In the period, the export volume and value of cars shot to 16,813 units and US$116.67 million, gaining 458 per cent and 302 per cent year on year. Sports utility vehicles hit 565 units and US$5.71 million, climbing 334 per cent and 120 per cent from the same period in 2005.

However, experts said China's emergence as a car export power is far away despite its position as a manufacturing giant.

Last year, the mainland produced 5.7 million units vehicles, with output growing 13 per cent year on year over 2004. Industry experts have forecast annual output of between 10 million and 12 million units over the coming four to five years.

'China will become an important global vehicle exporter with the development of economic globalisation. Still, Chinese exports are at their experimental stage,' said Chen Naihui, the president of the Industry Research Institute.