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Chinese Car Maker Showing Global Ambitions

SAIC Motor, the Chinese carmaker, is going to spend an extra $1.25 billion to get its global ambitions on rout. The Chinese carmaker is interested in selling its own brand of cars globally. SAIC joins fellow Chinese carmakers Geely Automobile Holdings Ltd. and Chery Automotive Co. as they aim to follow other Asian carmakers such as Toyota Motor Corp. and Hyundai Motor Co. onto the global scene.

SAIC is adding five production lines and will build 30 new models by 2010, doubling the output capacity to 300,000 units, say Wang Xiaoqiu, general manager of the unit, SAIC Motor Manufacturing. "Our target is to sell over 200,000 own-brand cars by 2010, with 45,000 of that shipped to overseas markets, including Europe," he said. SAIC has targeted vehicle sales, including trucks and buses, of 2 million units by 2010, of which 600,000 would be developed on its own.

Global automakers have rushed into China in the past few years, setting up factories at breakneck speed to grab a piece of the ballooning car market. Analysts have warned that some foreign brands would be squeezed out eventually, given the Chinese government`s stated ambition of nurturing a national car industry through the biggest brands, including SAIC, FAW and Dongfeng Motor.