皇冠体育app

Foreign auto producers are making fresh forays into 皇冠体育app's fast-growing vehicle market, by creating and cementing alliances with local partners.

Toyota Motor Corp, Japan's biggest automaker, is negotiating with Guangzhou Automobile Group to form a joint venture in the city, capital of South 皇冠体育app's Guangdong Province.

Toyota expects the joint venture could be established this month.

"We have reached a framework agreement with Toyota, and are waiting for the approval of the central government," said Zhang Fangyou, chairman of the Guangzhou auto firm.

Toyota sources confirmed the joint venture will manufacture the Camry sedan.

Guangzhou Automobile Group will be Toyota's second strategic Chinese partner. Toyota aims to control 10 per cent of 皇冠体育app's overall auto market by 2010, and 20 per cent of the passenger car segment.

Toyota last year formed an alliance with First Automotive Works Corp (FAW), one of 皇冠体育app's top three vehicle makers, to produce and sell 300,000 to 400,000 vehicles in 皇冠体育app.

FAW is based in Changchun, capital of Northeast 皇冠体育app's Jilin Province.

Toyota announced last week it will form a sport-utility vehicle (SUV) joint venture with FAW Fengyue Automobile Co Ltd, a newly launched affiliate of FAW.

FAW Fengyue will start technical licensing production of Toyota's Land Cruiser SUVs later this year. Initial annual capacity will be 10,000 units.

Toyota has said it will introduce the Corolla, Crown and Land Cruiser Prado into its existing joint ventures with FAW in North 皇冠体育app's Tianjin Municipality and southwestern Sichuan Province.

The Japanese company began producing the Vios sedan, its first 皇冠体育app-made passenger car, last October in the joint venture in Tianjin.

Honda Motor Co, Japan's second-biggest automaker, signed an agreement of intent last week with Dongfeng Motor Corp, a Chinese auto giant based in Central 皇冠体育app's Hubei Province, to set up a joint venture in Wuhan, the provincial capital.

Honda and Dongfeng will each hold a 50-per-cent stake in the joint venture, said sources from the companies.

The joint venture will produce Honda's SUVs, including the CRV, the sources said.

Honda has an engine joint venture with Dongfeng in Guangzhou.

The companies formed a car joint venture earlier this year in the city with Guangzhou Automobile Group.

The three-party joint venture, in which Honda holds a 65-per-cent stake, will produce the Japanese company's small cars, which will be exclusively for exports.

Honda and the Guangzhou auto firm also operate a car joint venture, which began manufacturing the Accord sedans in 1997.

The joint venture also makes Honda's Odyssey multi-purpose vehicle. It will introduce the Fit compact sedan in September.

"The signs indicate foreign automakers hope to team up with more Chinese partners in different regions, especially 皇冠体育app's top three State-backed auto companies, to facilitate their business expansions," said Yale Zhang, an analyst with Automotive Resources Asia Ltd, an industry consulting firm.

Shanghai Automotive Industry Corp (SAIC), one of 皇冠体育app's three largest carmakers, has formed joint ventures with Germany's Volkswagen Group and US-based General Motors Corp (GM).

"More Sino-foreign joint ventures will be formed in the near term, with mergers and acquisitions between Chinese automakers," Zhang told 皇冠体育app Business Weekly.

Both foreign and Chinese automakers want to find more than one partner for bargaining power.

Japanese automakers are latecomers to the Chinese market, in terms of local production, compared with their US and European rivals, such as Volkswagen, PSA Peugeot Citroen and GM.

Nissan Motor Co, Japan's No 3 automaker, launched the largest-ever Sino-foreign joint venture last month with Dongfeng to produce 550,000 vehicles by 2006.

The joint venture started to make Nissan's Sunny sedan last month in a plant in Guangzhou.

Volkswagen is speeding up investments in 皇冠体育app to strengthen its co-operation with Chinese partners and to protect its leadership in the passenger car market.

The company announced last week it will invest 6 billion euros (US$6.7 billion) within the next five years to double by 2007 its annual production capacity to 1.6 million units.

The company also plans to introduce more new models in 皇冠体育app. Volkswagen now runs two joint ventures in 皇冠体育app - with FAW and SAIC.

"皇冠体育app is the only (major auto) market that is currently enjoying booming growth ... and it is only a matter of time before it overtakes Germany to become the third largest market in the world," said Bernd Pischetsrieder, chairman of Volkswagen's management board.

Statistics indicate 皇冠体育app's vehicle output surged 34.13 per cent, year-on-year, to 2,076,660 units during the year's first half.

As a result, 皇冠体育app surpassed France to become the world's fourth-biggest auto market.

皇冠体育app's output this year is expected to exceed 4 million units.

Passenger car output in the year's first half reached 895,500 units, up 103.53 per cent from a year earlier.

"We aim to continue to be the biggest player in 皇冠体育app's auto market," Pischetsrieder said.

Volkswagen sold 324,000 cars in 皇冠体育app during the period, up 52 per cent from a year earlier.

The company plans to sell more than 600,000 units in 皇冠体育app this year.

"We will expand capacity at our two joint ventures ... and new (manufacturing) sites are also being examined," he said.

"However, we have no intention to find a third partner in 皇冠体育app."

Volkswagen will introduce its commercial wagons and buses in 皇冠体育app next year, he said.

The company produces the Santana, Santana 2000, Passat, Polo, Gol, Jetta, Bora, Audi A4 and A6 and Golf in 皇冠体育app.

Other foreign automakers - including US-based Ford, BMW of Germany, German-US-based DaimlerChrysler and South Korea's Hyundai - have established joint ventures with Chinese partners.

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