AS China's economic growth continues to fuel its automotive
sector, private automobiles, a symbol of prosperity, will soon
make up the majority of road traffic.
Further recognizing
the potential of the emerging market, foreign automakers spearheading
their global strategies into frontier areas are focusing on
economy cars to meet the needs of the country's 300 million
households.
The American General
Motors Corp (GM) and the Japanese Toyota Motor Corp are gearing
up their efforts as the Chinese Government has begun planning
for the motor sector for the 2001-05 period and beyond.
With about 30 component
plants already in China, Toyota is waiting for the Chinese
Government's approval to complete its process of building
economy cars.
Toyota and its
Chinese partner have submitted the government proposals for
manufacturing economy cars, said Fujio Cho, Toyota's president,
in Beijing.
The cars would
have 1.0-litre and 1.5-litre engines, and the product is a
niche in the country.
Cho was in China
for the Fortune Global Forum held in Shanghai and Beijing.
Toyota and its
Chinese partner are busy doing feasibility studies, Cho said.
Cho did not identify
Toyota's Chinese partner, but said he had talked with Chinese
officials in Tianjin about the expected auto-making joint
venture.
The Tianjin Automotive
Industry Corp manufactures 1.0-litre and 1.3-litre Charade
cars with licensed technology from Daihatsu, a member of Toyota
Group.
Once the approval
for Toyota is made, it will signal that the country has begun
implementing the strategy shift from business cars to cars
affordable to ordinary Chinese.
GM, the world's
largest automaker, is ready to manufacture economy cars with
the latest technology, said Lawrence Zahner, president of
GM China Operations.
China has permitted
foreign direct investment in maVnufacturing cars above the
1.6-litre size, mainly for government departments and businesses.
Surveys show more
Chinese afford economy cars. Economy cars that carry the latest
technology and have a nice design will be the centerpiece
of China's 10th Five-Year Plan (2001-05).
GM, with brand-new
car designs such as Qilin, developed by the Pan Asia Technical
Automotive Centre, are stepping up campaigns to win approval
from the Chinese Government as market demand for economy cars
rises.
Zahner said any
automobiles GM builds in China next to Buick cars will be
family cars. GM is building 2.9-litre Buick cars in a US$1.5-billion
joint venture with Shanghai.
In a group interview,
Zahner said GM expects to participate in manufacturing cars
in full range for all market segments in China.
Shirley Young,
GM's vice-president, said she believed China can skip many
phases and jump onto an advanced stage by incorporating new
technology. GM will help with that.
(China Daily 10/01/1999)
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