The eighth overseas factory of Chinese carmaker Chery in Malaysia has begun mass production.

The company's President Yin Tongyao made the announcement at the opening ceremony of its first CKD MPV Eastar plant in Malaysia last week.

The cars, with all parts made in China, are assembled in Chery's eighth overseas factory set up in Johor Bahru, capital of the Malaysian southern Johor state.

The company also announced that more new models will be introduced in Malaysia soon.

"Malaysia is the largest passenger car market in ASEAN (Association of Southeast Asian Nations) and also the important link (for Chery) to other ASEAN countries' markets," Yin says.

Chery previously established overseas factories in Russia, Ukraine, Iran, Egypt, Indonesia and Argentina.

"We are planning to accelerate more overseas factories in the coming two years," Yin says, adding that in 2010 there will be 14 more.

"In 2010, we are planning to export 400,000 vehicles," Yin says.

In 2007, Chery exported 120,000 vehicles, a 132 percent increase year-on-year, and realized the doubling of exports to the overseas market for the second time, according to Yin.

With the joint venture with Malaysia's Alado Corporation, Chery intends to set up its regional headquarters in Malaysia and make Malaysia its main manufacturing hub for producing right-hand drive vehicles targeting the ASEAN markets, says Gu Jingqi, Charge d' Affairs of the Chinese Embassy in Malaysia.

"Chery has already established their countrywide service network to ensure excellent after-sale service for the Chery car owners in Malaysia," Gu says.

Malaysia wants to see more investments in research and development by foreign auto manufacturers, Malaysian deputy Prime Minister Najib Tun Razak says.

"By choosing Malaysia as its base, ASEAN's fast growing auto market, which is projected to reach 2 million new cars and light commercial vehicles by 2010, will become immediately accessible to investors through their Malaysian partner," Najib says.

Xinhua

(China Daily 09/08/2008 page7)