Chinese carmakers have long been riding on the nameplates of foreign
companies or struggling to produce reliable brands.
But yesterday's announcement by Shanghai Automotive Industry Corp (SAIC) even
though it is a joint venture partner of two global giants that it would branch
out on its own to make cars signals a new trend of Chinese companies trying to
make a distinct mark on the market.
A model poses besides
a Chevrolet car at the Shenyang international auto show in this June 30,
2005 photo. [newsphoto] |
SAIC's
recently-formed unit, SAIC Motor Manufacturing Co Ltd, said that it plans to
roll out 30 models from five platforms with a total investment of at least 10
billion yuan (US$1.2 billion) from 2006 to 2010.
SAIC Motor aims to sell more than 200,000 cars a year by 2010 both at home
and abroad.
Beijing Automotive Industry Corp, which has joint ventures with
DaimlerChrylser and Hyundai Motor, has also said that it plans to introduce its
own cars by 2008.
SAIC Motor's product line will include medium- and-high-end sedans, sport
utility, multi-purpose and recreational vehicles as well as compact cars.
"We will use our global resources to build international brands starting from
medium- and high-end products," said Wang Xiaoqiu, general manager of SAIC
Motor.
Parent company SAIC bought the technology of the Rover 75 and 25 models from
the collapsed British carmaker MG Rover for 67 million pounds (US$117 million)
in 2004; and paid US$500 million for a 48.9-per cent stake of South Korea's
Ssangyong in the year.
SAIC Motor will launch its first product a large sedan based on the Rover 75
by the end of the year, Wang said.
He said the company would also use the engineering expertise of SUV-maker
Ssangyong.
SAIC Motor has set up two research and development centres in Shanghai and
Warwickshire, England with a combined strength of 750 Chinese and foreign
engineers. The number will be eventually be increased to more than 4,000.