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China 2005 car exports ahead of imports
(AFP)
Updated: 2006-02-10 22:24

China's auto exports climbed by more than 120 percent last year to overtake annual imports for the first time.


A man checks out a Chinese-made car during a car show at the historic Longhua Temple in Shanghai. China's auto exports climbed by more than 120 percent last year to overtake annual imports for the first time. [AFP]

Auto exports totalled 170,000 vehicles in 2005, up 120.5 percent, while imports rose just eight percent to 160,000, the Beijing Times reported, citing the Ministry of Commerce.

China-made vehicles were largely trucks -- accounting for over three-quarters of the total -- with exports of sedans and low-priced small cars also climbing.

Sedans saw the biggest rise in exports, with 30,000 being shipped, up 233 percent over 2004.

Chinese based-companies currently export vehicles mainly to developing nations in Africa, the Middle East and Southeast Asia, but also plan to export to the competitive United States and European markets.

Chery, one of the Chinese groups leading the charge overseas, has signed a preliminary agreement to manufacture auto parts with Avtotor of Russia, the Xinhua news agency reported Friday.

The report, which provided no financial details, cited an unnamed manager at Chery saying that the group, based in China's eastern Anhui province, was keen to build production bases in Russia, Romania and Poland.

Avtotor already assembles South Korea's Kia cars, BMWs and General Motors' Chevrolet, Cadillac and Hummer jeep brands.

Chery and the Russian group were also mulling a separate plant involving an investment of 200 million dollars, the report said.

Under a commitment to the World Trade Organization, China will remove tariffs on auto imports by the end of 2006, when already fierce competition promises to heat up even more.



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