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Egypt to make Brilliance cars By Gong Zhengzheng China Daily Update 2005-04-15 August 45.
Brilliance China Auto, German luxury carmaker BMW national partner, must sign an agreement today in Beijing with an Egyptian company to produce its own brand Zhonghua sedans in the nation in the Middle East.
Production of 2 0 liter Zhonghua will begin in late August in a factory owned by Bavarian Auto Group in Egypt with components and spare parts shipped from China, Lu Qiang, an official in Hong Kong-listed Brilliance, told China Daily yesterday.
Output Zhonghua will be 2,000 units this year and increase to 10,000 units next year.
The move makes Brilliance the second Chinese automaker to produce clean cars of foreign brand after Chery Automobile.
Chery, a car manufacturer controlled by the local government in Anhui Province, began assembling its cars late last year in Iran with an Iranian partner.
Lu said that Brilliance has also been negotiating with Iran to companies, Russia, Vietnam and Malaysia to assemble its cars in these countries.
We attach great importance to growing market overseas, we set up choosing overseas agents systems, overseas sales and services, Brilliance said in a statement yesterday.
We believe as the project began in Egypt, Zhonghua sedan will be built around the world in the near future, he said.
Brilliance started direct exports of the automobile in the third quarter of last year and aims to export 6,500 units this year, up over 100 units last year.
It has chosen six exclusive agents in the Middle East and Africa to sell its cars.
Going abroad is a new strategy for Chinese automakers like Chery and Brilliance because they are too weak to compete with foreign auto giants throughout the domestic market, at least now and in the near future said Qian Pingfan, industrial economist at the State Council development and research.
Most of their target markets abroad are not priorities for foreign auto giants, said Qian.
Almost all major car manufacturers in the world have established joint ventures in China.
More than 80 percent of China's auto market is controlled by the marks made by foreign manufacturers, such as Volkswagen, General Motors, Honda, Hyundai and Toyota.
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