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China Automobile Manufacturers

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					(Alberta China office – ACO has recently received enquiries from Alberta companies
regarding China’s auto and auto parts sector, the following is a brief report that is
hopefully useful.)

         A Brief Market Review of China’s Automobile Manufacturers
The automotive industry is a fast-emerging sector in China and is continuing to attract
new entrants. In 2006, China manufactured 7.27 million vehicles, making it the third-
largest automobile-manufacturing nation in the world. This is a 27% increase in
production over the previous year. In the first half of 2006, China exported 34,456
automobiles, which 20,020 automobiles were domestically branded ones, with an
increase of 466.8% of that in the previous year. However, international market is still a
big challenge for China domestic car manufacturers due to their relatively unknown
brands, lack of talented personnel, financing resources, sales network as well as other key
factors.

China’s automotive industry is very young and has difficulties to obtain the necessary
technologies for auto manufacturing using their own resources. The Chinese government
sets strict restrictions for foreign enterprises to invest in its automotive industry, the most
notable being a maximum 50% equity stake for auto joint ventures. By the late 1990s
many automotive giants were rushing into China, and till today, nearly all the major
players in the world’s auto market have established a presence.

According to China Association of Automobile Manufacturers, the top 10 car
manufacturers in China are Shanghai Volkswagen, FAW Volkswagen, Shanghai GM,
Tianjin FAW, Guangzhou Honda, Dongfeng, Tianjin FAW, Chery, Geely, Tianjin FAW
Toyota Motor Co., Ltd,. Most of them are joint venture companies.

The following companies are major local car makers in China.

1) Chery Automobile Co,.Ltd. http://www.cheryglobal.com/

Chery Automobile Co,.Ltd. was founded in 1997 in the city of Wuhu, in China’s Anhui
Province, specializing in the production and operation of automobiles and auto
components. By 2005, the total assets of Chery are RMB 11.8 billion. Chery has
employed 13,000 people. Chery has developed the production of vehicles, engines,
gearboxes and other core components.
In 2005, Chery achieved a sales volume of 189,100 cars with a total increase rate of
118%, and exported 18,000 cars overseas, ranking No.1 in the export of domestically
made cars.
Chery targets to produce more than one million cars by 2010 and enhance the export
share to 40 percent of Chery total sales volume in overseas market.
In May 2003, Chery established a joint venture in Iran to make 50,000 autos per year. By
October 2004, Chery’s factory in Iran had started manufacturing cars. In addition, the
company set up 21 dealerships in Syria, which sold 3000 Chery automobiles.
2) Geely Holding Group http://www.geely-global.com/

Geely Holding Group is a large business group mainly engaged in the production and
sales of automobile and its components.

Founded in 1986, the Group has made outstanding achievements in the aspects of
automobile, motorcycle, automobile engine, gear box, components, higher education,
manufacturing of decoration materials, tourism and real estate industry, with total assets
over RMB5 billion.

The head office of the Group is in Hangzhou, capital city of Zhejiang Province. With four
major manufacturing bases in Linhai, Ningbo, Taizhou and Shanghai, the company now
has an annual production capacity for 200,000 complete vehicles, 200,000 engines and
150,000 gear boxes. With the successive completion and operation of the new projects in
Ningbo, Taizhou and Shanghai, the complete vehicle annual production capacity of the
company will rise to 300,000, and the engine annual production capacity will also rise to
300,000. Zhejiang Geely Holding Co., Ltd. now has nearly 8000 staff.

More than 20,000 Geely cars have been exported to north Africa, the Middle East, East
Europe, central and south America, South Asia, South East Asia, etc. By the end of 2006,
Geely has established an extensive trading relationship with over 40 countries in regions
covering North Africa, the Middle East, East Europe, central and south America, South
Asia, Southeast Asia, etc. Geely had developed 26 dealers and 128 sales networks at
overseas, exporting up to 30000 units.

3) BiYaDi Company Limited http://www.bydauto.com.cn/

BYD AUTO is a subsidiary of BYD Company Ltd., which is a listed company in Hong
Kong.BYD Company Ltd. made its debut from less than 30 people in 1995 and became
the second largest rechargeable battery producer in the world in 2003.In the same year,
BYD Company Ltd. started to set foot in the automotive industry by purchasing the
Tsinchuan Automobile Company, which is the basis of BYD AUTO Company
(Ltd).Now, BYD Company Ltd. has more than 40,000 staff members all over the world
with its market value over HKD 15 Billion.
Since its establishment, BYD AUTO devoted itself to researching, developing and
manufacturing the Fuel vehicle,E-vehicle and Hybrids-vehicle.

4) Harbin HF Automobile Industry Group Company Ltd.
http://www.hafeiauto.com.cn/skin/hafei/en-index.htm

The group was established in 2006 and has enterprises such as HF automobile factory,
Dongan engine factory, Dongan engine manufacturing company Ltd., Dongan Electro-
mechanic company, Shenzhen and Weihai subsidiaries. The group has now more than
11,000 employees and RMB11.14 billions of total assets. At present, the group has an
annual production capacity of 400,000 automobiles and 550,000 automobile engines. Up
to the end of 2005, the group has produced and sold totally more than 1.43 million of
various types automobiles of which 40,000 automobiles have been exported and 2.72
millions of engines. Up to now, the products of the group have been exported to more
than 40 countries.

 5) Jiang Xi Changhe Automobile Co., Ltd.
http://www.changhe-auto.com/index3.html

Jiangxi Changhe Motors Co.,Ltd. was founded in1999, under Changhe Aircraft Industries
Group, Ltd. It’s a joint-stock corporation and has RMB 300,000,000 registered capital.
The annual production capacity is 160,000 automobile. In China, it is one of the four
largest minivan manufacturers and one of the top ten automobile manufacturers.

Ms. Yun Song, responsible for North American Market at songyun@changhe-suzuki.com

6) Dongfeng Automobile Company       http://www.gwauto.com/EN/

Baoding Xincheng Automotive Company Limited is one of the subsidiaries of Great Wall
Motor Company. The main products of the company include special cars, camping car,
light-passenger interior decorations and seats. The company owns assets of over RMB
62,000,000, with 800 employees.
Please send email to ccrv@gwauto.com for any enquiries.


7) Brilliance Auto
Brilliance Auto is a listed company in US stock market in 1992. The group has 159
subsidiary companies with 34000 employees.

http://www.brilliance-auto.com/
Other information:

Information from Transport Canada regarding the process of importation, the following
link provides all the detail and has the application forms etc. The manufacturer must
apply, so too must the commercial importer (and they should probably work together).
http://www.tc.gc.ca/roadsafety/importation/pre/menu.htm

We noticed Geely has approved in Canada in the following website, but not other
Chinese manufacturers.
http://www.tc.gc.ca/roadsafety/importation/vmrtc/menu.htm

1.           Geely Group Zhejiang Motorcycle Co., Ltd.
             (RUMs & ATVs only)
             Geely Road, Luqiao District, Taizhou City
             Zhejiang Province , **, X
             318050

             Geely Road, Luqiao District
             Taizhou City, , **, X
             318050

                    All-Terrain Vehicle

             Restricted-use Motorcycle


The following two websites are related to the general and updated information about the
auto industry in China.

http://english.qiche.com.cn/

China Association of Automobile Manufacturer
http://caam.org.cn/caam/caam.web/Default.asp

Prepared by ACO – Sophia Sun
June 22, 2007

				
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