BEIJING: Chinese automakers are planning to expand their business network in Pakistan. “We plan to build a new automobile assembly plants in a number of countries, such as Pakistan, Venezuela and Syria,” said a spokesman for Brilliance China Auto, German luxury carmaker BMW’s Chinese mainland partner. “We are engaged in setting our sights in foreign markets. Building assembly plants overseas will enable us to explore overseas markets faster than direct vehicle exports,” the spokesman said. 

Another Chinese company based in East China Anhui Province has also offered Pakistan to enhance their bilateral co-operation in automobile sector.

“We are already in process of negotiation with their Pakistani counterparts to set up car plants,” said Zhang Yi, an official of the company in an interview with APP.

The two sides can join hands to manufacture cars both for domestic need and export purposes, he added.

“Chinese auto-makers could also enjoy cheaper land and labour costs to produce vehicles in those markets, which are mostly in developing nations than in the Chinese mainland,” said Qian Pingfan, an industrial researcher from the State Council Development Research Centre.

“Chinese auto-makers building assembly plants overseas are less competitive players in the domestic market than the foreign auto giants. Therefore, it is a fairly good way for them to survive by entering developing countries’ markets,” Qian said.

Brilliance Jinbei’s sales dropped to 72,600 vehicles last year from 101,000 in 2003 mainly due to fierce competition in the domestic auto market. The company, which also makes Hiace vans, has an annual production capacity of 100,000 units.

China’s vehicle exports have been sky-rocketing in recent years, but remain tiny compared with the nation’s vehicle imports.

The nation exported $779 million of vehicles last year, up 93.3 percent from 2003, according to official statistics.

In contrast, the value of China’s vehicle imports totalled $5.4 billion last year.

All of the world’s major auto-makers, such as General Motors, Toyota, Ford, Volkswagen, DaimlerChrysler, Nissan-Renault, PSA Peugeot Citroen, Honda, and BMW have established vehicle joint ventures in China. And they control almost 90 percent of China’s car market.

Total sales of vehicles made in China increased 15.5 percent year-on-year to 5.07 million units in 2004, including 2.33 million cars.