Cars

China's auto powerhouse dream achievable in near future

(Xinhua)
Updated: 2010-07-17 11:41

CHANGCHUN - Industrial experts say China's dream to become a worldwide auto powerhouse is expected to become a reality as domestic auto makers vow they would focus on brand-building and innovation to become internationally recognized.

"China is set to become a strong auto powerhouse worldwide in ten years' time after industrial restructuring and scientific development," said Zhang Xiaoyu, Executive Vice President of China Machinery Industry Federation.

China is now both the largest auto producer and the biggest auto market in the world. Year-2009 sales and output both surged by more than 40 pct over 2008 to exceed 13 million units.

"When we have achieved this (becoming the largest auto market), we realize our ultimate goal, or our next goal, is to become a strong auto powerhouse," Zhang said.

Compared with global rivals, Chinese car companies are lagging behind in technological research and development, independent innovation, sales strategies and after-sales services, while problems such as low industrial concentration still exists, Zhang cautioned.

But Chinese carmakers are stressing technological innovation more than ever as they gathered Friday in Changchun, capital city of northeast China's Jilin province, agreeing that industrial upgrading would be critical for Chinese auto makers to catch up with their rivals.

Meeting at the seventh China Automobile Fair being held in northeast China's Jilin province, industry chiefs issued a joint pledge to improve product quality and support domestic parts manufacturers.

Related readings:  Automakers in pledge to raise standards, quality  Senior Chinese leader urges auto industry to foster domestic brand  Toyota to improve quality for China market  China's H1 auto sales slow as inventory rises  China's auto subsidy fuels consumption by 20.5b yuan in H1

"Brand building will be our corporation's highest strategy," China' s First Automobile Works (FAW) announced at an industrial forum held during the Automobile Fair.

"Finally, it comes down to a competitive car company and globally known brands to reflect an auto powerhouse," said Wu Shaoming, vice general manager of China FAW Group.

Quality, technology and innovation will be ceaselessly pursued in FAW' s journey to become a well-known name, Wu said.

China's homegrown private carmaker, Geely, said at the Fair that the company planned to sell two million cars globally by 2015.

By reorganizing and consolidating its research institutes, Geely would be able to design more than 40 car models annually before 2015, said Victor Young, Director of Public Relations of Zhejiang Geely Holding Group Co Ltd.

Zhang Xiaoyu said Chinese auto makers needed to further readjust organizational and technological structures in order to increase their market share of home brands.

"The next ten years will be a critical period for China's auto industry to become a real powerhouse," Zhang Xiaoyu said, though the mission must be achieved in steps.