GAC Motor expects to expand its presence in the Middle East

GAC Motor Co Ltd, a division of the State-owned Guangzhou Automobile Group Co Ltd, will continue to promote its brands in the overseas market despite the slowdown in exports of domestically made vehicles, a top company official said on Tuesday.

"We will focus on the domestic market, but we will also prioritize brand promotion in the overseas market," said Wu Song, general manager of GAC Motor.

GAC Motor, which was established in 2008 and focuses on development of self-owned brand vehicles, reported a 150 percent increase in domestic sales in July from a year ago.

"High quality and changing habits of Chinese consumers have played a vital role in boosting domestic sales. GAC Motor's goal is beyond increased sales - we are aiming to build an international brand that is competitive in China and abroad," said Wu.

According to customs data, China exported 334,000 vehicles in the first five months of the year, down 9.1 percent year-on-year.

"We believe that home-developed brands with advanced technologies and design will have potential in the overseas markets, despite the decline in demand," Wu said.

As a strategic partner of the China International Fair for investment and Trade, which opened on Tuesday in Xiamen, GAC Motor's GA6 is the sole reception vehicle for guests during the event.

Khalid Al Rumaihi, chief executive of the Economic Development Board of Bahrain, said GAC Motor's cars would be as popular as global counterparts in the Middle East as Chinese home-developed brands are of high quality and design.

After signing agreements with local sales agencies, GAC Motor will soon launch operations in Bahrain, according to the company.

"Bahrain will become the sales headquarters of our Middle East operations. It is already a major market for global car brands," said Wu.

After officially launching sales in Kuwait and Dubai in 2014, the company continued to expand in the Middle East, with sales being promoted to Lebanon and Qatar in May.

Sales of GAC Motor vehicles in Kuwait last year doubled that in 2013, and accounted for 40 percent of Chinese brands in the Middle Eastern country, according to the company.

"Entering the Middle East market is of great significance to us as we compete with major international car manufacturers and promote Chinese home-developed brands," said Wu.

GAC Motor sells sedans including the GA3, GA5, GS5 and GA6 models to more than 10 countries and regions including the Middle East, South America, Southeast Asia and East Europe. The company plans to sell 5,000 cars this year in the overseas markets.

According to Wu, GAC Motor is expected to launch sales in the United States in 2017 and more sales centers would be opened in countries and regions along the Maritime Silk Road and Silk Road Economic Belt.

qiuquanlin@chinadaily.com.cn

(China Daily 09/09/2015 page17)