LIUZHOU - The first China-ASEAN Automotive Expo, held in this industrial hub in the Guangxi Zhuang autonomous region from Dec 8 to 10, provided a springboard for more Chinese automakers to enter the Southeast Asian market, according to organizers.

Guangxi has become a center for regional cooperation since a free trade agreement between China and ASEAN (the Association of Southeast Asian Nations) took effect in January 2010.

Liuzhou, known for its strength in auto and machinery production, is a regional home to four of China's key automakers - SAIC, FAW, Dongfeng and Sinotruck.

It is the site of the national headquarters for SAIC-GM-Wuling, which has led minivan segment for several years.

"This expo mainly showcases economical passenger vehicles, trucks and specialized vehicles catering to the demands of the ASEAN market," said Chen Jie, deputy mayor of Liuzhou.

"Southeast Asian purchasers can conveniently buy what they want at the expo, while Chinese manufacturers can seek more cooperation opportunities with companies in ASEAN," he added.

A new double-seat electric car made by Liuzhou Wuling Motors Co priced around 30,000 yuan attracted a great deal of attention at the expo. "We have accepted orders from several Southeast Asian companies," said Li Feihong, an executive of the company.

Organizers said the auto expo will now be held annually in the city every October from 2012 as part of the China-ASEAN Expo, the top trade fair for the region.

Tran Trung Kien, manager of a vehicle trading company in Vietnam, said his operation used to ship tractors from Jinan in Shandong province, "but when we started importing from Liuzhou, we had 70 percent savings in transportation costs".

"Liuzhou-made farming equipment is very popular in Vietnam because it is cheap and durable. Each year we sell more than 200 tractors in Vietnam, some that cost $50,000 apiece," he added.

From January to October, Liuzhou's auto exports generated revenues of $140 million, a 48 percent increase from a year ago. About 40 percent of the exports went to Southeast Asia.

Deputy Mayor Chen said Liuzhou's production and sale of vehicles are expected to hit 1.4 million units next year, then grow to 2.5 million after the completion of a large auto industry park.

But he added that the city needs more auto component manufacturers. If companies from Thailand and Indonesia export components to the city, both sides would benefit, he added.

China Daily

(China Daily 12/12/2011 page18)