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(Xinhua)
Updated: 2007-07-16 09:50

CAAM president Hu Maoyuan said Chinese indigenous auto brands have entered a crucial phase where they have the opportunity to become strong businesses and global producers.

Other Chinese auto makers, including Zhongxing, Jianghuai and Lifan said they are revamping their strategy, and investing heavily in developing higher-grade vehicles.

"By taking over foreign companies that have a strong research and development culture, or cooperating with partners, Chinese auto brands will improve their technology and development capabilities," said Xiao Guopu, vice president of the Shanghai Automotive Industrial Corp.

But the international market is far from easy, Xiao added. "Chinese automakers still face a lot of handicaps, including undersized sales network and a lack of talented people able to work in the international market," he said.

Last year, China became the world's second largest market for new vehicles after the United States, with an output of 7.28 million and sales of 7.22 million.

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