Chinese Truck Maker To Launch Sedan

SHANGHAI August 29. 2006; Reuters reported that pickup and sports utility vehicle maker Great Wall Motor Co. Ltd. (2333.HK) will roll out its first sedan next year, targeting its home market in China as well as markets overseas.

The Hong Kong-listed firm, which is building a new 2 billion yuan ($251 million) facility, will launch a compact car in the first quarter of 2007, followed by larger models later that year, a senior executive told Reuters on Tuesday.

The new assembly plant, located in Great Wall's home base in northern China's Hebei province, has the capacity to churn out 200,000 cars per year.

Great Wall has yet to set a price or a sales target for its new sedan, which it plans to roll out both locally and in some developing markets, while its Deer pickups and Hover SUVs are already on the market, said the executive, who asked to remain anonymous.

Great Wall sells to more than 50 countries and regions, including Africa, the Middle East, South America and Russia.

Exports came to 18,000 units in 2005, accounting for a quarter of its overall sales. The ratio could increase to 35 percent this year and expand further to 50 percent by 2008, the executive said.

The firm also plans to enter the tough western European market and has picked an Italian trading firm as its partner.

"We are still working on it. We hope to debut in Europe as soon as possible," the executive said.