Chinese automakers look to international market

The Chinese automotive industry has grown rapidly in the last decade but analysts are predicting domestic sales to slow down due to high oil prices, supply shortages and increased competition. In response, Chinese automakers are looking to the international market, particularly Africa, South America and Asia. To make this a reality, Chinese automakers have been raising funds via bank loans and share offerings to fund their international expansion. Examples of Chinese automakers actively involved in raising funds to accelerate their global expansion are companies such as Chery, Brilliance, Great Wall and SAIC. Chery is to receive US$6.58 billion from the China Development Bank for research and development. Brilliance has recently announced plans to build and expand bases in Africa. Great Wall has announced plans to build four new plants overseas by 2015, one of which is already under construction in Bulgaria. SAIC Motor is raising funds from its parent Shanghai Automotive Industry Corp. through an asset restructuring plan. (June 1, 2011)