One of China's largest automakers is to set up a components factory in Chongqing.
Chongqing Lifan Automobile Co. will build an auto components export centre in Chongqing's Tongxing industrial zone, according to a recent announcement from Lifan's headquarters. The Chinese OEM will be investing $5.4 million in the new project as it continues to set its sights on overseas markets.
In July, Lifan signed a deal with Brazilian auto dealer EFFA motors, with whom it has a joint venture, to build a $130 million 10,000 vehicle capacity assembly plant and research and development centre in Brazil. Lifan company already operates several small assembly plants outside of China, including facilities in Azerbaijan, Ethiopia, Russia, Uruguay, Vietnam and a newly opened plant in Iraq, which assembles Lifan sedans from imported kits.
Lifan's sales in the first half of 2011 rose 59% year-on-year to 95,666 units, according to the Chinese Association of Automobile Manufacturers.