China hopes to boost total exports to 85 billion dollars by 2015 from 30.2 billion dollars in 2008 via an expansion of research and development through acquisitions, according to a proposal by six government agencies.

The world's second-largest automaker after the United States also aims to capture 10 percent of the world's auto export market by 2020, according to the proposal posted on the Ministry of Finance's website Wednesday.

"(We will) make efforts to cultivate Chinese multinational auto and auto parts groups with strong technology innovation capability and core technology, and support exports of autos with home-grown brands," it said.

The government also will help local manufacturers "master relevant technologies of key components through domestic and overseas merger and acquisitions" to improve research and development.

Domestic automakers will also be encouraged to set up production plants and outlets overseas and support the export of energy-efficient auto products, the proposal said.

China's auto exports have been hit hard by dwindling demand abroad due to the global downturn.

In the January to September period, exports of vehicles and auto parts dropped 33.6 percent from a year earlier to 25.8 billion dollars, according to figures from the China Association of Automobile Manufacturers.

The domestic auto market, however, has defied the financial crisis thanks to strong economic growth and government incentives, with sales exceeding the one million unit mark in October for the eighth straight month.

earlier related report
BMW and Chinese partner to invest 5 bln yuan in expansion
Beijing (AFP) Nov 12, 2009 - BMW and its Chinese partner will invest five billion yuan (732 million dollars) to expand production capacity in the world's biggest car market, the German auto maker said Thursday.

The long-term injection by BMW and its joint venture partner Brilliance Auto Group will take their total investment in China to 9.5 billion yuan, BMW said in a statement, without providing an exact timeframe for the new investment.

The luxury car maker said the money would be used to boost the production capacity of an existing plant at Shenyang in northeastern China, and to build an engine facility.

BMW said this week that sales in China of its own-name and Mini-brand autos soared 81 percent in October from a year earlier to a monthly record of 9,558 units, without providing a comparative figure for 2008.

That compares with an anaemic two percent increase in overall global sales.

China sales in the January-October period jumped 36.7 percent to 71,952 units from 52,622 units a year earlier, BMW said.

The Asian giant has been a bright spot for foreign auto makers struggling to boost sales in the rest of the world amid the financial crisis.

China's total car sales outstripped those in the United States for the first time in January to make the Asian giant the world's largest car market, helped by Beijing's efforts to stimulate domestic consumption.

These measures included slashing taxes on cars with engines smaller than 1.6 litres and subsidising alternative-energy vehicles.

China's auto sales rose 72.5 percent in October from a year ago to 1.23 million units, an industry body said this week, the eighth straight month that sales exceeded the one million unit mark.

For the first 10 months of the year, sales rose 37.7 percent on-year to 10.89 million, the China Association of Automobile Manufacturers said in a statement.

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