November 22, 2002

China Exports First Shipment of Compact Cars to US

A shipment of 252 Xiali economy cars manufactured in north China's port city of Tianjin is on its way to the United States market. Tianjin is the leading manufacturing center for economy cars in China.

The cars, produced by Tianjin Auto Group in cooperation with Toyota, are the first batch of Chinese-made economy cars to be exported. They are part of a deal signed in April between the manufacturer and American Automobile Network Holdings Inc., which will be the sole agent for Xiali economy cars on the international market.

According to the deal, the American company will be responsible for selling at least 25,000 Xiali cars during the next five years.

A spokesperson for the American company said Monday the stability, reliability and fuel efficiency of the Xiali compact car, which will sell for US$10,000, will make it competitive on the American new car market.

Auto experts say China has the capacity to produce all types of motor vehicles, but the medium and high-grade car market is still dominated by foreign brands.

(People's Daily June 11, 2002)

In This Series
Huge Market Seen for Small Cars

Auto Show Revs Up Customers' Desire

Toyota to Help Xiali Develop New Models



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