CHANA AUTO COMPANY INVESTS IN SOUTH AFRICA

CHANA AUTO COMPANY INVESTS IN SOUTH AFRICA

It was reported on 14 July that Chana Auto Company (ChangAn), the Chinese state-owned vehicle manufacturer, will invest about R662.4-million in South Africa.

This would happen within the next five years as the company set up a production plant with an annual capacity of more than 50,000 units. Yang Qing, the general manager of Chana International Corporation, told Business Report the investment, expected to create 1000 job opportunities, would be set up in three phases. The establishment of an assembly plant would be the final stage, once Chana had a four percent share in the local market, he said.

Other phases of ChangAn's investment included the setting up of a company to promote Chana sales in South Africa as well as a vehicle financing company with its strategic financial institution partners, including China Construction Bank, Absa and WesBank. According to Business Report, Chana entered the South African market in 2006 through Abrina, a local import and distribution company.

"To date, about 7000 Chana vehicles have been sold into the domestic market," the report said.

ChangAn is China's fourth-largest vehicle manufacturer.

Sapa

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