FAW Car Corp, the partner of Japan's Mazda Motor Corp, announced it would invest 293 million yuan (US$43.2 million) to locally produce Mazda multi-purpose vehicles (MPV) to complete its product portfolio.
The listed unit of China's second-biggest car maker, FAW Group Corp, plans to make 20,000 Mazda-branded MPVs starting from 2009 after pouring money into new equipment and upgrading existing assembly lines in a plant in Changchun, it said in the latest filing to the Shenzhen stock market.
The move is expected to help FAW win more customers with a complete product line-up. It is now mainly partnered with Mazda to produce the Mazda 6 mid-to-high class sedan, which has been challenged by more competitive rivals such as Toyota's Camry and Honda's Accord.
Although the niche market segment accounts for a small proportion of the overall vehicle market, analysts said it would sustain growth in China's increasingly affluent society.
Half-year sales for MPVs added 4.09 percent to 111,400 units in China, according to the China Association of Automobile Manufacturers.
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