Chery Auto mulls building light truck, minivan plant in Henan
China's Chery Automobile Co is mulling plans to set up a 1.77 billion yuan ($259 million) facility to produce minivans and light trucks in Kaifeng city, Henan province, reports China Business News on Wednesday, citing an informed people familiar with the plan.
The plant is expected to have an annual capacity of 200,000 minivans, 80,000 light trucks as well as an unnamed amount of agricultural vehicles.
"This move proves that Chery has fully recognized where its major competitive advantage lies and has decided to further tap the growth in the second or even third tier cities," the people said.
According to the report, Chery has been the top selling auto brand in Henan since 2004. Henan province is also Chery's second largest sales market domestically, following only Shandong province.
Chery spokesman Jin Yibo refused to comment on the report but he didn't deny it.
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