China's military buys FAW's Red Flag cars for official use-media

SHANGHAI Mon May 19, 2014 12:03am EDT

SHANGHAI May 19 (Reuters) - China's military has purchased more than 1,000 FAW Car Co Ltd's Red Flag H7 sedans for official use as part of a move to phase out foreign brands, an official newspaper said on Monday.

Chinese President Xi Jinping has made clear that the country's military should buy indigenous vehicles and it will purchase more Red Flag H7 sedans, according to the PLA Daily, a newspaper owned by the Chinese People's Liberation Army.

The military will phase out foreign vehicles made by companies like Volkswagen AG and Audi, the article said.

The purchase by the military is a boon to state-owned FAW, which launched Red Flag H7 last May as part of efforts to revive the Chinese brand and rival foreign nameplates.

Sales have been sluggish so far and fewer than 3,000 Red Flag sedans were sold last year, according to FAW.

Prior to the Red Flag purchase, China's military also bought FAW's Besturn and Guangzhou Automobile Group Co's Trumpchi cars for official use, according to the PLA Daily.

(Reporting by Samuel Shen and Kazunori Takada; Editing by Matt Driskill)