UPDATE 2-Changan Auto claims China's No.3 spot with AVIC deal

* Changan Group to boost auto capacity to 2 mln units/year

* AVIC to get 23 pct stake in enlarged Changan Group

* Changan Group to take over Hafei Auto, Dongan Engine

* China's auto sector consolidation speeds up (Adds analyst comment, Changan statement, details)

By Fang Yan and Jacqueline Wong

SHANGHAI, Nov 10 (Reuters) - The state parent of Chongqing Changan Automobile Co (000625.SZ) has agreed to take over major auto assets from aircraft maker Aviation Industry Corp of China (AVIC), heeding Beijing's calls to speed up restructuring in the fragmented auto industry.

The deal unveiled on Tuesday marks the lastest major consolidation of the world's biggest auto market and will boost Changan to No.3 from No.4 among China's 100-plus car markers.

Changan Automobile Group, a Ford Motor (F.N) partner, will take over minivan maker Harbin Hafei Automobile Industry Group and the China ventures of Suzuki Motor Corp (7269.T) and Mitsubishi Motors Corp (7211.T) from AVIC, Changan said in a statement.

State-owned AVIC will get a 23 percent stake in the enlarged Changan Auto Group in exchange for the assets, which also include Harbin Dongan Auto Engine Co (600178.SS) and Jiangxi Changhe Automobile Co (600372.SS).

Shares in the listed companies involved in the asset transfer were suspended from trade before the announcement.

Chinese automakers are mostly regional players, controlled by local governments eager to build up their own auto industries and provide local jobs, often leading to wasteful investment in excess capacity.

Most of them are competing against each other at the lower end of the market and leaving the lucrative upper end to the manufacturing ventures of global players, such as General Motors [GM.UL] and Volkswagen AG (VOWG.DE).

AIM HIGH

But Changan Auto, which makes Focus and Mondeo sedans in a tie-up with Ford and Mazda Motor (7261.T), is among a growing number of Chinese automakers with global ambitions.

SAIC Motor (600104.SS), a GM and Volkswagen partner, hopes to export its self-made Roewe sedans, and Geely Automobile Holdings (0175.HK) has been selected as the preferred bidder for Ford's Volvo car unit.

"Every company has its own way. Geely hopes to raise its profile by taking over Volvo and Changan wants to be more powerful at home for now," said Boni Sa, an analyst with industry consultancy CSM Worldwide. "It's too early to say which will turn out to be the dark horse."