China Chery sales to hit 1 million by 2010: media

BEIJING (Reuters) - DaimlerChrysler AG's DCXGn.DE partner in China, Chery Automobile Co., said its annual sales would rise to a million automobiles by 2010 from just over 305,000 last year, Xinhua news agency said on Sunday.

"In 2007, Chery will produce its one millionth automobile and will reach annual sales of 1 million autos by 2010," Yin Tongyao, Chery's chief executive was quoted by Xinhua as saying.

The company's car sales climbed 61 percent to 305,236 in 2006, following a 118 percent sales jump in 2005, Xinhua had said earlier.

China has set a goal of promoting exports from its fast-growing auto industry into developed markets, including the United States.

Late last year, the company, based in Anhui province, signed a deal with DaimlerChrysler's Chrysler Group to build small cars under the Chrysler brand for export to global markets.

Chery's exports rose 178 percent to 50,000 cars last year.

In October, Chery signed a memorandum of understanding with Italy's Fiat Auto to supply the Italian maker with 100,000 gasoline engines for cars produced both in China and abroad.

Chery executives have said the company was considering an initial public offering to raise money to fund its expansion.

Chery planned an IPO in 2008, possibly choosing a simultaneous listing in both the mainland A-share market and the Hong Kong market, Xinhua has said.

(US$=7.8 yuan)