Chery plans Henan plant to tap minibus market

Published: 26 Sep 2009 19:01:32 PST

Shanghai, September 25 (Gasgoo.com) Chery Auto plans to build a 1.77 billion yuan ($259.26 million) plant in central China's Henan province to tap the fast-growing minibus market, CCTV.com reported today, citing local government sources.

Chery President Yin Tongyao recently met in Zhengzhou city with Xu Guangchun, Party chief of Henan province, and agreed to build an auto plant in nearby Kaifeng city with an annual production capacity of 200,000 minibuses, 80,000 light-duty trucks and agricultural machines.

As the central government encourages vehicle sales in the vast countryside, the minibus market is attracting many automakers including Chery Auto. Sales of China-made minibuses surged more than 60% year-on-year to 1.08 million units in the first seven months of this year.

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