China’s seven biggest motor vehicle manufacturers are keen on investing in the Philippines and transforming the country as their production hub for the Chinese and other export markets, a move that long-time Japanese motor vehicle investors in the country did not even attempt to pursue.

This developed after Trade and Industry Undersecretary and Board of Investments (BoI) managing head Elmer C. Hernandez secured the investment commitments of the top officials of these companies during his recent meetings in China.

Hernandez identified these firms as Geely Group Co. Ltd., Foton Beiqi Motor Co. Ltd., Jiangling Motors Co. Ltd., Chongqing Lifan Industry Ltd. (Group Co. Ltd.), Chongqing Zongshen Group, Shineray Motorcycles China, Chongqing Yinxiang Motorcycle (Group) Co. Ltd.

“This is a welcome development as we would be having new investors in the motor vehicle sector not just in motor vehicle assembly but parts development as well. The Chinese are serious in making the Philippines as its export hub for other markets,” Hernandez said.

Hernandez said the Chinese would like to pursue their investment plans in the country in joint venture with local businessmen.

Once these commitments are converted into actual investments, the Chinese would be the first motor vehicle investors that would really push for the development of the country’s motor vehicle sector for the exports market.

The Japanese have been here for the longest time but failed to do so or did not even attempt at pursuing. Instead, at least 50 percent of the Japanese cars sold in the country now are imported completely built up units from other ASEAN countries. On the other hand, the Chinese motor vehicle companies are keen on investing here not just for the Chinese market for other markets including ASEAN.

Hernandez said the Chinese firms are now laying down their plans and the BoI is now preparing to welcome these investments.

Geely Automobile, the first independent automobile manufacturer in China, is interested in producing “budget cars” or small cars in the country while Lifan is keen in manufacturing cars in the country.

Geely’s passenger car model lineup includes the Haoqing and Meirie hatchbacks, Uliou and Free Cruiser sedans and Beauty Leopard coupé. In 2006, Geely became the first Chinese car maker to display at the US Detroit auto show. After its entry in Europe, Geely is expected to debut in North America this year.

Founded in 1992, Lifan Industry (Group) Co. Ltd. ( Lifan Group) specializes in R & D for the production of automobile and motorcycle engines. Over the past 16 years, Lifan has matured and diversified. It belongs to the top 50 biggest privately-owned enterprises in China with 13,715 workers.

By 2010, Lifan’s annual production capacity is expected to hit 300,000 CBU units and 400,000 car engines respectively from the present 200,000 and 100,000. To complete its production line and build its competitiveness, Lifan plans to launch SUV, MPV, electric car, and mini-car in progression to supplement the existing passenger car models of LF520, LF520i, LF620 and LF320.

Lifan520 has been exported to 50 countries including Russia, Ukraine, Vietnam, Iran, Algeria, Nigeria, Germany, France, Spain, Brazil, and Columbia with five assembly factories built overseas. The exports of Lifan Group in 2008 were placed at over $600 million.

Foton Motor, one of the 520 key enterprises and one of the backbones in the motor industry in China, has committed to invest into bus and trucks manufacturing in the country.

Its affiliate Foton AUV Bus Company, which has strong R & D division, is capable of producing large- and medium-scale bus.

Jiangling Motors Co. Ltd., the partner of Dreamco in China for trucks manufacturing, also plans to expand its trucks manufacturing operation here.

Jiangling is also known for its flagship motor vehicle brand Landwind. The company has been producing their version of the Ford Transit van in a joint venture with Ford Motor Company since 1997. In 2005, Jiangling started selling Landwind, a sports utility vehicle, to the European markets and became the first Chinese company to sell cars in Europe.

At the 2006 Paris Motor Show, Landwind returned to Europe and displayed an updated version of their sport utility vehicle, now called the X-Pedition, as well as a compact MPV called the Fashion that would compete in the same size class as the Kia Carens.

Hernandez said that three Chinese motorcycle manufacturers Zongshen Group, Shineray and Yinxiang are also keen on expanding their operations here.

Zongshen is currently into the production of electric bikes and is interested in producing bikes here, Hernandez said. Hernandez said that Zongshen is looking for a local partner that would be able to produce the batteries and auto parts components for the vehicle of the future.

Zongshen Group was first established as a specialized technical service company in the motorcycle industry in China. Zongshen was the first service company that passed the ISO9001 International Quality Certification in the Chinese motorcycle industry. Shineray has committed to invest in the assembly of big bikes of above the 250 c.c.