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As for the Ssang Yong Motors, a Republic of Korea automaker SAIC acquired late 2004, Chen said operation has been improved though the company reported a loss of 10 million yuan (US$1.3 million) last year.

Ssang Yong Motors will focus on cutting costs and improving productivity, quality and service, he added.

With the rapid growth in the number of Chinese citizens who want to have their own cars, Chen said SAIC would continue to turnout new car models in 2007, like other Chinese automakers, to seek higher market share.

In 2006, new vehicles sales in China soared 25.13 percent to 7.22 million units, making the country overtake Japan to become the world's second largest market for new vehicles only after the United States.

Jiang Lei, vice chairman of the China Association of Automobile Manufacturers, said earlier that car sales in China will grow 15 percent to hit eight million units this year.