Chinese automakers including Chongqing Changan Auto (000625.SZ) and SAIC Motor (600104.SH) are seeking to deepend ties with foreign joint venture partners to expand overseas, Reuters reported. Changan, which makes cars with JV partners Ford (F.NYSE) and Mazda (7261.TYO), said it is in discussions wtih Ford to tap foreign markets. SAIC has already moved into India with partner General Motors, where it makes Wuling brand mini-trucks and vans. Ford declined to comment on whether it is considering taking Changan’s vehicles abroad. Other foreign carmakers like PSA Peugeot Citroen (PEUP.PA) are also looking to expand partnerships: Peugeot wants to export cars made at its China plants with Dongfeng Motor Group (0489.HK) to Asia and possibly Russia by the end of the year. The change in strategy is driven by China’s increasingly attractive position as a low-cost vehicle manufacturing base and by the decreasing attractive of the domestiic market; auto sales in China have been steadily slowing, and there is an ongoing debate about whether the sector now has serious overcapacity.
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