Chinese automakers are interested in investing in overseas partsmakers as a lack of technology is hindering government plans to develop global players. At present, most of the carmakers are predominately assemblers for overseas automakers.
“What we need most is the core technologies, such as the capacity to design and make engines and gearboxes,” said Zeng Qinghong (曾慶洪), general manager of Guangzhou Automobile Group Co (廣州汽車工業集團), a Chinese partner of Toyota and Honda Motor Co.
The company will consider acquisitions at home and overseas, he added.
“Whether Chinese companies have the management skills needed for overseas investments is the question,” said Zhang Xin, a Guotai Junan Securities Co (國泰君安證券) analyst in Beijing. The small size of the partsmakers — Tong Yang has a market value of about US$440 million — may also limit the benefits of deals, he added.
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