The Chinese new car market is one of the fastest growing in the world, and local automakers on the Chinese mainland are churning out hundreds of thousands of new vehicles to keep up with the rising domestic demand.
But exports are also becoming an increasingly important part of the China's automotive industry, rising some 80 per cent last year.
A number of Chinese car makers already have plans well under way to export low cost vehicles into Europe and the Americas, and it's only a matter of time before Australia gets its first Chinese car, replacing the Koreans as the budget leaders.
After its recent split with German luxury marque Daimler (Mercedes), American brand Chrysler has teamed up with Chinese car brand Chery, and the first Chinese cars are expected to make their way to America next year.
Last week in Beijing the president of the Chery car company, Yin Tongyao, said that it would begin selling its super-cheap A1 hatchback in America in the first quarter of 2008, in an alliance with Chrysler.
The Chery A1 will be rebadged as a Dodge or a Chrysler and after its North American debut, it will sold in Latin America and Eastern Europe by the end of the 2008, according to Tom LaSorda,Chrysler's CEO.
This would make the A1, a 5-door small hatchback, the first Chinese car sold on American soil.
"As part of Chrysler's global transformation, we are finding new ways to bring vehicles to market - faster, more efficiently, with less costs and the same high quality standards," LaSorda stated.
Quality control and safety issues may need to be addressed before the cars reach North America, and following its roll out of numerous cars in Australia in last three years, Chrysler could also be the first automaker to introduce Chinese automotive product in Australia as well.
The Chrysler A1 would give the Chrysler/Dodge brand a cost-effective entry-level small car in Australia with which to compete with the Korean-built Holden Barina and Hyundai Getz - at least on price - and would provide a huge boost to Chrysler's already positive Australian sales trend.
Powered by a 1.3-litre engine, the A1 is expected to sell for around $10,000 in the US. The A1 in its current (Chinese market) form outputs a claimed 61kW of power @ 6000rpm and 114Nm of torque @ 3000rpm, which are exceptional figures for an engine of this size. It's got disc brakes on the front axle and drums on the rear, and has a claimed combined cycle fuel economy figure of 4.6L/100km, on par with most hybrid small cars.
The Chinese automotive industry has grown incredibly quickly and if the 2006 Shanghai Motor Show was anything to go by, the Chinese car market will cater for almost every niche, from compact AWDs, to 2-seater sports cars, and more traditional cars like Camry-rivalling mid-sized sedans and small cars like the Chery A1.
The Chery A1 (pictured) will be
rebbadged as a Dodge and sold
in North America at next to nix