China's car makers must strengthen efforts to build brands in order to fortify their foothold in the overseas market, senior officials and experts said at an automotive forum in Guangzhou yesterday.

Addressing the 2006 China (Guangzhou) Automotive Development Forum, Zhang Xiaoyu, vice-president of the China Machinery Industry Federation, said domestic car manufacturers should improve the quality of their products by attaching greater importance to R&D and improving innovation if they want to increase their share of the overseas market.

"The present export volume does not matter so much as brands," he said. "Technology-intensive products will mean better profits and will help to build up a good reputation for the products, which will play a decisive role in the final success of the products in the global market."

Zhang's remark pinpoints the fact that many domestic car manufacturers have been undercutting their products for a minor overseas market share instead of improving product quality as part of a long-term strategy.

Latest customs statistics indicate that the price of a China-made sedan was only US$7,039 on average in the global market in the first four months of this year, a continued fall from US$9,161 last year.

Zhang also called upon domestic manufacturers to focus on a few target markets rather than sending their products all over the world.

"To secure a target market, they should make much greater efforts to improve after-sales service," he said. "Buyers will definitely turn to other foreign brands if they find the after-sales service hardly available."

Zhang's comments were backed by senior officials and the senior executives of car joint ventures at the forum.

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