Chongqing Lifan Industry (Group) Co. plans to revive its exports by selling more vehicles this year to countries largely insulated from the global economic recession due to their relatively closed economic systems.

 

Due to the current global economic downturn, "orders from overseas in January and February (this year) have dropped by 30 to 40 percent year-on-year," says Lifan's president Yin Mingshan at a meeting in the southwest China city of Chongqing.

 

The meeting convened Lifan's overseas car distributors. Lifan says it signed orders worth $170 million with its distributors from 30 countries at the meeting.

 

The devaluation of foreign currencies has also caused the decline of Lifan's exports, Yin adds.

 

He cites the Brazil's currency, the real, as an example.

 

The real has devalued by as much as 40 percent against the Chinese yuan, which means Brazilians need to pay a price 40 percent higher than before for a Lifan car, he says.

 

Lifan sold 17,781 vehicles overseas last year, mainly to Russia and countries in the Middle East and Africa.

 

Mark Timber, general manager of Lifan's export division, says the company plans to export at least 25,000 cars this year.

 

While continuing to develop the Russian market, Lifan will strive to explore opportunities in countries with relatively closed economic systems this year, says Timber. 

 

He cited Iran, Venezuela, Cuba and North Korea as examples.

 

Thanks to their relatively closed economies, these countries are much less affected by the global economic recession.

 

Timber says Lifan plans to sell more cars in Iran and Venezuela. "For Cuba and North Korea, we hope we can win some orders from their governments," he adds.

 

According to Timber, Lifan will partner with a local company to start assembling vehicles in Uruguay using completely knocked down kits in July or August this year. The vehicles from the assembly plant will be sold to Brazil and Argentina in the future, he adds.

 

Lifan runs four assembly plants in Russia, Iran, Vietnam and Ethiopia at present.

 

To explore developed markets, Lifan has hired a U.S. company to develop a new model specifically for the U.S. and European markets, says Timber.

 

But the project is still in a very early stage, he adds. He declines to name the U.S. company.

 

Timber confirms Lifan has cooperated with Italian company Martin Motors to sell the Lifan 520 in European countries including Italy, German and France this year.

 

The car will carry Martin Motor's badge. Timber says homologations of the car are almost completed.