Battlefield where the tanks are cars

The assembly line of Changan Automobile Co Ltd in Chongqing. The company is expanding into developed countries and trying to make mid-and high-end vehicles.[Photo/IC]

For Zhu Huarong, competition in China's car industry is akin to war, and in one of its battles domestic automakers are fighting for market share overseas.

"China's domestic car industry is suffering from overcapacity," said Zhu, president of Changan Automobile Co Ltd. "As one of the largest domestic carmakers, we are putting a lot into expanding overseas."

Zhu, 50, said this in Changan's headquarters in the Jiangbei district of Chongqing, one of the most bustling areas of the city.

For successful overseas expansion, three important steps are needed, he said.

First, developing overseas business from less developed countries and regions before moving to developed areas. Second, producing more green energy modes and cars that can attract young people, and third, producing more high-end cars.

"The cars China makes are kind of stereotyped as cheap and low-end. Our ambition is to become a mid- to high-end carmaker and to crack overseas markets."

Zhu, who was once the vice-president of the group and was mainly in charge of overseas business, said Changan wants be the world's best carmaker.

"At the moment our major overseas markets are Africa and Southeast Asia. If we are to become a global car giant we need to expand into developed countries and make mid- and high-end vehicles."

Last year Changan made a profit of 3.5 billion yuan ($561 million), more than 110 percent higher than in 2013, and overseas markets accounted for 5 percent of the company's revenue.

"We are banking on our sales growing overseas in future, but it's hard to say how much they will grow by," Zhu said.

Going overseas presents many challenges in terms of political uncertainties and exchange rate fluctuation, he said.