Kanayama said the Jazz cars will also be marketed in Czech Republic and Poland this July.

"Europe is one of the world's most demanding car markets and the Jazz is well received there, which proves China-made cars can be high quality," he said.

Many indigenous carmakers in China are also boosting exports. Last year, Brilliance China Auto, in partnership of BMW, started selling its own-brand cars in Europe.

China's vehicle exports surged by 59 percent to almost 100,000 units in the first quarter of this year, including 25,000 cars, according to industry data.

Kanayama said the appreciation of the renminbi will have a negative impact on Jazz cars in Europe.

"We will further cut costs to deal with" the renminbi's growth, he added.

Honda also has a car venture with Dongfeng in central Chinese city of Wuhan, aimed at the domestic market.

From January to April this year, Honda's China sales climbed 31.1 percent year-on-year to 121,042 vehicles.

Meanwhile, sales of all China-made vehicles reached 2.93 million units, up 21.46 percent.

(China Daily 06/02/2007 page10)

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