German luxury car maker BMW said it expects its annual sales in China to reach 100,000 units after 10 years, mainly depending on local production in the world's fastest-growing car market.

Three-quarters of the sales will come from locally produced BMW cars in China, said Guenther Seemann, head of the company's China operations.

"The luxury sedan segment is growing and our new products are very much accepted in China," Seemann said.

The company's joint venture with China Brilliance Auto will start to produce three and five series sedans later this year in Shenyang, capital of northeast China's Liaoning Province.

BMW officials said earlier that the joint venture plans to produce 8,000 BMW cars this year and 30,000 units next year.

Seemann said BMW could export more than 10,000 cars to the Chinese mainland this year for the first time.

Its exports stood at 8,265 cars during the first eight months of this year, including more than 3,000 units of the seven series, he said.

BMW's release of its sales target comes after Mercedes-Benz -- part of the German-US auto giant DaimlerChrysler AG, a major rival of BMW -- clinched a strategic deal on Monday with the Beijing Automotive Industry Holding Co to produce its sedans in Beijing.

Mercedes-Benz is to begin making its sedans in Beijing in 2005 and the annual output should reach 25,000 units by 2012.

The company said its exports to China are also expected to exceed 10,000 units this year, up from 8,000 units last year.

China's luxury sedan market is mainly controlled by the Volkswagen Group subsidiary Audi.

Audi said earlier this year that it plans to increase its sales in China to 80,000 units by 2005, up from this year's expected 50,000 units.

Analysts say Audi will lose a lot of market share in China with the coming of BMW and Mercedes-Benz as it has a weaker brand than its two rivals.

Seemann refused to comment on BMW's rivalry with Mercedes-Benz and Audi.

But he said: "The BMW Group is committed to and confident in the development of the China market. In the next few months, you will see a lot of BMW initiatives in pursuit of a clear leading position in China.

"We just play in the premium segment in China ... We have no facilities and manpower to play in the mass segment in China," he said.

The nation's steady economic growth is expected to lead to a booming car market over the next 10 to 20 years.

BMW also exports its three and five series and the Z4, X5 and Mini Cooper to China.

"China will become the most competitive car market in the world ... as many players will enter," Seemann said.

Other luxury car models are expected to be produced in China, such as Ford Volvos and General Motors' Cadillac series.

(China Daily September 13, 2003)