The sales volume of the five-day fair topped 250 million yuan (US$30.12 million).

A Rolls Royce luxury car, valued at 3.98 million yuan (US$479,518), was snapped up by a local business representative. It was the most expensive piece of machinery to change hands at the event, which attracted more than 350,000 people to Guangzhou's newly built gymnasium.

Visitors signed another 7,000 letters of intent for future car sales worth more than 1.2 billion yuan (US$144.58 million).

Major car manufacturers, including Rolls Royce, Mercedes-Benz, BMW, Honda, Toyota, General Motors and Audi, took part in the show with an expectation of expanding their presence in the increasing mainland market.

The success of the event has further fortified the municipal government's determination to turn the city into one of China's major car producers.

Lin Yunhe, vice-mayor of Guangzhou, said his government plans to reach an annual production of more than 500,000 vehicles in 2005 and more than 800,000 in a decade.

Guangzhou's production line will account for one-fifth of the city's total industrial output value by 2005, compared with only 6.1 per cent last year.

The value of Guangzhou's car industry is expected to outstrip 100 billion yuan (US$12 billion) in 2005.

To achieve that goal, Lin said Guangzhou needs foreign financial support and co-operation to further boost its development.

The annual production of sedans will reach 94,000 this year, compared to 64,000 in 2001 when the car output value was 20 billion yuan (US$2.4 billion).

Cars have become a pillar industry in Guangzhou, which has attracted more than 50 overseas automobile and parts manufacturers to set up factories and production bases, Lin said.

Lin said Guangzhou has solid footing to become a new automobile production powerhouse in southern China.

In addition to the city's strong development and manpower resources, Lin's confidence is based on the city's large car market.

More than 5,000 vehicles have been sold each month this year and the co-operation between foreign investors and their local counterparts is huge, Lin said.

Guangzhou Honda Automobile Co Ltd has now reached an annual production capacity of more than 50,000 sedan cars. Its capacity will top 100,000 cars in the coming two years.

(China Daily October 8, 2002)