Xinhua reported that leading private Chinese automaker Chery will set up a joint venture with China-Africa Development Fund to further explore the car market in Africa.

The company, however, did not state a time when the JV would be established.

According to the agreement the Chery Overseas Industrial Investment Co Ltd, as the new company is called will have a registered capital of CNY 1.265 billion with Chery ratio of investment accounting for 55%.

The agreement said the registered capital will eventually be expanded to CNY 3.25 billion.

Mr Yin Tongyue board chairman of Chery Automobile Co Ltd said the JV will take over all Chery existing auto investment and trade businesses in Africa

He said that "The joint venture will set up plants or auto financing companies in major African countries. As the only entity, it will manage and hold the rights and interests of all its projects in Africa."

Chery, based in East China Anhui province, entered the African market in 2003. It sells around 15,000 cars each year in Egypt and South Africa respectively. It also has a CKD plant in Egypt with an annual production of 15,000 cars.

(Sourced from www.chinadaily.com.cn)