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Analysts said that "going abroad" is a must for Chinese automakers, especially for long-term development, as domestic brands are being seriously challenged by foreign rivals in their home market.

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Moreover, it is time for homegrown brands to change their going global strategy to local production, instead of exports, they said.

Statistics from the China Association of Automobile Manufacturers show that Chinese homegrown auto brands' combined market share has declined for eight consecutive months as of May, and the declining trend is expected to continue in the near future as well.

"For automakers, globalization should include the whole industry chain, from research, development, manufacture and marketing to after-sales services," said Wang Liusheng, an auto analyst with China Merchants Securities Co Ltd. "Chinese automakers have started to realize this and expand their international foothold with production plants based on exports for a certain period."

Light truck maker JAC Motor has since 2001 set up 13 assembly plants outside China, while Chery Automobile Co Ltd now locally produces products with 16 factories in 15 countries.

"Localized production can also help Chinese automakers get closer to the market and provide better after-sales services, improved customer satisfaction and a better brand image," said Cui Dongshu, deputy secretary-general of China Passenger Car Association.

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