Fujian locates in the eastern part of China. The companies of Kinglong and Golden Dragon Van are in this province. It is set to energize the development of its automobile industry, aiming to build an automotive manufacturing base on the west coast of the Taiwan Straits. Experts predict that the annual output will reach 500,000 vehicles by 2010, in an attempt to capture more than 5 per cent of the market. By 2010, three industrial centers are expected to take shape in the middle, south and northwest of the province.

In order to reach the goal, the province will enhance its co-operation with Taiwanese and multinational automobile firms and strengthen automobile enterprises such as SEM, King Long United Automotive Industry Co Ltd and Fuyao Glass Industry Group Co Ltd. Cooperation with Taiwan has been a major driver of the rapid development of Fujian's motor industry over the past decade. For example, as the largest Taiwan-funded automobile enterprise in the mainland, SEM currently has an annual production capacity of 150,000 vehicles, with a soaring sales volume growth of 63 per cent each year on average. New production line is under construction. It is expected to see an output value of 20 billion yuan (US$2.4 billion) by 2010.

Currently, Fujian's motor industry has entered a significant development phase. An auto giant will emerge in the future.