AUTOMOTIVE DYNASTY IN THE MAKING.(News)

Byline: GREG KABLE

This year's Beijing auto show once again focused attention on China's burgeoning car industry and its voracious appetite for cars. With sales soaring an unprecedented 30 percent to 6.8 million cars and trucks in 2006, China is set to overtake Japan as the world's second largest car market after North America. Industry analysts predict further bullish growth, with more than 10 million annual sales by 2010. The good news: Increased competition has driven prices down an average of 40 percent in recent years, which is beginning to make car ownership a reality for the vast Chinese middle class. The bad news: A shakeout is on the horizon because it is unlikely the Chinese market will prove big enough to support all the carmakers battling to gain a foothold. Stay tuned.

* The undisputed star among the Chinese manufacturers was Chery-China's automotive export leader and a company likely to form an alliance with Daimler-Chrysler for the production of the Dodge Hornet at one of its low-cost manufacturing plants.

Headlining was the racy Fulwin II concept-a modern looking coupe penned by the newly founded Italian firm Torino Design, headed by former Bertone designers Roberto Piatti and Giuliano Biasio.

Other Cherys of note: A3, a five-door hatchback from Torino Design that's destined for the European market as China's answer to the Volkswagen Golf; Tiggo 5 concept off-roader; and the A5 ISG, a contemporary midsize sedan likely to be China's first mass-produced hybrid.

* Shanghai Automotive Industry Corp. (SAIC) lost its battle to continue using the Rover name, but the company is already pushing its new faux Roewe brand with vigor. SAIC's stand was underpinned by a variety of new Roewe 750 models-essentially face-lifted versions of the eight-year-old Rover 75. SAIC says it plans to export the new models to key world markets.

* China's answer to Mercedes-Benz's Maybach brand and the car of choice among patriotic government officials, Red Flag stunned show goers with a flamboyantly styled concept that parent company FAW (First Automobile Works) says previews a flagship sedan destined to head into production by 2008. The car is based on the same rear-wheel-drive platform as partner Toyota's Japanese-market Crown Majesta, itself heavily related to the Lexus ...