The deal will be inked with Bavarian Auto Group.

Production of the two-liter car will begin at the end of August at a plant owned by Bavarian Auto with components and spare parts shipped from China, the China Daily said. The move makes Brilliance the second Chinese automaker to produce its own brand of cars overseas, following Chery Automobile, which began assembling its cars late last year in Iran with an Iranian partner.

Lu Qiang, an official at Hong Kong-listed Brilliance, said it was also negotiating with companies from Iran, Russia, Vietnam and Malaysia to assemble its cars in those countries. ``We attach great importance to the cultivation of the overseas market ... We have established the systems of choosing overseas agents, overseas sales and services,'' Brilliance said.

``We believe, along with the start of the project in Egypt, Zhonghua sedans will be built all over the world in the near future.''

The company said it has chosen six agents in the Middle East and Africa to sell its cars.

``To go overseas is a new strategy for Chinese automakers like Brilliance and Chery as they are too weak to compete with foreign auto giants all round in the domestic market, at least now and in the near future,'' the newspaper cited Qian Pingfan, an industrial economist, as saying.

``Most of their target overseas markets are not priorities for foreign auto giants.''

Almost all of world's major automakers have formed joint ventures in China with more than 80 percent of China's car market accounted for by brands made by foreign automakers such as Volkswagen, General Motors and Toyota. AGENCE FRANCE-PRESSE