Xiamen King Long United Automotive Industry Co Ltd, a major Chinese bus maker based in southeast China's Fujian province, will use its existing light bus production line to make A+ sedans.

This project is to produce 1.3-liter to 1.6-liter A+ sedans that are independently developed by the bus maker to meet the market needs of developing countries. Therefore, these sedans will be exported to overseas markets.

Sources said that Xiamen King Long United Auto has invested 416 million yuan (US$ 61 million) in its light bus production line, which has an annual output capacity of 30,000 units.

This time, the company will pour 134 million yuan in the sedan project for its R&D and production line improvement. The line to make buses and sedans will reach an annual out 50,000 units.

Some analysts believed that the bus market downturn has pushed King Long to the sedan sector, and others said the local government aims to make King Long a sedan producer as well if the province's only car maker Southeast Motor is acquired by Beijing Auto or Guangzhou Auto.