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BEIJING, January 1 -- China's auto exports hit a record high of 340,000 units in 2006, more than double 2005's figure, according to the Ministry of Commerce (MOC).

Sedan exports topped 90,000 units, a 200 percent increase on the previous year, said an MOC official.

Customs statistics show that China's vehicle exports surged 120 percent from 78,000 units in 2004 to 173,000 units in 2005, with export volume hitting 1.58 billion U.S. dollars.

"China is aiming to lift the value of its vehicle and auto parts exports to 120 billion U.S. dollars, or 10 percent of the world's total vehicle trading volume in the next 10 years," said Vice-Minister of Commerce Wei Jianguo.

Over the past few years, China's exports of vehicles and parts have grown rapidly. In 2005, exports reached 10.9 billion dollars, an increase of 34 percent on the previous year.

According to analysts, China was expected to produce and sell more than seven million units in 2006 and overtake Germany to become the world's third largest automobile producer.

Supported by government policies, China's automobile industry is expected to forge ahead in 2007.

However, Wei noted that China's exports of vehicles and auto parts made up only 0.7 percent of the world's total vehicle trading volume.

To prevent domestic car makers getting into cutthroat competition and also to weed out companies that are too small to be serious exporters, China has decided to establish export quotas for 2007.

According to the 2007 Catalogue for Export License Management, no company will be able to export automobiles, full sets of car spare parts or car chassis without prior authorization.

China-made automobiles are mainly sold to emerging markets such as the Middle East, Latin America and Russia.