Chery Automobile Co Ltd, China's fourth largest carmaker, is in talks with Thailand's Yontrakit Group to set up a joint venture assembly plant in Thailand at the beginning of next year, the China Business News reported.

The newspaper quoted sources as saying that total investment in the venture is projected at around 220 mln yuan. The plant's initial annual capacity is expected to be 4,000-5,000 units.

Chery has established seven assembly plants in six foreign countries, including Russia, Ukraine, Iran and Egypt.

Its exports for the first nine months of the year to September increased 220 pct year-on-year to 77,000 units.