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Dongfeng Motor Corp, parent company of Hong Kong-listed Dongfeng Motor Group Co Ltd said it has set a sales target of 1.3 million units for2008, rising to 1.8 million by 2010.

Dongfeng Motor Corp general manager Xu Ping said at a briefing at the Beijing auto show that revenue is expected to grow to 180 billion yuan ($25.7 billion) this year, compared to 164.8 billion in 2007.

The automaker also plans to complete the acquisition of mini-van producer Hafei Automobile Group - currently controlled by China Aviation Industry Corp II (AVIC II) - within the next two years. Dongfeng began talks with AVIC II on the acquisition last year.

Xu said Dongfeng Motor Corp plans to invest 23 billion yuan between 2008 and 2009 to upgrade its production facilities and finish acquiring Hafei.

Dongfeng Motor Corp is the lone joint venture partner of PSA Peugeot Citroen, which also signed a draft agreement in June last year with Hafei to explore the possibility of setting up a 50-50 joint venture to build passenger vehicles in China.

Xu added that Dongfeng Motor Corp's car unit, which was set up in July with the aim of developing cars carrying its own brand, is expected to start assembly operations at the end of this year.

Dongfeng plans to invest 7.6 billion yuan in the unit, which will have annual capacity of 160,000 units for the first phase and 330,000 units for the second phase. Construction of the second phase is expected to start in 2010.

Xu also confirmed media reports that Dongfeng Motor Group, now listed in Hong Kong, will also list on the mainland, although it has no timetable for doing so.

Dongfeng Motor Corp's output stood at 1.14 million units in 2007, up 21.98 percent.