BAIC Group, the Chinese partner of Daimler AG and Hyundai Motor Co, plans to acquire one or two domestic automakers this year, in a statement released by its chairman, Xu Heyi.

Xu Heyi's statement triggered a wave of speculation as to which car manufacturing firm will be the target of its acquisition. Analysts speculate a small commercial vehicle manufacturer in Zhenjiang, Jiangsu province, could be in the eyes of the giant car maker.

Unless companies acquire a local manufacturer that already owns a production certificate, current Chinese industrial guidelines do not permit existing manufacturers to construct plants in new sites outside their home city. BAIC executives have been in talks with the local government at Jiangsu about a likely reorganization of the Zhenjiang Auto Works to serve as its manufacturing site in East China.

BAIC has also big plans to expand abroad, according to the company.

An executive of BAIC's overseas unit, Dong Haiyang, revealed that the company also have plans to buy a "medium and high-end" European brand.

BAIC is said to build its foundations in Europe through acquisition.