China auto-parts exporter Norstar Founders Group said it hoped that domestic sales would contribute 20 per cent to its total turnover in the next two to three years, as the mainland's auto market shows bigger potential.

Hong Kong-listed Norstar has generated almost all of its auto parts sales from exporting mainly to the United States, Canada and Europe in the last few years.

However, "the mainland's huge potential in the auto market provides a golden opportunity for us to further boost our sales at home," said Norstar's Chief Executive Officer Zhou Tianbao.

The move came as the mainland becomes the world's second-largest and fastest-growing auto market, outshining lacklustre European and US markets.

With production of axle modules expected to reach 120,000 sets in 2006, which is expected to grow to 200,000 sets and 400,000 sets in 2007 and 2008 respectively, the company hoped to generate a turnover of about HK$400 million (US$51 million) in 2006 just from the sale of axle modules.

"We are aiming to become the global leading auto chassis system provider in the next three years," said Zhou.

The company saw its turnover climb to HK$2.08 billion (US$266 million) at the end of the 2005-06 financial year, an increase of 28.9 per cent year-on-year.