Brilliance gains most in 8 months on new car model

June 2 (Bloomberg) -- Brilliance China Automotive Holdings Ltd., the local partner of Bayerische Motoren Werke (BMW) AG, rose the most in eight months in Hong Kong trading on expectations a new car would boost earnings.

The automaker rose 7.4 percent to HK$1.30 at the 12:30 p.m. lunch break. The benchmark Hang Seng Index climbed 1.3 percent.

Brilliance debuted its fourth self-developed car, the Junjie FRV hatchback, two days ago, in a bid to boost sales in Asia's largest auto market. BMW also began selling imported 1- Series cars in China today, spurring speculation it may eventually build the model with Brilliance in the local market.

"The FRV will bring in real money,'' said Ricon Xia, an analyst at Daiwa Associate Holdings Ltd. in Shanghai. "There is also the prospect of local production of BMW 1-Series cars in the future.''

The 1-6 liter FRV is priced between 65,800 yuan ($9,500) and 83,800 yuan. Brilliance, based in Hong Kong, spent about 1 billion yuan developing the car.

BMW's imported 1-Series cars cost from 273,000 yuan to 445,000 yuan, the automaker said in an e-mailed statement today. The model is offered in three versions with engines ranging from 2-liters to 3-liters.

The 1-Series may eventually go into production in China if imported ones sell well, China Business News said last month, citing the head of Brilliance, Qi Yumin. The company's venture with Munich-based BMW currently builds 3-Series and 5-Series sedans.