China's Chery Automobile produced its 1 millionth car on Wednesday to become the country's first indigenous automaker to reach the milestone.

The 10-year-old Chery achieved a miracle in the automotive industry in the world by making its first million cars within seven years and nine months, said a statement from the company.

It took Chery about six years to make its first half million cars, and only one year and a half to complete the second half million.

The 1 millionth car is an A3, a four-door hatchback which made its debut at last year's Beijing auto show and was expected to be sold on market later this year.

In contrast with Chery, Sino-German automaker FAW Volkswagen spent 13 years on making its first million cars, while it took more than eight years for Shanghai GM and Guangzhou Honda to build their first million cars.

China's first Sino-foreign automaker Shanghai Volkswagen, established in 1985, turned out its 3.5 millionth car in January 2007.

Chery, the ambitious flag-bearer of Chinese indigenous brands, is currently capable of producing 400,000 cars, 400,000 engines and 300,000 transmission cases a year and plans to raise its annual output to 1 million cars by 2010.

A new plant, which will begin production in October this year, is expected to increase Chery's annual capacity by an additional 300,000 cars.

China currently has 30 sedan manufacturers, nine of which produce more than 200,000 units a year.

Chery, based in the eastern city of Wuhu, sold 232,785 cars in the first seven months of the year, maintaining its position as the country's seventh largest automobile manufacturers and the fourth largest sedan producer.