China's leading car manufacturer SAIC Motor Corp Ltd is gearing up for Shanghai's free trade zone to accelerate its overseas business, sources said.

The Shanghai-based vehicle maker plans to launch a trade company within the city's pilot free trade zone area, the National Business Daily reported on Friday. The trade company will help to lower costs in dealing with overseas businesses.

A source from Shanghai Automotive Industry Corp, parent of SAIC Motor, confirmed that their group is going to open a trade firm for vehicle and parts exports and imports, but refused to disclose further details.

Analysts said the future free trade zone would apply relaxed taxation and foreign currency policies.