China's Dongfeng Motor Group Co  said it sees opportunities for mergers and acquisitions in the global auto sector still reeling from the fallout of the global downturn.

"The company will closely monitor opportunties for overseas acquisitions," chairman Xu Ping told reporters in a news conference on Wednesday.

He added that appreciation of China's currency, the yuan, which many believe will take place in the next few months, would further strengthen Dongfeng's position in making any acquistions.

Dongfeng is the Chinese joint venture partner of Nissan Motor , Honda Motor and PSA Peugoet Citroen.