Foreign cars win market share in PRC

Agoraphobic · Apr 9, 2014

China's auto market is likely to be the biggest in the world today. Despite availability of local brands, nationalist sentiments give in to passion for foreign makes.

Cheers!

China’s Embrace of Foreign Cars

By KEITH BRADSHERAPRIL 8, 2014

CHONGQING, China — For more than a decade, Chinese automakers have been talking about starting large-scale exports to North America and Europe, prompting periodic worries in the West that companies like General Motors, Ford and Volkswagen might be crippled by Chinese competition the way they were by Japanese imports a generation ago.
Now there are calls for protectionism, but from an unexpected direction: the biggest, most politically influential Chinese automakers.
Multinational corporations are steadily clawing market share from Chinese brands in their home market, as a succession of global brands have pushed their way into China. The latest insurgent is Ford Motor, which has a joint venture based here in Chongqing and has nearly doubled its market share to 4.5 percent in the last two years by introducing new models and expanding output, selling more than 100,000 cars and light truck in March for the first time in a single month. Ford plans to double production again in the coming year by opening two more assembly plants and one of the world’s largest automatic transmission factories...........................

For the full article, please click below URL:

http://www.nytimes.com/2014/04/09/b...f-foreign-cars.html?hpw&rref=automobiles&_r=0

Ash007 · Apr 9, 2014

I see lambors, Ferrari, porche, Mercedes s class here on a daily basis here. China indeed has a lot of imported cars.

yellowarse · Apr 9, 2014

Ash007 said:
I see lambors, Ferrari, porche, Mercedes s class here on a daily basis here. China indeed has a lot of imported cars.

My colleague in Chengdu says he sees more Ferraris, Lambos and Porsches there than in Singapore. Go figure.

Agoraphobic · Apr 9, 2014

For a little island, Sg has a large ratio of exotic supercars. Even for the regular commuter, the proportion of luxury brands is tilted in favour of the more expensive brands. In my parking lot, the are definitely more BMWs and Volvos than Camrys and Accords. But one would think China is different. Having a domestic car industry, one would expect local brands to dominate, but that is somehow not true from the report.

Cheers!

Ash007 said:
I see lambors, Ferrari, porche, Mercedes s class here on a daily basis here. China indeed has a lot of imported cars.

Agoraphobic · Apr 9, 2014

I heard sometime ago too that the average age of Ferrari owners in the world is 45. In China, that age is 35. It is a full fledged capitalist country.

Cheers!

Ash007 said:
I see lambors, Ferrari, porche, Mercedes s class here on a daily basis here. China indeed has a lot of imported cars.

yellowarse · Apr 9, 2014

Agoraphobic said:
For a little island, Sg has a large ratio of exotic supercars. Even for the regular commuter, the proportion of luxury brands is tilted in favour of the more expensive brands. In my parking lot, the are definitely more BMWs and Volvos than Camrys and Accords. But one would think China is different. Having a domestic car industry, one would expect local brands to dominate, but that is somehow not true from the report.

The Chinese are not as nationalistic as the Koreans or Japs when it comes to consumer brands. Plus their nouveau riche status obliges them to show off in expensive European marques.

When I was in Korea, I saw mainly Hyundais and some Kias and Ssangyongs. Those who buy foreign makes choose upmarket brands for prestige. Most common European make is BMW. Korean friend told me that some who could afford European cars still buy Korean out of loyalty.

As for the Japs, you can count the number of foreign makes on your 10 fingers when you walk on the streets of Tokyo. One of the reasons why Toyota is still the largest carmaker in the world.

yellowarse · Apr 9, 2014

Agoraphobic said:
I heard sometime ago too that the average age of Ferrari owners in the world is 45. In China, that age is 35. It is a full fledged capitalist country.

China is now not only the world's largest auto market, it's also the largest Ferrari market. It contributes 28% to Ferrari's turnover. US is #2 with 20% (2012 figures).

laksaboy · Apr 9, 2014

I noticed that Tiongs have a strange liking for American cars e.g. Chevrolet. When GM and the others were on the brink of collapse it was the China market that kept them going.

yellowarse · Apr 9, 2014

laksaboy said:
I noticed that Tiongs have a strange liking for American cars e.g. Chevrolet. When GM and the others were on the brink of collapse it was the China market that kept them going.

It's the nouveau riche philosophy of 'foreign is better'. Also, the indigenous cars currently can't compete on quality with local JV and imported cars.

Give them another 30 years and they will go local and opt for quality in place of brand name, like the Japs and their Muji brand today.

laksaboy · Apr 9, 2014

yellowarse said:
It's the nouveau riche philosophy of 'foreign is better'. Also, the indigenous cars currently can't compete on quality with local JV and imported cars.

Give them another 30 years and they will go local and opt for quality in place of brand name, like the Japs and their Muji brand today.

Foreign cars are better... but American cars? :confused:

yellowarse · Apr 9, 2014

laksaboy said:
Foreign cars are better... but American cars?

Actually if you look at the annual J.D. Power ratings for reliability in the US, the Japs consistently come out on top, followed by US makes. The Europeans make desirable cars – fun to drive, good handling, powerful, great design (Italians), hi-tech, safe – but score poorly on reliability.

That's why when I drive overseas, I never choose a European car. It's either Toyota, or Ford/GM (in the US & Canada).

Agoraphobic · Apr 9, 2014

I suppose Chinese are nationalistic to the extent that they do not want their country to be bullied like during the last century. For personal things, if it gives them prestige, most will go for that. I respect the Japs for their engineering and commitment to good workmanship and this shows in their goods marketed. Those guys really put their heart and soul into everything they make, from musical instruments, to stereo sets, even packaged noodles. As for the Koreans, I am glad that they are here - to compete with the Japs and give them a run for the money.

Cheers!

yellowarse said:
The Chinese are not as nationalistic as the Koreans or Japs when it comes to consumer brands. Plus their nouveau riche status obliges them to show off in expensive European marques.

When I was in Korea, I saw mainly Hyundais and some Kias and Ssangyongs. Those who buy foreign makes choose upmarket brands for prestige. Most common European make is BMW. Korean friend told me that some who could afford European cars still buy Korean out of loyalty.

As for the Japs, you can count the number of foreign makes on your 10 fingers when you walk on the streets of Tokyo. One of the reasons why Toyota is still the largest carmaker in the world.

Ash007 · Apr 9, 2014

its historical. the last emperor and communist party official car is based on the buick i think.

laksaboy said:
Foreign cars are better... but American cars?

Agoraphobic · Apr 9, 2014

With that population base, and no religious restrictions, China is potentially the largest market for everything that can be sold. I just worry for the day that their middle-class consumer reaches the purchasing capacity of present day middle-class Singaporeans. The world resources won't be able to meet that demand, and even if it does, everyone else will be priced out.

Cheers!

yellowarse said:
China is now not only the world's largest auto market, it's also the largest Ferrari market. It contributes 28% to Ferrari's turnover. US is #2 with 20% (2012 figures).

Agoraphobic · Apr 9, 2014

It was an American who told me this once, "I will buy American made, if they make it well." That guy drove a Subaru. Their industry is plaqued by union problems, high wage demands, reliability recalls, and better foreign competition. The generation that was lured by American made V8 muscle cars is growing old and the new generation don't give a shit about the nostalgia of Yankee muscle cars. Besides, after "Fast and Furious" the hotrods are now Civics, Volkwagen GTIs, Subarus, and BM 3 series.

Cheers!

laksaboy said:
Foreign cars are better... but American cars?

Royalblood · Apr 9, 2014

Ash007 said:
its historical. the last emperor and communist party official car is based on the buick i think.

u referring to the Chinese Red Flag vehicle? Dun think there was any Chinese made luxury vehicle during the last emperor era, and the Chinese Red Flag marque only come into existence in the late 50s.

Earlier versions of it were of based on american design while the modern ones are based on the Japanese.

If i am not wrong, the Central government recently made an annoucement to revive the Chinese Red Flag as the official government car, replacing the Audis.

sleaguepunter · Apr 9, 2014

laksaboy said:
I noticed that Tiongs have a strange liking for American cars e.g. Chevrolet. When GM and the others were on the brink of collapse it was the China market that kept them going.

chevrolet are not american, they are just rebradged korean cars Daewoo. They popular in china because it is cheap as it share the same factories as local brands such as Wuling and Baojun as they are all GM subsidaries.

most beemer, VW and audi are made in china. joint ventures between the conti brands and china local manufacturers.

sleaguepunter · Apr 9, 2014

Ash007 said:
its historical. the last emperor and communist party official car is based on the buick i think.

not buick, chrysler.

congo9 · Apr 9, 2014

When other foreign Auto Makers has many years of experience building cars, you think you can just open your new shop manufacture and market your car ? Ridiculous !

Agoraphobic said:
China's auto market is likely to be the biggest in the world today. Despite availability of local brands, nationalist sentiments give in to passion for foreign makes.

Cheers!

China’s Embrace of Foreign Cars

By KEITH BRADSHERAPRIL 8, 2014

CHONGQING, China — For more than a decade, Chinese automakers have been talking about starting large-scale exports to North America and Europe, prompting periodic worries in the West that companies like General Motors, Ford and Volkswagen might be crippled by Chinese competition the way they were by Japanese imports a generation ago.
Now there are calls for protectionism, but from an unexpected direction: the biggest, most politically influential Chinese automakers.
Multinational corporations are steadily clawing market share from Chinese brands in their home market, as a succession of global brands have pushed their way into China. The latest insurgent is Ford Motor, which has a joint venture based here in Chongqing and has nearly doubled its market share to 4.5 percent in the last two years by introducing new models and expanding output, selling more than 100,000 cars and light truck in March for the first time in a single month. Ford plans to double production again in the coming year by opening two more assembly plants and one of the world’s largest automatic transmission factories...........................

For the full article, please click below URL:

http://www.nytimes.com/2014/04/09/b...f-foreign-cars.html?hpw&rref=automobiles&_r=0

Agoraphobic · Apr 9, 2014

Proton sells well in their its home country. Actually, very well despite its low reputation and late entry into the market.

Cheers!

congo9 said:
When other foreign Auto Makers has many years of experience building cars, you think you can just open your new shop manufacture and market your car ? Ridiculous !

Foreign cars win market share in PRC

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