27 février 2007
Time to develop a Chinese auto brand
Extract from China Daily
Companies with powerful brand names are benefiting the most from globalization. This is particularly true in the auto industry.
Car owners often see their vehicle as an extension of their personality and social status. For that reason, they care more about the brand name of a car than a household item such as a washing machine.
It does not matter where a Mercedes is produced or where its components are sourced; it will always commend a higher premium than, say, a Lexus, although the latter is arguably a better car. There are people willing to pay more for a Jaguar than a Lincoln although both cars ride on the same Ford-developed platform.
Volvo has built up a reputation for safety and many consumers are willing to pay more money to buy its cars although less expensive alternatives have proven to be just as safe. Ferraris look fast in the parking lot. You would want one if you have a few million yuan to blow just to be seen in it.
I could go on but I think I have made the point.
Most of us know that China is a car crazy country. Many economists and auto analysts have predicted that China will overtake Japan within a decade to be the world's second largest car market after the United States.
But has anyone ever wondered why China does not have its own global car brand? Chery is trying hard but its brand value is still behind that of other foreign names and its smaller domestic competitors are not even in its rear view mirror in the branding race.
It is such a pity. When I first visited the Chinese mainland in the late 70s, I rode a Shanghai (the brand) taxi and thought it was really neat. The Beijing Jeeps are as macho or cute, depending on who is looking, as any of those four-wheel-drive derivatives that young people love so much. And, who has not dreamt of riding at the back of a Red Flag limousine with side window curtains drawn. I did.
Those were cars with distinct Chinese characteristics, designed by Chinese engineers and fabricated in Chinese factories.
China's automotive industry struggled in the past because of a small and under-developed domestic market. Domestic sales were simply too small to finance the large investments needed for modern facilities and to develop new models. Entering into joint ventures with the major auto companies in the United States, Europe and Japan has helped kick start a modern auto industry in China.
The effectiveness of this strategy has raised the question of the need for a Chinese brand. This has become a hot topic for discussion among economists, marketing experts and leaders in the auto industry.
If the answer is yes, which I think it should be, this is the time to make a serious bid to design and build cars that will once again proudly wear Chinese brand names.
The domestic market now is certainly large enough to support the development of a few domestic brands. To attract buyers, domestic manufacturers must produce cars that are competitive in all aspects to the foreign brands. Pricing alone is not enough to win market share. A new brand will have to stand the test on overall quality.
If it succeeds, the manufacturer should be able to sell enough cars in this growing market to generate the needed capital for further refinement and development. The ultimate goal must be to produce cars that can compete with the best from Japan and Republic of Korea (ROK) in the global marketplace.
Joint ventures with foreign manufacturers should be encouraged to re-invest a part of their profits into developing China branded cars for the domestic market.
It is understood that some joint venture companies have established design facilities in China. But making minor alterations here and there to make the products more suitable for the mainland market is not enough. These facilities should be equipped to design the entire car.
Developing a new model should not be all that technically challenging. But the cost of tooling up the factory for production is necessarily high, although much of the parts and components, including the engine, can be sourced from outside.
The question is which Chinese auto manufacturer is willing to take the first step.
Before you write off the idea as too risky, think Hyundai. The ROK car maker is giving the powerful Japanese auto giants a run for their money in the US market. Not too long ago, its products were largely dismissed as nothing more than tin boxes on wheels. Now, it is a serious player in the world market.
26 février 2007
Join The Party: Nissan To Invest With Renault, M&M For Indian Plant
Nissan, Renault and Indian automaker Mahindra & Mahindra (M&M) announced Monday that the companies signed an agreement to build a plant in the southern Indian city of Chennai, Tamil Nadu.
The automakers plan to invest $902 million in the new plant, which will have a capacity of 400,000 units per year.
The facility will produce cars and SUVs for Renault, Nissan and M&M, as well as powertrains for Renault and Nissan. Production is expected to begin in the second half of 2009.
Mahindra will control 50 percent and Nissan and Renault will share the remaining 50 percent.
“I welcome this watershed agreement between the three global automotive players and the Tamil Nadu government,” said Thiru M. Karunanidhi, Chief Minister of Communications and Information Technology. “I firmly believe that the project’s commitment to innovation and technology will set new benchmarks for the Indian manufacturing industry and for the state.”
19 février 2007
Development of China's Automotive Industry
A research by University of Michigan
http://www.osat.umich.edu/conferences/JunNiChina.pdf
17 février 2007
Foton (Beiqi) Motor
Beiqi Foton Motor Co., Ltd. (hereinafter referred to as Foton ) founded and invested jointly by 100 corporations in August 28th. 1996. Four automobile brands of "Auman", "View", "Aoling", and "Times" have been brought up by Foton, and development of Foton's automobile industry has covered all kinds of commercial vehicles except for passenger car. Thus a solid foundation has been laid for Foton in getting involved in the development of worldwide automobile industry of the 21 century.
16 février 2007
Chery Automobile
Chery Automobile Co.,Ltd. was founded in 1997 in Wuhu City, P.R.China. Despite its humble beginning, Chery has achieved many unlikely breakthroughs and become the fastest growing independent automaker in China. Chery is committed to developing world-class automobiles via cooperation with top engineering firms such as Lotus Engineering of the U.K, and Mitsubishi Automotive Engineering of Japan, and leading auto designing firms such as Bertone and Pininfarina of Italy. In its relentless pursuit of quality, Chery adopts DURR Paint Systems in its paint shop in 2004. In 2005, as a groundbreaking event for Chinese automotive industry, Chery starts producing China¡¯s first high-performance Euro IV engines in cooperation with AVL List of Austria. In addition, in J.D.Power 2004 China Initial Quality Study, Chery QQ finishes NO.1 in compact car segment. With an ambition to become a global player, Chery has so far launched its products in 29 countries. For the time being, Chery is developing a new line-up of products aiming at auto markets in the U.S and EU. In 2005, a strategic partnership is formed between Chery and Vesionary Vehicles of the USA for launching Chery products in North America in 2007
15 février 2007
BYD Auto
BYD Company Ltd. owns more than 40,000 staff members all over the world with its market value over HKD 15 Billion. BYD AUTO has adhered to the international development road and devoted itself to researching, developing and manufacturing the Fuel vehicle-vehicle and Hybrids-vehicle. Inheriting the car manufacturing elite from the former Tsinchuan Auto Co., LTD, which had a history of several decades, and melting the first-class technology of BYD IT and electronic equipments manufacturing, BYD AUTO has become a world-class auto manufacturing company
14 février 2007
Great Wall Motor (GWM)
GWM owns more than 10 subsidiaries and it currently has about 8,000 employees. At present, products of GWM covers Pickups series, SUV series ,CUV series, motor-homes and special vehicles, etc.
Up to now GWM has achieved the goal to export full range of products to overseas market The R an D Center of GWM has collaborated closely with the well-known designing companies from Europe and Japan, thus making the products go far compared with the same ones of other auto company in the aspects of appearance, safety, environmental protection, energy saving and driving comfort etc. GWM always takes the lead in Chinese automobile range
Chang´an Automobile
ChangAn is a fast-growing group. It has three production bases, one each in the southwest, east and north of China. It cooperated with international auto leaders such as Ford, Mazda and Suzuki and has established several joint ventures in China. They are ChangAn Suzuki Auto Corp. in 1993, ChangAn Ford Auto Corp. in 2001 and ChangAn Ford Nanjing Corp. in 2004. ChangAn also attaches great importance to safety and quality and it is the first company to enforce crash regulations for mini cars in China.
12 février 2007
Beijing Automobile Works (BAW)
Beijing Automobile Works (BAW)
BAW has more than 150 different models vehicles including off-road vehicle/sport utility vehicle, commercial vehicles and special vehicles. As one of the oldest Chinese carmakers, having the famous national auto brand, Beijing Brand, BJ212/121/122 series, BAW has produced more than 1 million vehicles, supporting the development of economy and national defense.
Toyota Planning Factory In India To Build Small Cars
TOKYO (AP) – Toyota Motor Corp. plans to build a new factory in India by 2010 to produce small cars as it tries to tap the growing automobile market in developing countries, a report said Monday.
Japan’s biggest automaker plans to spend $330 million to $413 million on the plant, which will be built near the company’s first assembly plant in Bangalore, the Nikkei business daily reported, without saying how it got the information.
With auto sales slowing in developed markets like the United States and Japan, companies are increasingly turning to developing areas like Brazil, China, Russia and India to ramp up production closer to growth markets.
Toyota has only a 4 percent stake in the Indian auto market, the Nikkei said. Smaller Japanese rival Suzuki, by contrast, has locked up about half the market with its selection of small, fuel-efficient vehicles.
The plant will initially produce 100,000 entry-level, family style vehicles priced at around $6,610, making them the lowest-priced vehicles in Toyota’s lineup, according to the report.
Toyota officials were not immediately available for comment Monday.