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Source: CCTV.com
12-01-2006 10:47




China's home grown car market is booming. This, as more and more Chinese car buyers are choosing to buy cars made right here at home. And car manufacturers are taking advantage of the trend's momentum.

Like many other people in China, Zhang is the proud owner of a Chery QQ, one of China's most popular home made cars. Zhang says the car is fashionable, consumes less petrol than many other competitors and is easy to drive. But the most important factor is the price a QQ goes for only around four thousand US dollars. The car's cost is still the top concern for many car buyers like Mr. Zhang.

Chery QQ car owner Zhang Peng said:"The imported cars are brilliant in many aspects, such as look and engine power. But their prices are also very high. For me, domestically made cars suit me much better."


The Beijing International Automotive Exhibition concluded earlier this week. Amid the dazzling array of cars, top Chinese car manufacturers such as Chery, Great Wall and Brilliance Auto showcased their latest models.

Deputy General Manager of Great Wall Auto Sales Network Corp Dong Ming said:"More and more consumers are paying attention to Chinese brands. The homegrown automakers have prepared for this."

Rapidly improving quality is one of the biggest factors behind the emergence of Chinese-made cars in recent years.

Editor in Chief of Auto Fan Magazine Hu Yan said:"Cars made by Chery and Brilliance Auto nowadays are far better than those made in earlier years. They can even make the engines by themselves


Chinese car brands now account for more than one fifth of the domestic market. The government hopes homemade cars will capture up to sixty percent of the market share, by 2010.

And after securing the domestic car market, the next major step for Chinese car makers will be to build their market overseas. Actually.this has already begun.

In a recent deal. Brilliance Auto agreed to export about one-hundred and sixty-thousand Zhonghua Sedans to Germany over the next five years. That's good news for Chinese car makers. But also an eye-opener.for their European rivals.

The future looks bright for the growing popularity of Chinese cars. And many Chinese car manufacturers are hoping this will become an irreversible trend that will keep China-made cars in the spotlight for a long, long, time.
 

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This is good news. China's car brands are on the rise. I am sure this is just the beginning.

The most important thing is for Chinese automakers to become well established in their home market, which is vast. Once they become strong competitors there, they can compete anywhere in the world.
 

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True but in 15 years time car makers like Cherry risk being seen as cheap cars whilst car makers like Ford will be seen as good middle class cars. Ultimately that could become a problem. The best thing to do would be to have one brand to take on VW and co and one brand to concentrate on volume....
 

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mgrovernut said:
True but in 15 years time car makers like Cherry risk being seen as cheap cars whilst car makers like Ford will be seen as good middle class cars. Ultimately that could become a problem. The best thing to do would be to have one brand to take on VW and co and one brand to concentrate on volume....
Yes, however, considering the fact that Chery only came out with its first car 6 years ago and that it's cars were qualitatively much inferior to foreign carmakers up until only recently, that's a natural outcome.

I think once Chery and other domestic carmakers catch up in quality, which I predict will happen in the next 5 years, then their images will improve as well.
 

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Almost all companies have followed that path and it's only natural that the Chinese car makers will go for critical mass before going for quality.

Would you upgrade your assembly line to produce 1000 cars/ year for a say 5% quality gain for each car or would you invest in expanding your distribution network first so that 100,000 cars manufactured can gain from the same upgrade?
 
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