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Opportunity for Chinese Brands in USA

5931 Views 8 Replies 8 Participants Last post by  goozlo
American automotive specialist researcher AutoPacific has released the results of a major study of American consumer acceptance of Chinese automotive brands. "Opportunity for Chinese Brands in the USA" details the results of a national mail survey of over 32,000 new car and light truck buyers in the USA.

Without having any Chinese auto brands sold in the USA (yet), about 15% of new car and light truck buyers in the USA would consider purchasing a vehicle from a brand from China. This compares to 16% considering a brand from Korea. Hyundai has been sold in the USA since 1986.

The people who will consider a Chinese brand are highly desirable customers. They tend to be much younger, more affluent for their age, more highly educated, and more likely to be female. They are also more likely to be middle management, health care professionals and administrators.

Clearly, when Chinese vehicles are ready to compete in the USA, the market will be ready for them. At risk are the top tier Japanese brands and Korean marques.
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I don't see how that low of a statistic is large enough to warrant entering the market. I guess I know nothing about market size.. I would consider it as an economical version but I imagine they would never be able to release luxury models until a dramatic image shift occurs.
Compared to a Korean brand I would consider a Chinese brand. Safety is a concern for me, but if it is being sold in the US that means it meets a certain level of safety. I would look at the safety ratings and see if it is good enough, and then it might be an option.
I hope the decision makers in Chery, Geely, BYD and Great Wall never lose their mind to start the exporting to states. Hyundai is the best sample to China automakers to exporting to US, have no idea? Read Hyundai!
North America is far different from Europe.
1. Geography. States alone is the same size of China. Think of the local network setting up and cars/parts distribution. You will see how hard the job to build a similar one in US. Warranty expense could make one run to bankrupt without good design.
2. Market size. How many units did hyundai sold in US for the first year? 160,000! 50% US customers said they would try a China car and each automaker is supposed to be very very careful about this market.
3. Homologation. Not hard but, it's the finnal gate from US, while not the final gate from us.

Rough thoughts...Maybe I will think and write more in the future.
Which ever cars imported from Abroad, it will require to meet NHSTA and DOT to sell in USA.

Crash test, CO2 ULEV etc.

Once passed, it will be available for sale to public. I have no doubt China car will make great hit with self design cars. I doubt any of joint venture car can export to USA where they already have direct importer.

This will leave out many manufacturer in China, but making something new won't be a difficult one from accumulated knowledge and technological advancing from join venture.
JV's products are easier to enter US market. China's growing parts supply capacity will make more and more production overseas shift to the country. The only difference is a mark "Made in China".
May be around 10-20 years later. China car companies need time to improve their car quality and design to match with US, Japan and Europe car makers.
I agree with caroong. US companies are most trustworthy as compared with the china.
Quality is a big matter for the USA market , maybe in some years to come
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