China’s automotive giants take on the world with innovative vehicles without a ‘made in China’ price
Chinese automakers are rolling out vehicles set to compete globally with innovative technology and build quality-- and less so on price
China’s domestic automakers are struggling to build brand power on the international stage, despite improvements in quality and design that have made them popular among mainland consumers.
“Chinese automakers have seen significant improvement in quality standards, but many of the brand names are still little-known to the world,” said Michael Yu, managing partner for auto M&A services at Deloitte.
More than a decade ago, quality was the major barrier for Chinese automakers in winning market share at home or selling their cars abroad. But thanks to tie-ups with foreign partners and the Chinese government’s support, Chinese marques have won increasing recognition at home.
Chinese automakers had a 42.21 per cent share of the domestic market for passenger vehicles in the first nine months of the year, up 1.41 percentage points from a year earlier, according to the China Association of Automobile Manufacturers (CAAM).
However, the lack of brand recognition is still a problem when they go global, especially in mature markets such as the US and Germany where long-established brands dominate, Yu said.
Chinese auto exports dropped 11 per cent in the first nine months to 49,300 vehicles from the same period of last year, CAAM data showed.