daniel chigunwe
China’s automotive industry has revolutionised over the past decade, from producing basic western clones to making cars that equal the world’s best. As the manufacturing powerhouse of the world, China is also producing them in huge volumes.
However, Chinese cars are facing difficulties in finding buyers in Europe. Imported cars, many of which are Chinese electric vehicles, are piling up at European ports, with some spending up to 18 months in port car parks as manufacturers struggle to get them onto people’s driveways.
Why is this, though? Chinese electric vehicles in particular are getting positive reviews. Having driven them myself, I can attest to them matching, or even exceeding, the well-known European brands in range, quality and technology.
But entering an established market as a challenger is a complex operation. Chinese makers will have to contend with buyer wariness, a lack of brand image, trade protectionism and rapid outdatedness.
Lack of buyer faith
China’s automotive expansion programme draws parallels with the moves made by Japan in the 1960s and 70s. At that time, the product coming from Japan was commendable but lacked the finesse, design and longevity of their western counterparts.
Japanese cars were thought of as tinny, underpowered and susceptible to rusting, as well as looking very generic compared to stylish European designs.
Memories of Japan’s involvement in the second world war were also fresh in (particularly American) buyer’s minds, who were slow to forgive a nation that launched the Pearl Harbour attacks.
However, by constantly focusing on a reliable, relatively cheap and increasingly stylish product, Japan slowly turned this around to become the automotive powerhouse of the 1990s and 2000s.
China is viewed with suspicion by many westerners, and its carmakers are similarly hampered by their recent legacy of producing both endorsed and illegal clones of European cars.
But with the lessons of the Japanese to learn from, Chinese cars are rapidly advancing to match and exceed existing alternatives.
Strategic purchases of brands like Volvo, Lotus and MG have also given China existing brands that are respected and, more importantly, have some of the best engineering knowledge in the world.
Yet, even after buying up western brands, Chinese automakers have proven unable to buy loyalty from existing customers of brands like BMW, Porsche, Ferrari and Ford. For these buyers, the history of the brand in terms of known reliability and even things like motor sport success is something that Chinese makers, like the Japanese, will have to build up over time. − Moneyweb.
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