China : The future is here
Today, we will tackle the automobile industry in China, an economic way by setting a few trends.
The Shanghai Expo Center : the big meeting
It is with pleasure that automakers met themselves Sunday, April 21, 2013 in Shanghai at the Shanghai Expo Center.
Since 2009, China is the first automobile market in the world while in Europe there is a crisis and in USA there is no growth. Nowadays, China appears like the Eldorado for the automobile market and lets hope for an important growth for several years.
Near 800,000 visitors were recorded in the aisle of the Shanghai throughout this week. In recent years, this appointment has become a schowcase for global automotive industry. It must be said that China is clearly a land of opportunity for manufacters who have exhibited nearly 1,300 vehicle models.
Inside of the country : the new market
While the Chinese market is a true extension, growth should move to the West. Indeed, in the region of Shanghai or Beijing the rate of equipment is more than 80 cars per 1,000 inhabitants, while in the West of China most of areas are below 30 cars per 1,000 inhabitants.
So it’s a real new market for the manufactures who don’t want missed.
By having a greater than 100% growth in 2012, Jeep has had its sales exploded and the brand decided to locate quickly in the country by opening a new factory. Jeep manager, Mike manley said “To be successful, you have to produce in China”
To achieve the longest possible time, Jeep has partnered with Guangzhou Auto (already a partner of Fiat in China) to develop a 100% local brand.
Bet on “clean” vehicle
We all have in mind the images of the pollution in China, since few years the Chinese authorities are engaged against the deterioration of the air quality.
In April 2013, China sold 1.84 million vehicles an increase of 13% on an annual basis, China is now the first on the market for car sales.
This is why China is trying to massively expand the implementation of “cleaner” vehicles, but we can notice they don’t sell (it can be noted that only 0.1% of cars sold are “clean”), now China encourages manufacturers to produce less polluting models for the Chinese market.
We can find, for example, BMW and its Chinese partner Brilliance announcing their new brand, this brand will target the upmarket which is the growth industry in China market and will be launched in 2014. It is also in this sector that Nissan go into with a 100% electric car made by the Chinese brand Venucia the e30.
All these innovations shown at the important public have received a good reception and the Chinese governments in its fight against pollution.
More information :
Marketing to China