The Chinese auto industry: new and range of Chinese cars. Overview of the Chinese automotive industry

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2020-05-30 01:20:15

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China has learned to produce cars at the level of the best world brands and is now actively conquering the market. The basis for a successful expansion of Chinese OEMs on a broad range of factors prevailing in the system with a solid Foundation.

Chinese car industry: yesterday and today

In the first half of the 90s the Chinese auto industry was not in the best state – mainly due to the lack of access to competitive technology. In response to this situation the Chinese Government decided to restrict the import of machinery, raising up to 80% duties on imports.

Lineup of Chinese auto

In a car factory in China has an incentive to increase production. From the state it was guaranteed tax incentives. In China went investment, and the production of cars has increased dramatically – so much so that by 2003 it was observed a clear overheating of the market: demand has slowed, prices for new cars began to fall.

Chinese auto industry

The Situation helped work on foreign markets and, as a result, production is not only not fallen into recession, and gained even greater momentum in 2006, China took the third place in terms of production cars (after the U.S. and Japan), and by 2009 had become the world leader in the industry. The model range of Chinese cars began to expand rapidly. Experts predict that by 2020, every third car in the world will wear the brand with residence permit in China. Income growth in China has helped to correct the situation on the domestic market, maintaining offer not only from domestic manufacturers but from foreign suppliers.

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Sales in Russia

Chinese auto industry in Russia is not exotic. According to experts of the automotive market in 2013, sales of brands from China exceeded 100 million units. Increased market share of cars of Chinese origin – it was 3.7% (while in 2012 – 2.6 percent). The most popular brand – LIFAN. Sales growth of the brand in 2013 was 34% compared to 2012, sold 27 467 vehicles.

Chinese car industry in Russia

Second place in sales took the brand Geely (27 263 cars), the increase in comparison with the previous year – 55%. “Bronze” won the brand Great Wall (19 954 car, rising to 39%), the fourth position staked Chery (19 855 machines, growth - 4%). The main reasons for the popularity of brands from China to Russia, the experts call a wide range and low prices. According to analysts, the Chinese auto industry will continue to conquer the Russian market, its share in the distant future may reach 10%.

Lifan

The leader of the Russian sales – Lifan – was founded in 1992. She now produces, in addition to passenger cars, buses and ATVs. Translated from Chinese the name of the firm means “to go to full sail". The first car under this brand appeared in Russia in 2007, and it was a passenger car Lifan Breeze. Among the latest models of the lineup – another modification Lifan Solano received in the salons of the Russian Federation in November 2013. The car has a 106-horsepower engine, equipped with wheels in light alloy, powerful sound system (6 speakers). Main competitors the Chinese car in the segment – Nissan Almera (engine 102 HP), Kia Rio (107 HP), Geely Emgrand (98 HP). All the machines – and in the same price range (429–489,9 thousand rubles). Note that since November 2013, extended warranty Lifan to 5 years (150 thousand kilometers).

Geely

The Company was founded by Li Shufu has been that it is in the top 50 richest people in China with a fortune of 1.5 billion dollars (according to Forbes). In 1986, the entrepreneur started a company to produce components for refrigeration systems. Three years later he began to produce decorative elements of a Magnolia tree, and later switched to producing motorcycles. A few years later, in 1997, Li Shufu has been launched in its factory building cars. A year rolled off the first sample of cars under the brand Geely. This word in Chinese means “happiness”. In 1999, began to build a large factory in Ningbo, and since 2003 the brand started to be sold abroad. Now the company produces about 600 thousand cars per year, they are exported to 46 countries. In 2014 in the Russian salons under the brand Geely will sell two noteworthy car – EX7 (crossover) and SC7 (sedan). The first (to trim the high cost) will be equipped with leather interior, media sensor, Parktronic, front airbags. Among notable options, second car – air conditioning and a modern sound system.

Chinese cars photo

It is Obvious that more and became more competitive Chinese auto industry. Reviews on the use of cars with these options will play, however, a decisive role in the success of these new products – you just need to wait for the start of sales.

Great Wall

the Cars of the Chinese automobile industry

Great Wall Motor (GWM) – the largest private firm in China the production of cars. Founded in 1976 in the province of Hebei. The company started as a manufacturer of small trucks, but over the years grew into a holding company consisting of multiple affiliates (and their functions separated – some collect cars, others produced components). Prior to 1997, GWM has suppliedcars only for the domestic market, but then began to settle and abroad. The greatest demand for a car of this brand is in the United States, Russia, Western Europe and also in South America and Africa. This brand is present in both developed and catching-up markets. Now Great Wall – one of the market leaders in China for the supply of "pickups". In 2003, GWM shares were sold on the stock exchange in Hong Kong. The firm produces hundreds of thousands of cars a year.

Among the notable novelties of samples of this brand – Haval Coupe shown at the Beijing auto show in April 2014. The machine is designed to be a competitor to the BMW X6. Thanks to Great Wall brand Chinese automotive industry became known in Russia. The brand – pioneer of the Russian market.

Chery

The brand – one of the youngest in the segment, which represent the cars of the Chinese automobile industry. The company was founded in 1997 on initiative of the municipality of the city of Wuhu, in Anhui province.

Chinese auto industry reviews

According to officials, the municipality (and the province as a whole) was not an adequate level of industrial production. First, it was decided to build the plant on production of automobile engines. Later, the factory added a pipeline, invested $ 25 million in additional equipment purchased from Ford, and launched a full-fledged production machines. Interesting fact that the name Chery (English in tune with the “cherry”, that is cherry) the company obtained immediately. First, the brand is called in Chinese- “Ki RUY”, which means "special blessing". First, this phrase was transliterally as Qirui, but as in European languages it is hearing are not perceived as a quite habitual, the firm called Chery (and before that was interim version - Cheery). A few of the latest examples of model range of the brand was presented in late 2013. Among them – Chery Tiggo front-wheel drive, manual gearbox with five speeds, a CVT, 139-horsepower engine.

Sales Prospects in Russia

As mentioned above, some experts believe that the Chinese auto industry may take 10% of the Russian market. According to specialists, one of the reasons for optimistic view on the future of brands from China to Russia – wide range of models. In turn, a factor that may slow down the expansion of “Chinese” – is low confidence in the quality of the machines and in some cases not the most positive image. Experts say that automakers from China pay great attention to service, to supply the sales centers with spare parts, and components.

Brand of the Chinese automobile industry

The Main task for the dealers that sell Chinese brands, experts have called information work with buyers: Russians often don't know anything about Chinese names, that they are quite capable to compete with European, Japanese and Korean firms and that the manufacturer provides a full warranty. Among the unusual estimates by industry experts that Chinese car – the same brands in developed countries with a lag of 5 years. It is noted that the quality of cars assembled in China is steadily growing, while prices remain affordable.

Marketing in Chinese

As mentioned above, the Russian motorists in cars from China attracts affordable price. However, it is not only that. It should be noted the proper marketing that the Chinese auto industry holds in Russia. It concerns several areas of work, the key of which – production optimization and improvement of sales channels. For example, Chery several years ago concluded with the Kaliningrad factory «Avtodor» advantageous agreement, which allowed to increase sales in several times. Chinese automakers have managed to sign contracts with leading dealers: «Rolf», “Atlant-M», «AVTOVAZ», «Autoworld», thereby obtaining the same access to sales channels, and leading global brands. The Russian public is accustomed to the fact that there were Chinese cars, photos of which began to meet in advertisements and magazine directories almost everywhere.


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Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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