Think locally and globally?
- Source: Global Times
- [14:21 January 22 2011]
- Comments
By Chen Xiaomin
Despite the fact that China has been named the world's largest auto market for the last two years, most Chinese automakers don't have the guts to take the plunge into the US, European or Japanese markets, ground zero of the auto culture, and whose consumer are the most demanding.
"Chinese products will not be taken seriously until they compete and succeed in the world's most demanding car markets," Martin Hayes, executive chairman of London-based Automotive PR, wrote in a recent article.
In the article, Hayes analyzes the rise and fall of the British-dominated motor industry, hoping to draw lessons for the "apparently invincible" Chinese motor industry to reflect on.
Hayes said British Leyland (which was once home to profitable marques such as Jaguar and Land Rover) relied heavily on sales to Africa and India, a practice that eventually led to the collapse of the automaker.
The lack of serious competitors and an undemanding consumer base became a breeding ground for complacency that resulted in the automaker failing to recognize the pace of industry improvement in other markets.
The nation's biggest auto exporter, Chery Automobile Co, has 15 overseas plants in operation and exports to more than 80 countries and regions.
But the Anhui-based firm has steered clear of the US and Western Europe, where emissions and safety standards are stricter than those in other parts of the world.
To some domestic carmakers, sales volume is apparently more important than stepping up to the plate and taking on the engineering and marketing challenges in the world's most sought-after and competitive markets.
Shi Qingke, deputy general manager of the company's international department, told the Global Times in earlier interviews that Chinese automakers have experience competing in some international markets, but mostly with each other.
They do so in Africa, Russia and Egypt by engaging in price wars in a bid to win over customers.
Others search for excuses to avoid European market entry like strict emission and safety standards.
