Chinese brands 'not ready' to take on international markets
Source : Chinese brands 'not ready' to take on international markets
Despite their impressive growth, China’s home-market manufacturers need time to establish themselves on the global stage
China’s domestic brands are not yet ready to play on the international stage, according to a senior automotive analyst.
Speaking to Autocar ahead of the Global Automotive Forum in China This kind of week, JFP Holdings managing partner in addition to analyst Jack Perkowski said: “the item takes a while. There are some big constraints internationally, first of all the safety standards. The stricter emission requirements are also a problem. Once you get all which qualified the item’s then about establishing a dealer network. which doesn’t get handled overnight.”
JFP Holdings, a merchant bank based in China, will be an organising partner of the GAF. The annual conference, which This kind of year will be taking place in Chongqing, sees both domestic in addition to international manufacturers in addition to suppliers meet to debate the future of the automotive industry.
Naturally, the expansion of China’s domestic brands will be a big talking point, yet Perkowski believes the country’s home manufacturers need time to develop: “About ten years ago some big players all made big runs at trying to expand, in addition to they found the item was harder than they thought, so they decided to focus on China in addition to improve their game.”
Not helping matters will be the fact which Chinese buyers have yet to be fully persuaded to buy coming from a domestic brand. “the item’s a problem,” said Perkowski “I had one senior executive tell me which no matter what features they put onto a car, the item’s still hard for them to sell a Chinese brand for more than 100,000 Yuan (about £10,500).
“The Chinese consumers are discerning in addition to they know there are companies which have been doing This kind of for a long time.”
While some Chinese types have historically not fared well when faced with Euro-NCAP’s crash test procedures, Chinese start-up brand Qoros made history in 2013 when its 3 Saloon was named the safest car of 2013.
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