Chinese auto industry: novelties and lineup of Chinese cars. Overview of the Chinese Automotive Industry

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

China has learned to produce cars at the level of the world's best brands and is now actively conquering the market. The successful expansion of Chinese machine manufacturers is based on a complex of factors that form a system with a solid foundation.

Chinese Automotive Industry: Yesterday and Today

In the first half of the 90s, the Chinese auto industry was not in the best condition - mainly due to lack of access to competitive technologies. In response to this state of affairs, the Chinese government decided to limit the import of imported cars by raising import duties to 80%.

As a result, car factories inside China have received an incentive to increase production. They were guaranteed tax breaks by the state. Investments began to flow into the PRC, and car production increased sharply - so much so that by 2003 a clear overheating of the market began to be observed: demand slowed down, prices for new cars began to fall.

The situation was helped by work in foreign markets and, as a result, production not only did not fall into a recession, but gained even more impressive momentum: in 2006, China tookthird place in terms of car production (after the USA and Japan), and by 2009 became the world leader in the industry. The lineup of Chinese cars began to expand actively. Experts predict that by 2020 every third car in the world will carry a brand with a residence permit in China. Income growth for Chinese residents has helped improve the situation in the domestic market, which can withstand supply not only from domestic producers, but also from imported suppliers.

Sales in Russia

The Chinese auto industry in Russia is no longer exotic. According to experts in the automotive market, in 2013, sales of brands from China exceeded 100,000 units. The market share of cars of Chinese origin also increased - it amounted to 3.7% (while in 2012 - 2.6%). The most popular brand is LIFAN. The sales growth of the brand in 2013 amounted to 34% compared to 2012, 27,467 cars were sold.

The second place in sales was taken by the Geely brand (27,263 cars), an increase of 55% compared to the previous year. "Bronze" was won by the Great Wall brand (19,954 cars, growth - 39%), the fourth position was staked out by Chery (19,855 cars, growth - 4%). The main reasons for the popularity of brands from China in Russia, experts call a wide range of models 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 Russian sales - the company Lifan - was founded in 1992. Now it produces, in addition to cars, buses and ATVs. Translated fromThe Chinese name of the firm means "to go under full sail". The first car under this brand appeared in Russia in 2007, and it was a Lifan Breeze passenger car. Among the newest models of the model range is another modification of the Lifan Solano, which entered the salons of the Russian Federation in November 2013. The car has a 106-horsepower engine, is equipped with light alloy wheels, a powerful audio system (6 speakers). The main competitors of the Chinese car in the segment are Nissan Almera (102 hp engine), Kia Rio (107 hp), Geely Emgrand (98 hp). All cars are in the same price range (429–489.9 thousand rubles). Note that since November 2013, the Lifan warranty period has been extended to 5 years (150,000 km).

Geely

The company was founded by Li Shufu, who is now in the top 50 richest people in China with a fortune of 1.5 billion dollars (according to Forbes). In 1986, the entrepreneur opened a company for the production of components for refrigeration units. Three years later, he began to produce decorative elements from magnolia wood, and later moved on to the production of motorcycles. A few years later, in 1997, Li Shufu started assembling cars at his factory. A year later, the first sample of a car under the Geely brand came off the assembly line. This word means "happiness" in Chinese. In 1999, a large factory in Ningbo began to be built, and since 2003, the brand began to be sold abroad. Now the company produces about 600 thousand cars annually, they are exported to 46 countries. In 2014, two remarkable cars will be sold in Russian showrooms under the Geely brand - EX7 (crossover) and SC7(sedan). The first one (in higher cost trim levels) will be equipped with a leather interior, multimedia with a sensor, parking sensors, and frontal airbags. Notable options for the second car include air conditioning and a state-of-the-art audio system.

Obviously, the Chinese auto industry is becoming more and more competitive. Feedback on the use of machines with these options will also play a decisive role in the success of these new products - you just have to wait for the start of sales.

Great Wall

Great Wall Motor (GWM) is China's largest private company in the automotive industry. Founded in 1976 in Hebei Province. The company began as a manufacturer of small trucks, but over the years has grown into a holding company consisting of many subsidiaries (their functions are divided - some assemble cars, others produce components). Until 1997, GWM supplied cars only to the domestic market, but after that it began to develop abroad. The greatest demand for cars of this brand is observed in the USA, Russia, Western Europe, as well as in the countries of South America and Africa. This brand is present in both developed and catching-up markets. Now Great Wall is one of the leaders in the Chinese market for the supply of pickups. In 2003, GWM shares began to be traded on the stock exchange in Hong Kong. The company produces hundreds of thousands of cars a year.

Among the noteworthy new models of cars of this brand is Haval Coupe, shown at the Beijing Motor Show inApril 2014. The car is designed to compete with the BMW X6. Thanks to the Great Wall, the brands of the Chinese car industry have become known in Russia. This brand is a pioneer in the Russian market.

Chery

This brand is one of the youngest in the segment represented by Chinese automobiles. The company was founded in 1997 at the initiative of the city of Wuhu, in Anhui province.

According to officials, the municipality (and the province as a whole) did not have the proper level of industrial production. First, it was decided to build a plant for the production of automobile engines. Later, the factory was supplemented with an assembly line, invested $ 25 million in additional equipment purchased from Ford, and launched a full-fledged production of cars. An interesting fact is that the company did not immediately receive the name Chery (consonant with the English “cherry”, that is, cherry). At first, the brand was named in Chinese - "ki ryui", which means "special blessing". At first, this phrase was transliterated as Qirui, but since it was not quite familiar to the ear in European languages, the company was called Chery (and before that there was an intermediate version - Cheery). Several of the latest models of the brand's lineup were introduced at the end of 2013. Among them - Chery Tiggo with front-wheel drive, five-speed manual transmission, CVT, 139-horsepower engine.

Prospects for sales in Russia

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

The main task for dealers selling Chinese brands, according to experts, is information work with buyers: Russians sometimes do not know anything about Chinese brands, that they are quite capable of competing with European, Japanese and Korean firms, and also about that the manufacturer provides a full warranty. Among the unusual assessments by market experts is that Chinese cars are the same brands of developed countries with a 5-year lag. It is noted that the quality of cars assembled in China is steadily growing, and prices remain affordable.

Chinese Marketing

As mentioned above, Russian motorists in cars from China are attracted, first of all, by an affordable price. However, this is not the only thing. It is worth noting the competent marketing that the Chinese auto industry conducts in Russia. This applies to several areas of work, the key of which are the optimization of production and the improvement of sales channels. For example, several years ago Chery entered into a profitable agreement with the Avtodor plant in Kaliningrad, which made it possible to increase sales by several times. Chinese automakers have managed to conclude contracts with leading dealers:Rolf, Atlant-M, AvtoVAZ, Avtomir, thus gaining the same access to sales channels as the world's leading brands. The Russian public is used to the fact that Chinese cars have appeared, the photos of which have become found in advertisements and magazine catalogs almost everywhere.