Business briefing: Chinese auto market booming after rapid recovery from Covid Car News

“Consumers really know their cars now,” he says. “A few years ago China was a supply market, but now it has evolved. You can see it with the quality issues Jaguar Land Rover has had, which it still suffers from. And you can see it with the current extremely negative headlines about the issues with Teslas – although I also think the brand will have the opportunity to recover. Ultimately, it’s a popular EV brand, and it’s important in this market. “

While the dominance of German companies over the premium car sector in China looks solid, Kang highlights the progress of emerging domestic brands as another trend to watch.

“Chinese brands had a 30% Chinese market share just a few years ago, focusing on the lower end of the market. Today it stands at 40% and on a wider variety of vehicle types. This is real progress.

“R&D spending has increased exponentially; quality has taken a leap forward. But just as crucial, Chinese manufacturers quickly added advanced technology to their cars.

“Today, even entry-level models offer connectivity and display features that global brands only offer on high-end cars. It is a strategy that plays on the strengths of Chinese know-how, and it is impactful, especially with young buyers. It could also be a way to differentiate themselves if they go international.

History is less of a role model than ever in these turbulent times, but it’s worth noting that almost every brand that has gone global in the past century has done so through significant sales in their home market. Therefore, with China offering the greatest opportunity for scale bar none, Kang expects international launches to follow.

“Changan, Chery, Geely and Great Wall are the mainstream brands to look for, although they will likely look to emerging markets first, such as South America, Iran and the Middle East, rather than to go directly to the United States and Europe, ”he said. mentionned.

“It is significant that companies like Lynk & Co and Nio can scale faster. Pay attention to their service and support methods: they have a very different approach to how they nurture and develop their customer bases, using digital communications, apps and more. It is not yet certain, but it could differentiate them and put them forward.

More about this article: Read More
This notice was published: 2021-06-13 23:01:23

Leave a Reply

Your email address will not be published. Required fields are marked *