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Global Marketplace
www.read-tpt.comSeptember
2012
101
Already pouring billions into new factories, Chinese
automakers say they are preparing to escalate their exports
to developing countries. The prevailing optimism seems
justified. A 43-year-old shopper in Santiago, Chile, was
looking to buy a new car after having owned several used
ones. Against the advice of her mechanic, she chose a Chery
S21 over more established (and more expensive) models
from Japanese, European and American companies.
“The price factor is fairly decisive,” she told Mr Bradsher.
“I paid $5,500 new and [fully equipped]. Toyota with similar
features costs around $12,000.”
From the sellers’ side, Steven Wang, the deputy general
manager for exports at Great Wall Motors Co, made the point
that the importing countries “are easy for us to operate in.” In
contrast, he said, Europe has “lots of laws for new entrants,”
as well as a customer base that tends to be loyal to familiar
brands.
›
Annual auto sales in developing countries other than
China have risen by 45 per cent since 2005, to 21.3
million cars and light trucks last year, according to the global
data company LMC Automotive. Including China, emerging
markets passed industrialised countries in 2010 for the first
time in the number of cars and light trucks sold.
Even so, because sticker prices tend to be considerably
higher in industrialised countries that is still the more
lucrative market. But Michael Manley, the head of Chrysler’s
international operations, pointed out that, with so much
growth in developing countries, “You have to be incredibly
aware of the domestic brands” emerging in China.
›
The
Times
’s Mr Bradsher concurs that the Chinese auto
makers pose a potential challenge for the overseas
divisions of companies like General Motors, Ford, Toyota,
Volkswagen and Fiat – all of which are looking to emerging
markets for growth and watching the Chinese contenders with
varying levels of concern.
To what lengths might that concern lead them? Mr Bradsher
wrote, “Western automakers have been buying a wide range
of Chinese cars and then having engineers dismantle them to
study the quality and likely cost of major components.”
Chinese motor
exports are
surging ahead