China has learned to produce cars at the level of the best world brands and is now actively conquering the market. The successful expansion of Chinese machine manufacturers is based on a whole range of factors that form a system with a solid foundation.
Chinese auto industry: yesterday and today
In the first half of the 90s, the Chinese auto industry was not in the best condition, mainly due to the lack of access to competitive technologies. In response to this state of affairs, the PRC government decided to limit the import of imported cars, raising the import duty to 80%.
As a result, automobile factories within China received an incentive to boost production. From the state, they were guaranteed tax benefits. Investments started in China, and car production increased sharply - so much 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 took the third place in terms of the volume of cars produced (after the USA and Japan), and by 2009 it became world leader in the industry. The range of Chinese cars began to expand actively. According to experts, by 2020, every third car in the world will carry a brand with a residence permit in China. The growth of incomes of Chinese people helped to rectify the situation in the domestic market, which withstands the supply not only from domestic producers, but from foreign suppliers.
Sales in Russia
The Chinese auto industry in Russia is no longer exotic. According to experts of the automotive market, in 2013, sales of brands from China exceeded 100 thousand 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 brand sales growth 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 compared to the previous year - 55%. The Great Wall brand won the bronze (19,954 cars, an increase of 39%), Chery staked fourth position (19,855 cars, an increase of 4%). The main reasons for the popularity of brands from China in Russia, experts call a wide range 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 - Lifan company - was founded in 1992. Now she produces, in addition to cars, buses and ATVs. Translated from Chinese, the name of the company means "go full sail." The first car under this brand appeared in Russia in 2007, and it was a Lifan Breeze passenger car. Among the latest models of the lineup is another modification of Lifan Solano , which arrived in the salons of the Russian Federation in November 2013. The machine has a 106-horsepower engine, equipped with alloy wheels on wheels, a powerful audio system (6 speakers). The main competitors of the Chinese car in the segment are Nissan Almera (engine 102 hp), Kia Rio (107 hp), Geely Emgrand (98 hp). All cars are in the same price range (429–489.9 thousand rubles). Note that from November 2013, the Lifan warranty period was increased to 5 years (150 thousand kilometers).
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 (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 switched to the production of motorcycles. A few years later, in 1997, Li Shufu launched the assembly of cars at his factory. A year later, the first model of a car under the Geely brand rolled off the assembly line. This word translated from Chinese means "happiness." 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 noteworthy cars will be sold in Russian salons under the Geely brand - EX7 (crossover) and SC7 (sedan). The first (in complete sets of increased cost) will be equipped with a leather interior, multimedia with a sensor, parking sensors, frontal airbags. Among the notable options of the second car are air conditioning and a modern audio system.
Obviously, the Chinese auto industry is becoming more and more competitive. Feedback on the use of machines with these options will play, however, 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 privately owned car manufacturing company. It was founded in 1976 in Hebei Province. The company began its activities as a manufacturer of small trucks, but over the years has grown into a holding 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 afterwards it began to develop itself 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 catch-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 a stock exchange in Hong Kong. The company produces hundreds of thousands of cars per year.
Among the noteworthy new models of cars of this brand - Haval Coupe, shown at the Beijing Auto Show in April 2014. The car is designed to compete with the BMW X6. Thanks to the Great Wall, the brands of the Chinese automobile industry became known in Russia. This brand is a pioneer of the Russian market.
Chery
This brand is one of the youngest in the segment that represents the cars of the Chinese automobile industry. The company was founded in 1997 on the initiative of the Wuhu City Hall in Anhui Province.
According to officials, the municipality (and the province as a whole) did not have the proper level of industrial production. At first it was decided to build a plant for the production of automobile engines. Later, the factory was supplemented with a conveyor, 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 called in Chinese - “Ki Ryui”, which means “special blessing”. At first, this phrase was transliterated as Qirui, but since it was not quite familiar in European languages, the company was called Chery (and before that there was an intermediate version - Cheery). Several newest models of the brand lineup were presented 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 may occupy 10% of the Russian market. According to experts, one of the reasons for an optimistic view of the future of brands from China in Russia is a wide range. In turn, the factor that can slow down the expansion of the “Chinese” is a low confidence in the quality of the machines and, in some cases, not the most positive image. Experts note that car manufacturers from China pay great attention to service, supplying sales centers with spare parts, components.
The main task for dealers selling Chinese brands, experts call information work with customers: Russians sometimes do not know anything about Chinese brands, that they are quite capable of competing with European, Japanese and Korean companies, as well as 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 gap of 5 years. 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 the affordable price. However, this is not the only point. 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, Chery concluded a profitable agreement with Avtodor Kaliningrad several years ago, which allowed it to increase sales several times. Chinese automakers managed to conclude contracts with leading dealers: Rolf, Atlant-M, AvtoVAZ, Avtomir, thereby gaining the same access to sales channels as leading world brands. The Russian public got used to the fact that there were Chinese cars, photos of which began to be found in advertisements and magazine catalogs almost everywhere.