TaiShang
ELITE MEMBER
- Joined
- Apr 30, 2014
- Messages
- 27,848
- Reaction score
- 70
- Country
- Location
China turns the SUV table | Arab News
While global automakers look at the China as a lucrative market for their vehicles, Chinese car manufacturers have other ideas that may turn the tables on foreign companies and ultimately compete with them in their own markets.
This week witnessed the Shanghai Auto Show, one of the major industry events held in the largest world car market.
Figures from the Chinese market suggest that Chinese automakers are winning in the hottest SUV segment.
They accounted for eight of the ten best-selling SUVs in China during the first quarter this year.
Chinese SUVs more than doubled in the first quarter to overtake foreign companies in the fastest growing segment in the market.
At Shanghai, foreign carmakers tried to fight back with new popular models such as the Toyota RAV4 and Honda’s CR-V.
Toyota also displayed a concept SUV while Hyundai unveiled its revamped Tucson.
The reason for this shift to Chinese vehicles is price differential.
“A significant number of Chinese consumers are looking for a more affordable alternative to premium-priced foreign SUVs,” said Bill Russo, a Shanghai-based managing director at consultant Gao Feng Advisory.
“Foreign automakers now need to price more aggressively as the market matures and becomes more hyper-competitive.”
The average price of the bestselling Chinese SUVs in the first quarter was is 82,900 yuan ($13,380), versus 167,300 yuan for the foreign makes.
The addition of new models is also being accompanied by a surge in production.
Annual output of SUVs in China is estimated to reach more than seven million units in 2018, up from 4.32 million last year.
As industry observers say that Chinese automakers need to make sure that this growth is sustainable and not to put all their eggs in one SUV basket, Chinese SUVs may find growth in other markets outside China.
The Middle East is likely to be a good target with consumers increasingly being price-sensitive.
Such potential move by Chinese carmakers can really hurt foreign manufacturers in the region.
While global automakers look at the China as a lucrative market for their vehicles, Chinese car manufacturers have other ideas that may turn the tables on foreign companies and ultimately compete with them in their own markets.
This week witnessed the Shanghai Auto Show, one of the major industry events held in the largest world car market.
Figures from the Chinese market suggest that Chinese automakers are winning in the hottest SUV segment.
They accounted for eight of the ten best-selling SUVs in China during the first quarter this year.
Chinese SUVs more than doubled in the first quarter to overtake foreign companies in the fastest growing segment in the market.
At Shanghai, foreign carmakers tried to fight back with new popular models such as the Toyota RAV4 and Honda’s CR-V.
Toyota also displayed a concept SUV while Hyundai unveiled its revamped Tucson.
The reason for this shift to Chinese vehicles is price differential.
“A significant number of Chinese consumers are looking for a more affordable alternative to premium-priced foreign SUVs,” said Bill Russo, a Shanghai-based managing director at consultant Gao Feng Advisory.
“Foreign automakers now need to price more aggressively as the market matures and becomes more hyper-competitive.”
The average price of the bestselling Chinese SUVs in the first quarter was is 82,900 yuan ($13,380), versus 167,300 yuan for the foreign makes.
The addition of new models is also being accompanied by a surge in production.
Annual output of SUVs in China is estimated to reach more than seven million units in 2018, up from 4.32 million last year.
As industry observers say that Chinese automakers need to make sure that this growth is sustainable and not to put all their eggs in one SUV basket, Chinese SUVs may find growth in other markets outside China.
The Middle East is likely to be a good target with consumers increasingly being price-sensitive.
Such potential move by Chinese carmakers can really hurt foreign manufacturers in the region.
