New Study Finds that Chinese Buyers Prefer European over Local Brands

Car buyers’ preferences in China are shifting towards European models and away from domestic and even Japanese vehicles, according to a new study published today by JD Power Asia Pacific. This is the third year that the study takes place.
The latest edition included 65 brands and 161 separate models in nine segments and is based on responses from 4,979 potential buyers of new-vehicles located in 53 cities.

New Study Finds that Chinese Buyers Prefer European over Local Brands

Car buyers’ preferences in China are shifting towards European models and away from domestic and even Japanese vehicles, according to a new study published today by JD Power Asia Pacific. This is the third year that the study takes place.
The latest edition included 65 brands and 161 separate models in nine segments and is based on responses from 4,979 potential buyers of new-vehicles located in 53 cities.

New Study Finds that Chinese Buyers Prefer European over Local Brands

Car buyers’ preferences in China are shifting towards European models and away from domestic and even Japanese vehicles, according to a new study published today by JD Power Asia Pacific. This is the third year that the study takes place.
The latest edition included 65 brands and 161 separate models in nine segments and is based on responses from 4,979 potential buyers of new-vehicles located in 53 cities.

The BYD F6 which is a more luxurious F3

In 2008, BYD made press coverage by showing its F6 DM (dual mode) car at the Detroit Auto Show. Clearly, the car was a prototype, but it gave the world a surprise, becaus e outer China, there was a general idea that china was 20 years behind the developed nations in terms of car technology. Indeed it is true, and still is at this moment.

But what makes BYD stand out from the crowd? Billionaire Warren Buffett invested by October 2008 230 million dollars in the to become electric car manufacturer. What made him do this?

BYD has proven that despite been a newcomer and outsider to the auto industry, it has smartly managed to cut through competition, many many companies failed to do so in China, Lifan has not managed to increase, Bird a Ningbo cell phone manufacturer made a claim to enter the market and gave up months later, not to mention some non auto related supplier like Polarsun in Shenyang (originally making house door parts), ZhongYu (originally making street lighting equipment) from Wuhan still struggle to make it pay. Let's be frank, there is no room for many players and if you enter the market after 2000, it is far too late.

BYD tries to capitalize on its core activity : batteries.

In the coming years, they will market heavily their electric cars their point of differenciation. First they made an announcement about their F3e (for electric), and later showed their F6 DM, and have started to sell their F3 FM in China , with little success until now. The problem is the price and maybe are they coming too soon. Environmental friendly is a very new concept in China, the world's first polluter after the USA.

BYD hopes to change all that. China’s sixth largest automaker provided plug-in hybrid cars to the 2008 Beijing Olympics and now plans on bringing that hybrid, the awkwardly named F3DM, to the U.S.A. for Spring 2012. It still could be an uphill challenge, though.

The fallout from the slump in auto sales after the Global Financial Crisis, the government’s bailouts of two of the Big Three, the liquidation of numerous dealerships and the reduction in hybrid sales that came with the sudden drop in fuel prices is still being felt in much of America’s automotive heartland. Add to that the small market share commanded by hybrid and electric vehicles – just 2.2% worldwide according to JD Power – and BYD may be in over their heads already.

AS Mike Omotoso from JD Power explains:

“Because consumers are wary about electric vehicles and their driving range and batteries, they are even more likely to go with more established companies like G.M. and Nissan. The problem with the Chinese car companies is they are trying to run before they walk.”

Only time will tell if BYD’s U.S. plans end in fruition or failure.

The BYD F6 which is a more luxurious F3

In 2008, BYD made press coverage by showing its F6 DM (dual mode) car at the Detroit Auto Show. Clearly, the car was a prototype, but it gave the world a surprise, becaus e outer China, there was a general idea that china was 20 years behind the developed nations in terms of car technology. Indeed it is true, and still is at this moment.

But what makes BYD stand out from the crowd? Billionaire Warren Buffett invested by October 2008 230 million dollars in the to become electric car manufacturer. What made him do this?

BYD has proven that despite been a newcomer and outsider to the auto industry, it has smartly managed to cut through competition, many many companies failed to do so in China, Lifan has not managed to increase, Bird a Ningbo cell phone manufacturer made a claim to enter the market and gave up months later, not to mention some non auto related supplier like Polarsun in Shenyang (originally making house door parts), ZhongYu (originally making street lighting equipment) from Wuhan still struggle to make it pay. Let's be frank, there is no room for many players and if you enter the market after 2000, it is far too late.

BYD tries to capitalize on its core activity : batteries.

In the coming years, they will market heavily their electric cars their point of differenciation. First they made an announcement about their F3e (for electric), and later showed their F6 DM, and have started to sell their F3 FM in China , with little success until now. The problem is the price and maybe are they coming too soon. Environmental friendly is a very new concept in China, the world's first polluter after the USA.

BYD hopes to change all that. China’s sixth largest automaker provided plug-in hybrid cars to the 2008 Beijing Olympics and now plans on bringing that hybrid, the awkwardly named F3DM, to the U.S.A. for Spring 2012. It still could be an uphill challenge, though.

The fallout from the slump in auto sales after the Global Financial Crisis, the government’s bailouts of two of the Big Three, the liquidation of numerous dealerships and the reduction in hybrid sales that came with the sudden drop in fuel prices is still being felt in much of America’s automotive heartland. Add to that the small market share commanded by hybrid and electric vehicles – just 2.2% worldwide according to JD Power – and BYD may be in over their heads already.

AS Mike Omotoso from JD Power explains:

“Because consumers are wary about electric vehicles and their driving range and batteries, they are even more likely to go with more established companies like G.M. and Nissan. The problem with the Chinese car companies is they are trying to run before they walk.”

Only time will tell if BYD’s U.S. plans end in fruition or failure.

Will China's BYD Bring the F3DM to the U.S. or will this be Just Another Broken Promise?

When it comes to making cars, China is king. We’re talking the world’s largest car market, with over a hundred individual marques. So why is it that there are virtually zero Chinese car manufactures selling cars in the U.S. aka the world’s other largest car market?

So far, China’s “Big Four” (well, the four most visible to those outside of China) have made and broken promises of bringing their vehicles to the North American market. Brilliance, Chery, Nanjing and Geely have all backed down from their plans to open dealerships and factories stateside. So far, not a single car from China's major automakers has touched down on U.S. soil outside a motor show.

Senior analyst Bill Visnic of Edmunds.com explains why: “This isn’t computers or cellphones, where you just get into a big-box store. You need some dealerships, and those things are tremendous investments of time and resources. [The Chinese] thought it was going to be a lot easier than it was.”

BYD hopes to change all that. China’s sixth largest automaker provided plug-in hybrid cars to the 2008 Beijing Olympics and now plans on bringing that hybrid, the awkwardly named F3DM, to the U.S.A. for Spring 2012. It still could be an uphill challenge, though.

The fallout from the slump in auto sales after the Global Financial Crisis, the government’s bailouts of two of the Big Three, the liquidation of numerous dealerships and the reduction in hybrid sales that came with the sudden drop in fuel prices is still being felt in much of America’s automotive heartland. Add to that the small market share commanded by hybrid and electric vehicles – just 2.2% worldwide according to JD Power – and BYD may be in over their heads already.

AS Mike Omotoso from JD Power explains:

“Because consumers are wary about electric vehicles and their driving range and batteries, they are even more likely to go with more established companies like G.M. and Nissan. The problem with the Chinese car companies is they are trying to run before they walk.”

Only time will tell if BYD’s U.S. plans end in fruition or failure.

By Tristan Hankins

Source: New York Times

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