China’s automotive industry has revolutionised over the past decade, from producing basic western clones to making cars that equal the world’s best. As the manufacturing powerhouse of the world, China is also producing them in huge volumes.
But entering an established market as a challenger is a complex operation. Chinese makers will have to contend with buyer wariness, a lack of brand image, trade protectionism and rapid outdatedness. China is viewed with suspicion by many westerners, and its carmakers are similarly hampered by their recent legacy of producing both endorsed and illegal clones of European cars. But with the lessons of the Japanese to learn from, Chinese cars are rapidly advancing to match and exceed existing alternatives.
It was Ford dealers who, in the 1960s, coined the phrase: “Win on Sunday, Sell on Monday”. The phrase is as an adage to attest the fact that if buyers see a car winning a race, they’ll be motivated to go out and buy one. However, in many countries they are subject to high import tariffs. The EU currently imposes a 10% import tariff on each car brought in. And in the US, car imports from China are subject to a 27.5% tariff.
But Tesla has turned this on its head. The Tesla Model S, for example, has seen almost continuous product updates that make it barely recognisable in terms of hardware from a car released in 2012. Chinese automakers have taken note. They are bringing out new models around 30% faster than in most other nations.
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