Business in China

Topics: Lexus, Japan, Ford Motor Company Pages: 4 (1526 words) Published: February 28, 2013
1. „Launch a New Car Brand in China, Whether You Like It Or Not“ How Government Officials Push Auto Marketers to Add 'Indigenous' Brands. Mike Dunne, 12.04.2011, 2.China's motor industry - Stepping on the gas

Apr 24th 2012, 8:33 by P.C.

Asia and South-America are the most rapidly developing regions in the world. With the biggest population – China – still being #2 in the biggest economy ranking, but they are gaining up and pretty soon are going to be at top place. Therefore that region is full of opportunities and that’s why it is attractive for enterpreneurs and corporations. But where are opportunities, there are threats and weaknessess as well (SWOT). At this time the car industry in China is mainly held by well-known car producers. They are co-operating slightly with local enterpreneurs and corporations, but the brandname and the intellectual rights are only theirs. General Motors (joint with SAIC-GM-Wuling), Honda (joint with Guangzhou Automobile Group Co) and Nissan are the exceptions. By now Volkswagen, Hyundai and Toyota are also creating and expanding joint ventures. And there are lots of others going to do the same. The logic behind this is simple – China wants, that on their local market they would have local, not international brands. That’s the reason to pressurize big brands to create joint ventures with local ones. In return to this „request“, the government is more compliant with all kind of bureaucracy and industrial permits.

So local brands are probably going to grow and move on towards the worldwide markets. (In Estonia they have sold Chinese car – Brilliance – but at the moment the quality is still rubbish and there isn’t marketplace for them in Europe. But improved quality would give them massive advantage and soon they will become threat to all over carproducers throughout...
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