China Car Times, October 28, 2013
Respected China auto analyst Bill Russo gives his five part opinion and outlook on the Chinese commercial vehicle market in this must read report. The Chinese CV world is the polar opposite to the automotive world, consumers base their purchases on best bang for the dollar, nearly all purchases are Chinese brands and foreign brands are the 1% rather than 50+ percent as in the auto industry.
One opening point is extremely note worthy:
Global manufacturers will increasingly be pushed into the luxury “niche”, unless they adjust their business model and develop low-price, as opposed to low-cost products, which are not just “good enough”, but have the right features, durability, more rapid innovation, and lower price to be sold globally. The Chinese market is already highly fragmented, and the pathway to entry for foreign players is not obvious. However, we believe that several market entry options exist as previously noted. MAN’s JV with Sinotruk may be able to crack open the mid-range market in which local OEMs are dominant.
No comments:
Post a Comment