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China Automakers still Stand Outside at Mature Market

2010-02-03    

In the year of 2009, China became the largest auto market in the world. Nearly 52 percent of autos in sale are Chinese brands. In the year of 2010 is coming, many Chinese automakers want to expand their business in overseas market, especial for the North America auto market, the former largest market in the world.


At the beginning, several Chinese automakers wanted to use Mexico as a springboard to get them into the U.S, such as Chongqing Changan Automobile, FAW, Chery, SAIC, etc. One year later, most of them gave up this stragety because of America"s stringent safety and emission standards on motor vehicles. Besides them, high cost of transportation about parts and components from China to Mexico is not acceptable. 


Many Chinese automakers disappeared at Detroit auto show for the past two years, except for BYD Auto Company. BYD finds a new way to open this competitive market. Its plug-in hybrid and the pure electric vehicle grandly expose at the show. However, BYD"s electric vehicles are untested and the infrastructure to support the use of electric vehicles such as battery charging stations is still lacking in the U.S. All of these barriers block Chinese automakers moving forward.


Through field experience, Chinese automakers need to explore another new ways to tap the mature market, such as North America, European Union. Some Chinese auto experts say making the brands to be more and more localized. Maybe it can be worked.