The car brands coming from today’s largest global auto market have been threatening they would move to enter the second biggest auto market in the world for years.
It appears their aspirations are finally ready to be fulfilled, with some of the automakers already searching for partners and devising the necessary business strategies. Speaking of the latter, the executives of the Chinese brands believe entry-level prices will be key to their success. For example, Wu Song, general manager of upcoming US competitor Guangzhou Automobile Group Motor Co. puts the number at 30 percent below rivaling models in the same segment. Wu aims to test the company’s affordable pricing strategy when it launches its first US-bound model, the GS4 crossover – set for an overseas introduction sometime in 2017. The senior executive also says the company is mulling dealers, importers and distributors for the US market. Guangzhou Automobile, also called GAC, is only the latest in a wide range of Chinese automakers playing with the idea of selling Chinese-branded and built cars in the United States.
Similar decisions have been announced by Great Wall Motor – a top producer of SUVs and crossovers in its home market and by BYD Auto Co., partly owned by Warren Buffett’s Berkshire Hathaway and a maker of electric cars. The latter company is already present on the US market, albeit with a factory that produces and sells electric buses. Critics of Chinese brands often point that the marquees lack the qualities associated with US consumer demands, but the fact that they are turning up so late might give them the necessary time to recuperate them.
Via Automotive News