Facing the International Competition, China's Automobiles Need to Work on ASEAN
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"I don't have much impression of Chinese self-owned brand cars. There are the most cars in Thailand and Japan." said the Thai exhibitor who is participating in the 4th China-ASEAN Automobile, Construction Machinery and Components Expo (Changbo) in Liuzhou, Guangxi, said: Japanese cars account for over 90% of Thai market share.
With the construction of the China-ASEAN Free Trade Area, bilateral auto trade has been effectively promoted, and many Chinese self-owned brand vehicles have entered the ASEAN market in recent years and look forward to occupying a place.
Since 2005, China’s independent car brands Chery, Great Wall, and Geely have entered the ASEAN countries’ strong automobile consumption capacity—Malaysia. In 2013, Great Wall Motors announced that it will invest and build factories in Thailand to export cars to Thailand and other ASEAN countries.
Regarding Bank’s unimpressed state of Chinese cars, it is not surprising that Ahaya Ahmed, Director of the Passenger Vehicles Laboratory at the Institute of Road Safety in Malaysia. “Chinese self-owned brand cars have entered the Malaysian market since 2004, but their share has been less than 1%, and their sales volume has shown a downward trend.†Ahaya Ahmadand said that although Chery Automobile is the first Chinese-owned car dealer in Malaysia, Sales fell from 1,633 units in 2012 to 738 units in 2013.
Similar to China, automobile production and sales in ASEAN countries are mainly occupied by international big brands. “When Chinese independent brands enter the ASEAN market, they must not only comply with the country's policies but also compete with international brands.†Ahaja Ehmand said that if Chinese cars want to achieve good results in ASEAN countries, they must Greener, quality and safety are improved.
Among the ten ASEAN countries, Thailand, Indonesia, and Malaysia are major countries for automobile production and sales. In 2013, the sales volume of the three countries totaled 3.21 million vehicles, accounting for 90.6% of the total sales of ASEAN countries. The three major production and marketing countries are highly concerned with environmental protection technologies and are all committed to the development of green cars. To this end, Malaysia proposed the establishment of an energy-saving automobile center plan, Thailand is committed to the construction of a global green car production center, and Indonesia’s Nissi proposed a low-cost green car program.
Ahaya Ahmand pointed out that Chinese car companies entering the ASEAN market must first meet the standards of various countries in respect of energy saving and emission reduction, reduce emissions and fuel consumption, or use new energy sources instead of traditional energy sources.
In addition to making a fuss about green environmental protection, China's autos need to be guaranteed in terms of vehicle quality and safety. “Chinese cars have always had a great price advantage in ASEAN countries, but consumers value quality and safety most.†Ayaha Ahmed said that before the Chinese motorcycles entered Vietnam, Malaysia and other ASEAN countries, due to the quality The problem has left a bad impression. If you want to increase consumer confidence, you must pass the ASEAN NCAP five-star test standard.
Liuzhou, Guangxi is China's newest emerging automobile city from ASEAN. The city’s deputy director of the Department of Import and Export of Dongfeng Liuqi, Chen Yu, introduced that the company entered the ASEAN market in 1994 and has established more than 30 distribution networks in ASEAN countries. In 2013, Dongfeng Liuzhou Automobile exports 1961 vehicles to ASEAN. Vehicle.
With a population of 600 million, ASEAN has achieved an annual growth rate of over 5% in the automotive market in recent years and is expected to become the fifth largest automobile market in the world in 2019. Today, China-ASEAN is working to build an upgraded version of the free trade zone.
"With the widening and deepening of bilateral economic and trade cooperation, tariff barriers have gradually broken down. If Chinese autonomous brand vehicles can solve their own problems, the prospects for entering the ASEAN market are good." Researcher and Regional Institute for Asia-Pacific and Global Strategy, Chinese Academy of Social Sciences Wang Yu, director of the cooperative research department, said.