Finally the much anticipated Worldwide May 2013 Roundup is here! First a bit of overview of the largest markets with a very contrasted picture this month: China (+9%), the USA (+8%) and Brazil (+10%) are all up significantly while Japan (-9%), Germany (-10%) and Russia (-12%) all have full brakes on.
If last month the Toyota RAV4 was under the spotlight, in May we witness an interesting trend across a few European countries: whether it is a coincidence or not is something that will become clearer as the year goes by, but it would appear that European consumers have been very patriotic this month…
The first 4 Parts in this series have shown Chinese manufacturers securing the less developed markets in each region as springboards to expand further. Less developed means smaller and less sophisticated but also less regulated as far as pollution and safety are concerned. These last two aspects have been the main barrier to the Chinese carmakers’ entrance in mature markets to date, and specific strategies have had to be developed to address this. This is why I am grouping all ‘mature markets’ in one article, independent of their geographic location…
In the first 3 parts of this series we have observed that Chinese carmakers have managed their expansion into Africa, Latin America and Eastern Europe by securing less developed markets and using them as anchor points for a more widespread presence in these regions. In this context it’s interesting to note that in their own ‘backyard’, Asia, the same strategy has not been met with the same success, with only a handful of small markets in the region ‘cracked’ so far..
As illustrated in Africa and Latin America, Chinese manufacturers have been working extra-hard below the radar to secure less developed markets that will form the bulk of global car sales growth over the next couple of decades. Their approach to Eastern Europe is very similar. There are currently three Chinese assembling hubs in the region – in Russia, Ukraine and Bulgaria – acting as a very convenient springboard for further expansion throughout the continent, including all the ex-USSR nations and potentially Western Europe…
If Chinese carmakers have started exporting to Africa in the early 00′s, they set foot in Latin America even earlier, with JAC starting to export trucks to Bolivia back in 1990. Similarly to the strategy they adopted in Africa, the Chinese have initially focused on the less developed car markets in the region. They are now in the process of stepping up their involvement by launching in the bigger, more mature markets like Argentina and Brazil.
In fact, the foundations the Chinese have built in secondary Latin American car markets are potentially their strongest in the world so far…
Today we inaugurate a 5 Part series about how Chinese carmakers are setting themselves up for success abroad. Each day of this week I will publish a new Part for the series. I hope you enjoy it!
For the first time in the history of car manufacturing, Chinese carmakers have sold 1 million cars outside of China in 2012. They are now relying more and more on export markets to boost their bottom-line, especially as conditions have worsened for local passenger cars at home over the last couple of years. However, as I described in my article “China: How local brands may finally find their mojo at home“, the Chinese are learning how to sell low-cost overseas and apply these strategies at home, making themselves more competitive in the process.
In fact, while the long-dreaded Chinese ‘invasion’ of the West European and American car markets is still a long way off, Chinese manufacturers have been working extra-hard under the radar to secure less developed markets that will form the bulk of the global car sales growth over the next couple of decades.
After California, let’s go all the way to the East Coast and the Big Apple because I have some exclusive, rare and detailed car sales data for New York!
One thing is certain, New York loves Japan and Honda… and not so much cowboys pick-up trucks…
Last time I opened my mouth we went on an exhausting worldwide roundup that crowned the new generation Toyota RAV4 as the most impressive performer. So this time I thought we should just relax and enjoy the sights of California.
Sales by state is a rare luxury so please indulge…
…but don’t expect too many pick-up trucks or Fords or Chevrolets though…
Surprise surprise number 1: Sales are up for the first time in 19 months…
Surprise surprise number 2: For the first time since the launch of the nameplate in 1996, the Audi A3 is among the 10 most popular models on the continent.
After studying how Chinese brands may finally find their mojo at home and before I hit you with a few impressive sales figures for April let’s take a bit of time for our much anticipated World Roundup for March.
This month the worldwide star is the Nissan Qashqai…
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