Mexican Media Brands
China’s Indigenous-Brand Policy Stumbles
China's demand that foreign carmakers develop and market special "indigenous" brands is hurting more than helping the country's domestic carmakers, the Financial Times reports.
#economics
Share
China's demand that foreign carmakers develop and market special "indigenous" brands is hurting more than helping the country's domestic carmakers, the Financial Times reports.
The idea was to help China's carmakers become more competitive. But local producers say the plan has merely enabled foreign companies to compete directly with domestic manufacturers on price. They also point out that the new indigenous models benefit from global R&D resources that local manufacturers can't match.
The FT notes that demand for General Motors Co.'s local Baojun brand climbed nearly 20% to more than 100,000 units last year. Prices for Baojun cars begin at 50,000 yuan ($8,000).
In the meantime, the market share held by domestic producers currently at a record-low 23% continues to shrink.
Foreign carmakers, which prefer to develop vehicles they can sell in multiple markets, are not enthusiastic about China's local-brand requirement. The FT says the Chinese government doesn't appear to be pressuring foreign carmakers to step up their efforts to introduce more indigenous brands, perhaps because it recognizes the policy is not effective.
RELATED CONTENT
-
On Lincoln-Shinola, Euro EV Sales, Engineered Carbon, and more
On a Lincoln-Shinola concept, Euro EV sales, engineered carbon for fuel cells, a thermal sensor for ADAS, battery analytics, and measuring vehicle performance in use with big data
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.
-
on the Genesis GV60 interior, EV sales in H1, Bentley Bentayga's wood work, Faurecia's advanced manufacturing & more
The strange glowing orb in the Genesis GV60. . .global EV sales in the first half. . .creating wood for the Bentayga interior. . .the importance of material handling at Faurecia. . .lux ATPs. . .fast Porsche. . .fast Lambo. . .the Avalon Hybrid. . .Silverado steel. . .