Carmakers Struggle to Gain Traction in Market

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Carmakers Struggle to Gain Traction in Market CHINA DAILY | HONG KONG EDITION Monday, November 4, 2019 MOTORING | 19 Renault seeks out Short Torque Great Wall, Ergo join hands in insurance JV its niche in China to Chinese carmaker Great Wall Motors has struck a deal with Ergo, the retail insurance arm of Munich Re, to create a joint lure more customers venture providing insurance to car owners in China, the compa­ By LI FUSHENG nies announced. The joint ven­ [email protected] ture will be put into operation A major challenge early next year, the companies Chinese people love French said, adding that Ergo would goods: wine, perfume, handbags. for us is low brand own 49 percent and Great Wall But French cars have proved an awareness, so we Motors 51 percent. The German exception so far. insurer intends to carve out a France’s second­largest car­ don’t have enough stake in the highly­regulated maker Renault sold 132,138 vehi­ inflow of customers market largely controlled by cles in China from January to Chinese vendors, said Ergo’s September, a drop in the ocean of to our showrooms.” head of mobility solutions Kar­ sten Crede. Great Wall Motors is the country’s 18.37 million deliv­ Francois Provost, senior vice­ eries. president of Renault and one of the best­selling Chinese Peugeot owner PSA Group was chairman of its China carmakers, with sales in 2018 worse, with 91,000 sold in the operations exceeding 1 million vehicles. same period in the world’s largest car market. GAC Honda forms In contrast, Germany’s Volks­ 11 Visitors try out a Hyundai model at the Guangzhou auto show. CAO YINGYING / CHINA DAILY road safety alliance wagen delivered 2.96 million, models roughly 16 percent of total car GAC Honda initiated a road safe­ are expected to be offered by ty alliance for students on Tues­ sales in the country. Dongfeng Renault by 2022 Renault’s lackluster perform­ day with the China Automotive ance has a lot to do with its short Technology & Research Center history in China. design. In terms of customers, we Carmakers struggle to as well as institutes of higher Thus it has low brand aware­ want to attract those who enjoy education including Tianjin Uni­ ness among Chinese customers, life in the car,” he said. versity, Tongji University and Jil­ said Francois Provost, the car­ The carmaker’s findings show in University. Through the maker’s senior vice­president and that 39.2 percent of Chinese cus­ alliance they will hold regular chairman of its China operations, tomers choose a car because of its gain traction in market events including lectures and in an interview in late October. exterior design, which matters driving skills training to improve As a latecomer to the Chinese more than price, image and spa­ the students’ awareness of road market, its joint venture, Dong­ ciousness. Complex outlook has some manufacturers Insiders hold that Great Wall safety. GAC Honda will finance feng Renault, started production Having repositioned itself, Ren­ Motors’ favorable profit performance the alliance members’ efforts in in early 2016. ault is planning to introduce more making financial strides and others falling is the result of its market restructur­ promoting road safety. The It offers only four models, all of products to the Chinese market. ing, tactical discounting and its mod­ joint venture first held road them SUVs and one of them an The brand will launch sedans, els conforming to National VI safety­related events from 2007 electric vehicle. MPVs and crossovers in coming By ZHANG DANDAN emissions standards. and has been working to “The size of our share is low years, said Ge Shuwen, president [email protected] 10.3 Jiangling Motors generated oper­ improve safety systems for because we are a new brand in Chi­ of Dongfeng Renault. percent ating revenue of 20.41 billion yuan in vehicles. Statistics from the na. A major challenge for us is low “In three years we will launch Automakers’ financial reports the first three months this year, a World Health Organization year­on­year drop of China’s brand awareness, so we don’t have one localized model and intro­ for the first three quarters of 2019 slight increase of 1.08 percent on the show that road accidents kill vehicle sales in the first three around 1.3 million people a year enough inflow of customers to our duce an imported model every show quite a few made losses, quarters of this year same period year­on­year. showrooms,” said Provost when year from now to ensure we have while only a few were profit­mak­ Its operating revenue in the third globally, with the young especially Dongfeng Renault launched the at least one model in every seg­ ing against the downward growth quarter of 2019 was 6.69 billion yuan, vulnerable victims. Captur SUV in Beijing. ment,” said Ge, a former senior trend in Chinese automobile mar­ up 13.28 percent from the same peri­ “But our products are well­re­ executive at FAW­Volkswagen’s ket. 2.4 to 2.8 od last year. Audi, Salzburg Festival ceived: design, features, reliability, Audi division. Public data revealed in the first billion yuan JAC Motors said it expects a profit launch 2020 program quality and safety,” he said. By 2022 Renault will have 11 three quarters of this year, China of 124 million yuan would be made in estimated net losses of So, the French carmaker has models in the market, he said, and produced 18.15 million vehicles the first nine months, a year­on­year Audi China and the Salzburg Fes­ Changan Automobile in the tival introduced its 2020 pro­ decided to try a different tactic in by 2025 the whole portfolio will and sold 18.37 million, a year­on­ first nine months of this year increase of 159 percent. China. It will avoid direct confron­ be electrified. year drop of 11.4 percent and 10.3 Government subsidies have great­ gram to Chinese audiences on tation with volume brands ranging Dongfeng Renault is also percent respectively. ly contributed to JAC’s increase in Wednesday. Audi has been pro­ from Volkswagen and GM to Toyo­ updating its after­sales service Changan Automobile has esti­ profits, with data showing that the moting and supporting cultural ta and Nissan. and extended warranty for its mated net losses for the first nine 724,000 automaker received some 463 mil­ activities around the world for “Instead of just competing with models. It said these are intended months this year of 2.4 billion yuan vehicles lion yuan in government subsidies in more than 55 years, and it has them, we at Renault have our own to offer customers an “easy life” in ($341.01 million), to 2.8 billion the first three quarters. been a main sponsor of the Salz­ sold by Great Wall Motors in the burg Festival since 1995. Audi personality and will differentiate more than 330 cities across the yuan, a fall of 306.35 percent to first nine months of this year Despite this, JAC’s actual sales vol­ ourselves from those mainstream country. “We are not seeking sur­ 340.74 percent year­on­year. ume dropped 11.3 percent to 321,000 China President Gaby­Luise brands. We are a niche brand,” ging sales but we care about fans In the first nine months, Chan­ vehicles in the first nine months this Wuest said cultivating and pro­ said Provost. that identify with our brand. Here gan sold 1.23 million vehicles, down dards switch from National V to year. moting arts has long been a key He said the biggest difference in China we have the patience and, by 23.6 percent from the same peri­ National VI. Foreign automakers are also facing pillar of Audi’s corporate social between Renault and other of course, the confidence to od of last year. Zotye Auto and Haima Automo­ a complicated market performance. responsibility strategy because it brands comes in two aspects. become an influential brand,” Ge The two profitable joint ventures bile also reported losses. Hyundai Motor generated net underscores the brand’s dedica­ “In terms of products, it is said. of the carmaker — Changan Ford Statistics show that Zotye had a net profit of 2.78 billion yuan in the third tion to creating a better life for and Changan Mazda — both saw loss of 760 million yuan in the first quarter this year, a growth of 50.5 people. As part of the coopera­ sales fall in the first three quarters three quarters this year, and Haima percent year­on­year. tion, Audi provides shuttle servi­ of this year. Sales at Changan Ford estimated its net loss would be However, the automaker has strug­ ces for the festival’s guests, who and Changan Mazda dropped 58.2 between 164 million yuan to 244 mil­ gled in the Chinese market, selling during their trip can experience percent and 25.4 percent year­on­ lion yuan in the first nine months of 171,000 vehicles in the third quarter, a the history of the famed festival year respectively. 2019. drop of 5.4 percent from a year earli­ via virtual reality technology. FAW Car, a subsidiary of FAW Great Wall Motors, Jiangling er. Group, released a report showing Motors and JAC Motors on the other French carmaker PSA had operat­ GM reports better­than­ its net losses for the first three quar­ hand, all saw profits increase in the ing revenue of 122.15 billion yuan in expected Q3 sales ters this year are estimated to be first nine months this year.
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