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Car giants court Chinese drivers
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CNTV, November 24, 2011
The ninth Guangzhou Auto Show opened on Tuesday. In recent years, China's auto market has grown in leaps and bounds. The country is now one of the most important for international carmakers. Auto giants over the world are raising their stakes in joint ventures, and beefing up investment - all in the hope of securing a piece of China's booming population of would-be carbuyers.
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The ninth Guangzhou Auto Show opened on Tuesday. |
It's every car aficionado's delight.
In the spotlight, the latest models from international auto giants. With demand declining in developed markets like the U.S. and Europe, the likes of Volkswagen, Mercedes-Benz and BMW are all jostling for a piece of China's lucrative car market.
There are reports Volkswagen will raise its stake in its joint venture with FAW Corporation, from 40 percent to 49 percent.
An Tiecheng, general manger of FAW-VW Automobile Company, said: "We haven't yet been informed of the stake adjustment plan. The Chinese market is growing rapidly. We have new production bases in Chengdu and Foshan, and I think the stakeholders are quite content with the development of the joint ventures. "
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The ninth Guangzhou Auto Show opened on Tuesday. |
Though negotiations are not yet underway, reports suggest Volkswagen is seeking more of a say in the Chinese market. It's no coincidence General Motors is also mulling a similar action. It hopes to regain a one percent share in Shanghai General Motors.
Apart from increasing their joint venture presence, international auto companies have laid out new strategies for distribution channels.
Beijing Benz and Mercedes Benz China - joint venture operations between Germany's Daimler and China's BAIC - are integrating their distribution systems. Analysts say, Daimler is playing a key role in the overhaul process.
Meanwhile, the Volkswagen-FAW tie-up is beginning to upgrade its sales network in China. The move will affect 30 cities including Beijing, Shanghai and Guangzhou.
And foreign automakers are pouring investment on the research and development front in China. Japan's largest automaker, Toyota, has set up an R&D centre in eastern China's Jiangsu Province.
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