Despite their impressive growth, China's home-market manufacturers need time to establish themselves on the global stage

China’s domestic brands are not yet ready to play on the international stage, according to a senior automotive analyst.

Speaking to Autocar ahead of the Global Automotive Forum in China this week, JFP Holdings managing partner and analyst Jack Perkowski said: “It takes a while. There are some big constraints internationally, first of all the safety standards. The stricter emission requirements are also a problem. Once you get all that qualified it’s then about establishing a dealer network. That doesn’t get handled overnight."

JFP Holdings, a merchant bank based in China, is an organising partner of the GAF. The annual conference, which this year is taking place in Chongqing, sees both domestic and international manufacturers and suppliers meet to debate the future of the automotive industry.

Naturally, the expansion of China’s domestic brands is a big talking point, but Perkowski believes the country’s home manufacturers need time to develop: “About ten years ago some big players all made big runs at trying to expand, and they found it was harder than they thought, so they decided to focus on China and improve their game.”

Not helping matters is the fact that Chinese buyers have yet to be fully persuaded to buy from a domestic brand. “It’s a problem,” said Perkowski “I had one senior executive tell me that no matter what features they put onto a car, it’s still hard for them to sell a Chinese brand for more than 100,000 Yuan (about £10,500).

“The Chinese consumers are discerning and they know there are companies which have been doing this for a long time.”

While some Chinese models have historically not fared well when faced with Euro-NCAP's crash test procedures, Chinese start-up brand Qoros made history in 2013 when its 3 Saloon was named the safest car of 2013.

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Comments
9

8 June 2015
I don't think Chinese manufacturers will be taken seriously internationally until they stop stealing other people's designs, either.

8 June 2015
Didn't do the Japanese to badly in the 70's.

8 June 2015
Nobby Hightinkle wrote:

Didn't do the Japanese too badly in the 70's.

8 June 2015
Wrote it twice.

8 June 2015
Because when they are ready they are going to spread like virus or Volkswagen which is behind some major Chinese car makers any way.

8 June 2015
Volkswagen is NOT behind any manufacturers, some of the Chinese brands are in a partnership, producing old VW designs, they are not owned by VW, or run by them, there are joint ventures.

MG is not doing too badly, they are exporting to a number of countries, there are also a number of other brands that are exporting to other countries quite successfully, the piece, is very biased - as usual.

8 June 2015
No one inside China wants a Chinese car either. People only buy them if they can't afford a western car. They want the same aspirational brands as everyone else the world over. Japanese cars are unpopular for political reasons however.

9 June 2015
That's why many MANY millions of home grown products are sold every single year is it - You will find that nearly all these "aspirational brands" have dipped this year due to the brands ripping off the consumer, and in China, that goes down as well as a Strike at the local paddy fields....

9 June 2015
If they're brass necked enough to copy the cars, they'll copy the buildings and everything else.

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