Chinese Automobiles

The world has already sounded a scare over the possible hegemony of cheaper Chinese goods on the world market, now it is witnessing its fears take shape slowly. Chinese cars are the newest vehicles of China's imperialistic designs over the world market.

Riding on its WTO entry in 2001, Chinese automobile companies have worked hard on upgrading their products to meet the world standards and also increasing the production.

In less than two years after its WTO debut, China ranked fourth in the world in terms of automobile production. This sharp rise was especially helped by the active participation of Japanese automobile companies like Honda, Suzuki.

Chinese automobiles cannot be fully discussed with a mention of Shanghai Automotive Industry Corporation. The corporation is a conglomeration of numerous local companies and it holds 45% share in the Chinese market.

Chinese automobiles' debut in US in 2005 has been seen as a threat to the more expensive Western cars; though many are quick to point out that the price gap that exists, is certainly exceeded by the yawning gap in quality.

It would be improper to present only the sunny side of the Chinese automobiles, whereas there looms fair bit of dark clouds that could cast gloom over the euphoria of their initial successes. In the domestic market, the import duties on foreign cars, as per the dictates of the WTO rules, will have to be brought down to 25% by 2006, which translates into a tough competition on the home turf. Besides, the Chinese automobile industry is largely dependent on the many foreign partners who have huge stakes in the market; so much so that most of the latest technologies and funds come from Japan.

In 2002 Chinese automobile made a foray into the Indian market with two-wheelers. Chongqing Lifan and Hongda Industry(Group) Co. Ltd. launched Cosmo Blaster, a 100 cc bike. The bike, as expected, is much cheaper than the Indian bikes and is replete with many more features otherwise absent in the Indian bikes. The market response, so far, has been little better than lukewarm, with many expressing doubts over the durability of the bikes. It is now left for the unyielding judge, time to decide how whether these bikes have enough in them to outclass their Indian cousins.

automobileIndia.com provides information on Chinese automobiles and other aspects of automobiles in India.