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Strategy: How the Chinese are setting themselves up for success (Part 3: Eastern Europe)

June 6, 2014 by Matt Gasnier

Strategy: How the Chinese are setting themselves up for success (Part 3: Eastern Europe)

TagAz has been manufacturing the Chery Tiggo in Russia – rebranded Vortex Tingo.

As illustrated in Africa and Latin America, Chinese manufacturers have been working extra-hard under the radar to secure less developed markets that will form the bulk of global car sales growth over the next couple of decades. Their approach to Eastern Europe is very similar. There are currently three Chinese assembling hubs in the region – in Russia, Ukraine and Bulgaria – acting as a very convenient springboard for further expansion throughout the continent, including all the ex-USSR nations and potentially Western Europe in the longer-term.

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Strategy: How the Chinese are setting themselves up for success (Part 2: Latin America)

May 7, 2014 by Matt Gasnier

Strategy: How the Chinese are setting themselves up for success (Part 2: Latin America)

If Chinese carmakers have started exporting to Africa in the early 00′s, they set foot in Latin America even earlier, with JAC starting to export trucks to Bolivia back in 1990. Similarly to the strategy they adopted in Africa, Chinese manufacturers have initially focused on the less developed car markets in the region. They are now in the process of stepping up their involvement by launching in the bigger, more mature markets like Argentina and Brazil.

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Strategy: How the Chinese are setting themselves up for success

March 31, 2014 by Matt Gasnier

fox-africa-2

Like this fennec fox, Chinese carmakers have been walking against the wind in Africa. And it’s worked.

For the first time in the history of car manufacturing, Chinese carmakers sold 1 million cars outside of China in 2012, and estimates show chances are they have repeated that feat in 2013. Chinese manufacturers are now relying more and more on export markets to boost their bottom-line, especially as conditions have worsened for local passenger cars at home over the last couple of years. However as I described in my article “China: How local brands may finally find their mojo at home“, the Chinese are learning how to sell low-cost overseas and applying these strategies at home, making themselves more competitive in the process.

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