By Li Tiezheng
Fierce competition in semi-luxury and luxury car market
Now the peak time has come for Chinese car owners to change their first vehicle. The semi-luxury and luxury car market is the fastest growing sector of China's stable automobile market. In the Auto China 2012, it's not difficult to see that all major auto companies and their JVs in China are bringing all their skills into play to seize this market.
Mercedes Benz brings 4 brands, i.e. Mercedes Benz, Smart, AMG, and Maybach, and a total of 34 of its global models to the Auto China 2012, and launches the world premiere of its brand-new CLC models in the event. As Dieter Zetsche, Mercedes Benz' global president, puts it, Mercedes Benz must become the number one seller of luxury cars in China. Jaguar launches the world premiere of its most luxury model ever: XJ, whose power and configuration are stunning. The debut of Lexus's new generation ES250 and other models attract the attention of consumers with their petro-gasoline hybrid power train and their innovative designs. The brand-new 300C luxury business car, on which Chrysler has spent US$ 1 billion researching and developing, is brought to China. Chrysler is telling the Chinese consumers that, besides producing JEEP, its R&D and manufacturing capability of luxury car is by no means any weaker.
In the meantime, Citroen's GS series of luxury models makes its Auto China debut, intending to show its design and technology prowess that has been accumulated for 90 years to the audience. Models of this premium brand of Citroen will be produced by Changan PSA Automobiles. Toyota's thoroughly recast seventh generation Camry, whose power and safety have been dramatically changed, is exhibited. Shanghai Volkswagen's new LAVIDA and the new SEAT LEON are effective demonstration of Volkswagen's leading position in China's semi-luxury and luxury car market. Although the Fiat 500 is a small-displacement car, its extraordinary design, configuration and power train bring its price into the range of semi-luxury cars. The new 500c that is exhibited in the event is completely refreshing. In recent years, Korean cars have been growing vehemently, capable of competing with German and Japanese cars on the same stage. SSANG YONG's luxury flagship model Chairman W2.8 standard edition imports Mercedes Benz's technology thoroughly. Beijing Hyundai and Dongfeng Yueda KIA continue to use the new Sonata 8 and K5 respectively as their main products to compete in the market.
Showing no weakness, many Chinese brands also launch attacks in this highly competitive sector. FAW has fully restored production of the legendary luxury car brand Hongqi, and established the L and H series of products based completely on proprietary technologies, achieving breakthroughs in design, configuration, and quality. FAW's another luxury model Besturn B90 also made its Auto China debut, showing people its faith in entering the semi-luxury car market. SAIC's self-owned high-end brand Roewe 950 made its auto exhibition debut. Its elegant and steady lines, mighty power train, and exquisite workmanship impress the audience with SAIC's unique strength in independent innovation and global resources integration. Haima's B-series sedan car is also exhibited for the first time, its advanced design and configuration bringing the product onto a new level. ZOTYE's world premiere of its new model Z300 has also brought the brand onto unprecedented level. Ever since being bought by the Chinese, VOLVO, now well funded, has been reinvigorated. The official launches of sports function models V60 and V40 carry on VOLVO's unique drive and safety technologies.
SUV market is heated
Besides the semi-luxury and luxury passenger car market, another extremely boisterous segmented market in China is the multi-function and crossover market, the best example being SUV. This seemingly niche market sold an aggregate of 2.5 million vehicles in China last year. Many models remain in short supply. For this reason, auto manufacturers are developing their own products.
Ford introduces three new models of SUV in Auto China 2012: the new Explorer, Escape, and Ecosport, tailoring to the demands of different levels of consumers in term of displacement and size of the cars. Land Rover Evoque introduces the Victoria Beckham limited edition, issuing only 100 units globally and launching it initially in China. Dongfeng Luxgen's 7CEO, which is designed for high-level businessperson, is more powerful and has a better configuration than its popular first generation product that went on the market last September. Freemont, the first SUV co-developed by Fiat and Chrysler, was brought into China by GAC Fiat and has been in great demand. Guangzhou Honda's new Crosstour 2.4L, which is a crossover model that combines the functions of sedan car, SUV, and MVP, can meet consumers' demands in every dimension. The C4Air Cross, Citroen's first SUV in China, is a clear demonstration of Citroen's technology innovation and design. GAC's Trumpchi GS5, GAC Changfeng's Liebao series and Pajero, Brilliance Auto's V5, Geely's debut of GX7, Soueast's V5, Dongfeng Fengxing's Jingyi and Lotus SUV are all demonstration of the competitiveness of Chinese brands in the SUV and crossover sector.
A step closer to bulk production of new-energy cars
Recently, China promulgated the Development Plan of Energy-saving and New-energy Car Industry (2012-2020), clearly stating that electric vehicle is the long-term objective and plug-in hybrid car is the short-term target. In this exhibition, we can also see the efforts that manufacturers have made in this regard.
Toyota sticks to the path of hybrid power. Of the models it exhibits in the Auto China 2012, 30 percent are hybrid models. Its representative models, the new generation Prius and Camry's hybrid edition, have entered the market in large quantity. Shanghai GM Cadillac's ELR adopts incremental Li electricity-powered technology, already capable of being used in large scale; the hybrid-electric edition of Buick Regal has also reached a very high standard. Electric car brand DENZA, which is a JV of BYD and Daimler, exhibits its concept model. Its technology is mature and it will enter the market in bulk quantity next year. Roewe 750 and KIA K5 also have their hybrid editions. Almost all domestic and foreign companies, including Volkswagen, BMW, Nissan, Ford, Honda, Hyundai, Peugeot Citroen, SAIC, Dongfeng, ZOTYE, and Haima, exhibit their achievements in the development of new-energy cars.
