ADM – EA Consulting

BEIJING: GM, Volkswagen and Renault Nissan, these three big players on automotive field are drinking a toast to China for the incredible result obtained from chinese internal market. 

US carmaker GM regained its crown as the No 1 automaker after selling over 9 million vehicles last year. The secret is obviously the well done JVs that GM has signed with important chinese partners; this allowed to US manifacturer to sell more than  2.55 million vehicles in the country last year, which accounts for more than a fourth of its global tally.

Which kind ov vehicles are preferred by chinese customers?  we’re not of course talking of luxury cars but minivans,  small and cheap vehicle practical for carrying cargo and people and popular in rural regions. The strategy of GM seems to be always more present on suburban areas to be introduced capillary into popular market. The partners of GM in China are now promoting an image of versatility at good price for GM’s minivans.

Volksvagen got more than 2.26 million of vehicles delivered in behalf of chinese market. A great record that consist of more than a quarter of whole production of the german corporate sold among chinese customers. Now Volksvagen needs to improve connections on the market to understand which particular needs their  targets are looking to satisfy. That’s why the automaker announced last year it would invest 1.4 billion euros ($1.86 billion) into joint ventures in China from 2012 to 2016 to lift production capacity and develop new models. 

About Renault – Nissan, the result obtained in China has been so significant that the carmaker is planning to start with chinese partner (Dongfeng Motor Corp) the production of series of Renault cars that recentply has been replaced on worldwide markets with Nissan mondels. The Renault-Nissan alliance reported combined sales of over 8 million last year and about 1.27 million cars were sold to the Chinese.

The nation has become a new center of gravity and annual light vehicle sales could well exceed 30 million by 2018, about twice the market size of the US. That’s why Toyota also is thining about to move its business department for chinese market (now placed in japan) directly in China, to help the marketing and technical communication with partners on internal market and in particular to win competitors (at the moment GM, Nissan and Volksvagen have set up JV and some support-depts but the core-activity has been always managed in homecountries). Doing so all decisions by Toyota could be made by local operations with a quicker response.

The number of registered cars, buses, vans, and trucks on the road in China reached 62 million in 2009, and is expected to exceed 200 million by 2020.