For vehicle companies, China sets the agenda
By Joe McDonald |
April 26, 2010, Monday
|
Print Edition
Print Edition
THE Nissan Teana sedan has a full-sized back seat, conservative looks and a reasonable price - perfect for a Chinese entrepreneur with a family.
That Chinese buyer is why the car exists.
Nissan said the Teana, though sold in Japan and other countries, was created with China in mind - one of a growing number of models designed by global vehicle makers for the world's biggest car market.
"The Teana is a Chinese product," Nissan CEO Carlos Ghosn said at the ongoing Beijing Auto Show. "Without any doubt, the Chinese consumer is now becoming a big target for a lot of products that we are developing."
China's vehicle buyers have become a force in the design decisions of companies from Nissan to General Motors to Volkswagen. Their influence is starting to be seen in models sold worldwide.
The reason is obvious: China's auto market surged past the United States last year to become No. 1 when sales elsewhere are so weak that major brands make most of their global profits in China.
"From volume cars to luxury cars, we can see that all car makers are trying to design cars to fit Chinese tastes," John Zeng, an analyst for IHS Global Insight, said.
Companies are modifying luxury cars to suit China's new rich and creating scaled-down sedans and minivans for the populous but lower-income family market.
GM was a pioneer in the Chinese market. Its Cadillac unit created the 2008 CTS for the nation, giving it a bigger back seat for Chinese buyers who sit in back and have drivers. That model was sold worldwide, so Cadillac customers everywhere got the added legroom.
Daimler's Mercedes-Benz debuted an extended E-class sedan for China at the Beijing Auto Show. Ford's Volvo Cars and Volkswagen's Audi have created Chinese models with bigger back seats.
Luxury makers are giving cars a longer wheel base and stronger suspension for a smooth ride on China's rougher city streets.
China had relatively few private cars 15 years ago.
Vehicle companies and industry analysts believe Chinese car ownership levels are still so low that sales, from luxury to economy brands, should grow strongly in coming years as millions of families buy their first car.
In the mass market, China-inspired cars mix smaller size and lower price with bigger vehicles' more sober styling and focus on interior room.
That is aimed at first-time buyers who might be middle-aged with children or a business and care about practicality, not sporty looks.
At the Beijing Auto Show, Ford is displaying a micro-compact concept car, the Start, with a three-cylinder engine, designed with crowded Chinese cities in mind.
That Chinese buyer is why the car exists.
Nissan said the Teana, though sold in Japan and other countries, was created with China in mind - one of a growing number of models designed by global vehicle makers for the world's biggest car market.
"The Teana is a Chinese product," Nissan CEO Carlos Ghosn said at the ongoing Beijing Auto Show. "Without any doubt, the Chinese consumer is now becoming a big target for a lot of products that we are developing."
China's vehicle buyers have become a force in the design decisions of companies from Nissan to General Motors to Volkswagen. Their influence is starting to be seen in models sold worldwide.
The reason is obvious: China's auto market surged past the United States last year to become No. 1 when sales elsewhere are so weak that major brands make most of their global profits in China.
"From volume cars to luxury cars, we can see that all car makers are trying to design cars to fit Chinese tastes," John Zeng, an analyst for IHS Global Insight, said.
Companies are modifying luxury cars to suit China's new rich and creating scaled-down sedans and minivans for the populous but lower-income family market.
GM was a pioneer in the Chinese market. Its Cadillac unit created the 2008 CTS for the nation, giving it a bigger back seat for Chinese buyers who sit in back and have drivers. That model was sold worldwide, so Cadillac customers everywhere got the added legroom.
Daimler's Mercedes-Benz debuted an extended E-class sedan for China at the Beijing Auto Show. Ford's Volvo Cars and Volkswagen's Audi have created Chinese models with bigger back seats.
Luxury makers are giving cars a longer wheel base and stronger suspension for a smooth ride on China's rougher city streets.
China had relatively few private cars 15 years ago.
Vehicle companies and industry analysts believe Chinese car ownership levels are still so low that sales, from luxury to economy brands, should grow strongly in coming years as millions of families buy their first car.
In the mass market, China-inspired cars mix smaller size and lower price with bigger vehicles' more sober styling and focus on interior room.
That is aimed at first-time buyers who might be middle-aged with children or a business and care about practicality, not sporty looks.
At the Beijing Auto Show, Ford is displaying a micro-compact concept car, the Start, with a three-cylinder engine, designed with crowded Chinese cities in mind.
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