Japan automakers lag in brand war in China ANN — Volkswagen Santana sedan I

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Japan lag in brand war in China

Chinese car see Volkswagen AG’s cars a pre-opening event of the Beijing Automotive Exhibition, held 19 in Beijing National Indoor

Business Desk

The Yomiuri

Publication Date. 08-05-2014

companies are hurriedly seeking to other Asian countries’ to take advantage of the countries’ growth, as domestic markets due to the low birthrate and graying of the population.

competition with US and European is fierce, it is necessary for companies to their appeal by developing brand recognition and improving perceptions of both the companies and products, if they wish to dominance in overseas markets.

On 19, German maker Volkswagen AG held a preopening event to the Beijing International Automotive which is one of world’s largest shows.

VW Chairman Martin Winterkorn at the event, “We, Volkswagen, also play a pioneering in the field of environmentally friendly in China.”

Winterkorn showed latest models of electric plug-in hybrid vehicles and eco-friendly cars to about invited guests, most of were owners of car dealerships in

In 1985, VW became the first automaker to begin production of vehicles in the country.

According to Inc. a private market company, VW’s shipments in numbered 3.03 million which was equivalent to about 60 per of Japan’s annual new car sales.

VW top for market share in China at per cent, which was much than the maker in second own Shanghai Automotive Industry


A large number of VW’s sedans are used as taxis, and made by fellow group Audi AG are used for government cars in China.

VW’s are overwhelmingly popular as “affordable cars”.

In addition to the high of German makers’ cars, reason German brands are is that many design favored by Chinese are included. For at the front of car bodies, flashy parts are installed.

At the motor venue, Ren Jie, a 30-year-old employee, said, “The of the front part is attractive and a sense of luxury.”

VW showcased eco-friendly car models in the motor aiming to capture future

Among foreign-capital automakers in South Korea’s Hyundai Co. holds the second-largest market Hyundai’s products are priced 10 per to 20 per cent lower than of Japanese makers.

Hyundai has itself from rivals a brand identity associated reasonable pricing, and has attracted consumers buying family for the first time.

General Co. of the United States, ranked in China, lags Hyundai by a slight margin. GM’s bands, such as Chevrolet and are known for large vehicles.

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Li a 24-year-old public servant, they “have presence and are GM has gained presence and competitive in China by emphasizing their as “powerful American cars”.

automakers have a handicap in where public opinion to be unfavorable towards Japan. But considering that factor, it be said that Japanese have succeeded in effectively their brand images.

Mariko Yasue, a research at Dentsu Innovation Institute who is an on consumer trends in China, that Japanese makers’ “have high performance, and know they are good if try driving them. But the designs interesting features”.

In addition, ideas about eco-friendly where Japanese makers an advantage, have spread in For example, some in China that hybrid vehicles to be recharged with electricity, and believe the batteries are at risk of fire.

Dong Changzheng, an vice president at a Chinese of Toyota Motor Corp. “Until consumers have product features, we need to twice as hard in China.”

Seiji Kuraishi, chief of the business operations department of Motor Co. said: “We had thought if we produce good products, we be praised. But, in China, we send out information about our aggressively it is no different from silent.”

A company established by Motor Co. with a local in China signed a sponsorship in February with Guangzhou Football Club, a popular team in China.

Ma Guixian, 39, who is a of the soccer team, said, “My and I have decided to buy Nissan

This year, Toyota’s unit features Beyonce, a famous US singer, in its advertising to reinforce its brand strategy.

has grown to be the world’s largest car in which shipments of passenger number 17.92 million and new car sales, including those of vehicles, number 21.98

But the penetration rate against the population is still about 10 per and thus growth potential is

The superiority of brand images decide who wins or loses in the market.

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