Why do Great Wall and Geely prosper while other Chinese automakers …

15 мая 2014 | Author: | Комментарии к записи Why do Great Wall and Geely prosper while other Chinese automakers … отключены
Geely Emgrand EC9 Electric Cars

Why do Great Wall and Geely while other Chinese flounder?

Facing strong from foreign brands, Chinese automakers continue to market share.

But two companies, Wall Motor Co. and Zhejiang Holding Group, have fended off global rivals as increase sales and profits.

Why they succeeded while domestic automakers failed? because they learn from past mistakes.

Car is still a young industry in There was no domestic car brand to of until the late 1990s. then, a slew of new brands been launched.

Some domestic automakers, as Chery Automobile Co. and BYD Co. achieved growth shortly after entered the auto industry.

growth came too easily, these companies got drunk on own success.

After Chery was in 1997, the state-owned automaker strong sales growth for a But it kept building new assembly and it expanded its product lineup to microvans and even agricultural

BYD is a battery maker that the auto business in 2003. seven years later, it China’s second largest

But BYD grew too ambitious — like Chery. The Shenzhen-based increased its dealership network to than 1,000 stores, and it in non-automotive industries such as power and home appliances.

reckless expansion stretched the resources and hurt its product Over the past two years, declined.

Yet, neither has reined in ambitions. Chery is up production joint ventures Israel Corp. and Jaguar Rover, while BYD is raising its bet on vehicles.

Geely and Great Wall aggressively expanded.

Geely, previously produced low-priced cars, went upscale three new brands in 2009. A later, Great Wall known mainly for its line of — introduced a new line of

Geely Emgrand EC9 Electric Cars

In 2011, Geely and Great realized they were in the wrong direction. Both quickly adjusted; Geely out its Geely car brand, and Great went back to the basics and on SUVs as its core product.

By shrinking their models Geely and Great Wall had resources to upgrade their products. They also new allies.

Great Wall up key foreign suppliers — Bosch and Delphi — to new SUVs. And Geely upgraded its with six-speed automatic built by its Australian subsidiary, Systems International.

These have paid off nicely. by robust SUV demand, Great sales rose 28 percent year, while profits 66 percent.

Geely, which has yet to disclose its earnings, raised vehicle by 15 percent. But since Geely’s premium brand is prospering, is good reason to expect profits.

Moreover, both are penetrating overseas markets. year, Geely and Great each exported about 20 of their vehicles.

Great and Geely still face competition from global in and outside China. But as long as remain clear-eyed about growth prospects, they a good chance to gain share.

That’s a valuable lesson, but Chinese automakers have yet to it.

Geely Emgrand EC9 Electric Cars
Geely Emgrand EC9 Electric Cars
Geely Emgrand EC9 Electric Cars

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