Wednesday, December 26, 2007

Learn Chinese online - Carmakers join race to get into Europe, US

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BIZCHINA / Center

Carmakers join race to get into Europe, US

By Gong Zhengzheng (China Daily)
Updated: 2007-08-10 11:18

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Visitors inspect a BYD car at an exhibition in Beijing. BYD Auto will
join the legion of local carmakers racing to get into Western Europe and
the US. [newsphoto]

BYD Auto, the car unit of Hong Kong-listed battery producer BYD Co Ltd,
will join the legion of local carmakers racing to get into Western Europe
and the United States - the two most competitive car markets.

Xia Zhibing, general manager of BYD Auto, told China Daily that it plans
to sell its 1.6 and 1.8-liter F3 compact sedans in Western Europe as
early as next year, with the Netherlands and Portugal its first
destinations.

The emerging low-cost car manufacturer also plans to ship its 2 and
2.4-liter F6 mid-range sedans to the US in 2009 or 2010, Xia said.

"We are in discussions with European and US dealerships to build networks
there," he said.

But he didn't reveal the price tags of the two models for the two regions.

In China, the F3 retails between 71,500 and 105,800 yuan. The F6, to go
on sale in October, will sell for around 150,000 yuan.

BYD follows local carmakers like Brilliance, Chery and Geely, looking to
Western Europe and the US.

But May Arthapan, an analyst with industry consultancy Automotive
Resources Asia Ltd, said local carmakers won't be able to sell cars based
only on low prices in the two regions. Arthapan said the automakers will
need brand reputation, quality products with good designs and after-sales
service.

"Chinese brands still have work to do to improve their vehicles to meet
the US and Europe's safety and quality standards. That's the first
barrier," Arthapan said.

It will take "a lot of time and investment" to sell large volumes there,
she said.

Cars from China, the world's No 3 vehicle producer, have already faced
safety problems in the West.

The BS6 mid-sized sedan from Brilliance, which started shipping to Europe
in November, only scored one star out of five in a crash test by
Germany's ADAC auto club in June.

BYD's Xia said: "It's an arduous task to build our brand there."

(For more biz stories, please visit Industry Updates)

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