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China Overtakes Japan, South Korea in Selling More Cars to Pragmatic Chileans

Discussion in 'World Affairs' started by haidian, Aug 10, 2018.

  1. haidian

    haidian SENIOR MEMBER

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    China Overtakes Japan, South Korea in Selling More Cars to Pragmatic Chileans
    YU LIYAN

    DATE: MON, 08/06/2018 - 17:27
    Aug. 6 -- China has shown its competitive edge in the auto manufacturing sector by selling more cars than Japan and South Korea in the South American country of Chile for the first time, just less than a decade since Chinese automakers' entry to the market.

    Chinese carmakers, such as Chery Automobile, JAC Motors, and Changan Automobile, sold more than 31,000 vehicles in Chile in the first six months of this year, which makes up 16 percent of the market cap, local newspaper El Mercurio reported on Aug. 3, citing data from the National Automotive Association of Chile.

    The main reason for the booming sales is the improvement in Chinese auto brands' quality, said Caddo Raisman, chief executive of two dealers of Brilliance Auto and BAIC Motor. Another is the recent changes in the rate of the Chinese yuan versus the US dollar, which pushes the prices of Chinese exports low, a managing car dealer said. Chileans are pragmatic in their consumption habits and that is why it is rare to see European or US luxury vehicles on the streets, local residents of Chinese origins added.

    China's domestic market is becoming saturated so carmakers need to explore new regions to stimulate growth, Shu Chang, partner at Ernst & Young told Yicai Global. This is why vehicle brands are exploring emerging markets mainly in Asia, Africa, and Russia, and some are making better results than back home.

    Lifan Industry Group gains three times the amount of domestic profits from its exports, Zhou Zhenjiang, assistant general manager of the Chinese carmaker's sales unit, said at the end of last year. Chongqing-based Lifan exports to 117 countries and regions around the world.

    https://www.yicaiglobal.com/news/ch...th-korea-selling-more-cars-pragmatic-chileans
     
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  2. haidian

    haidian SENIOR MEMBER

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