With their little bread van (“mianbao che”) the three way joint venture between General Motors, Shanghai Automotive Industries Corporation and Liuzhou Wuling Motors sold almost 1.5 million vehicles in China last year, making GM the biggest foreign auto player in PRC, slightly ahead of the mighty VW group. In March 2013, domestic auto brands accounted for only 42 percent of sales nationwide; a fact that despite two decades of encouragement, has Beijing frustrated to say the least.
In Japan, the auto market is 95 percent dominated by their home grown brands. The figure is 82 percent in Korea. Yet, auto manufacturing in China is a source of national pride. Aggressive moves into the luxury car market have been all but complete failures, best exemplified by Nanjing Auto’s acquisition of the famed MG sports car brand, and that of its parent Rover by SAIC. The new owners started first by selling previous Rover models under that names of MG3 and MG7, followed by the more recent introduction of the domestically conceived MG6 and new MG3, both of which mark a huge departure from that which the MG brand name represents, although one disguised and commonly employed under the term “badge engineered”.
As with much of China’s development, it is one matter to replicate the infrastructure necessary to create high quality products and services; it is altogether another to instill a sense of character and culture. The auto industry is no exception and it may well be another generation before China produces a vehicle that people place in their perceptions alongside Audi and BMW. While progress has been slow, more forthright steps are now being taken. The cutting-edge MG CS was recently unveiled at the Shanghai Motor Show 2013; oozing British design flair, as MG’s first foray to the lucrative urban SUV market the sci-fi-esque looker represents China’s current best bet for gaining global recognition as a auto producer of repute.
While the bulk of China trys to move up market; too proud to cater for the little man, foreign companies have been quietly sneaking into a prevalent market position while still abiding by local requirements to form partnerships with domestic manufacturers. For the time being therefore, the biggest selling cars in China, simple but well made bread vans driven by the salt of the earth, remain largely controlled by foreign hands. That is, until China makes an MG that not only looks good, but also drives like a MG should.
