How to win a war without firing a single shot
Motoring journalists have the enviable task of evaluating cars to see who they are for and if they’re worth your money. We get access to vehicles we usually won’t be able to afford with our basic salaries.
As storytellers, we must share with you, our dear readers, what we honestly think about a car, a brand, or even its services. We keep an open mind and evaluate cars based on their design, build quality and performance.
We always attempt to keep our evaluations around the car and how it will affect you, the buyer. Because of globalization, where these cars are made, whether in Japan, the US, Europe, Asia, or even China, has now become irrelevant. We must provide insight based on our interaction with the vehicle and our experiences with other cars in its class.
But sometimes, we do notice trends that make us raise an eyebrow. These trends can disrupt the status quo and affect the market we’ve grown comfortably accustomed to.
Let’s take the influx, nay, onslaught of Chinese car brands.
In the last five years, a new wave of brands from China has set up shop in the country, from MG, Geely, Chery, and GAC to Jetour, BYD, Maxus, Haima, Great Wall Motors, Changan, Weltmeister, Hongqi, Wuling, and soon Omoda and Jaecoo. Of course, Foton, JAC, BAIC, Kaicene, and other Chinese commercial vehicle brands have been around for a while.
They have upped the ante in marketing and are slowly but surely ingraining themselves as viable alternatives to the established Japanese brands.
As a result, they are making headway in sales as they bite away bits and pieces of market share that otherwise would have landed with the Japanese marques. They are also making waves in marketing exposure and brand-building activities.
Just recently, a media trip to China with Omoda and Jaecoo was concluded with test drives of its three upcoming models and a whole day for R&R exploring the mountains of Huangshan, a UNESCO heritage site.
Foton, GAC, Chery, and BYD have also invited motoring scribes and influencers to their immersion junkets and business conferences on the Mainland.
Astara-managed GAC just finished an off-road media drive with its GS8 SUV and will conduct a track day at the Batangas Racing Circuit at the end of the month to spotlight its Empow sedan.
And last Friday, Hongqi, a well-respected luxury Chinese car brand in its home market, opened its first showroom in swanky BGC.
With a mixed EV and ICE lineup, Hongqi aims for the higher tier market with its premium and luxury offerings.
Who would have thought that a China-branded luxury car was even possible? Remember, only a decade ago, these Chinese brands were merely copying Japanese designs and calling them their own?
And as if events, trips, and drives weren’t enough, most Chinese brands have also aggressively spent on advertising. Just count the number of ads from Chinese car brands in the last few weeks here in this paper.
Shock and awe
But you can find one telling sign that this Chinese car brand expansion is making a significant impact around the world in the recent 2023 Munich Motor Show. A Filipino car executive who attended the prestigious event noticed that most of the cars and brands displayed were of Chinese origin. And how these cars were almost all electric vehicles.
A predominance of Chinese brands. At the Munich Motor Show. Europe’s biggest motor show. Let that sink in for a moment.
According to Moody’s credit rating reports, China’s vehicle exports surpassed South Korea in 2021 and Germany in 2022. If it hasn’t already, China is poised to overtake Japan this year and become the world’s largest car exporter.
It’s not that Japanese, Korean, American, and European brands are doing nothing. They are. There’s the Tokyo Mobility Show in October. There have been events and launches in recent weeks, mainly from Toyota, Mitsubishi, and Honda. Hyundai sent a media delegation to Indonesia and will launch two new models next month. They’re also doing their fair share of roadshows and mall displays.
However, the sheer volume of marketing activities by an increasing number of Chinese brands is overwhelming the established players. And believe me, there will be more Chinese brands landing on our shores soon.
It’s real, and it’s happening now
So, don’t be surprised if one day you wake up and see mostly Chinese car brands on our roads. The signs are there. We are undoubtedly heading that way with the Chinese value-for-money offerings.
Just a few more tweaks to their aftersales businesses, and they’ll soon be at par with the more established brands banking on their heritage alone to retain market share.
Even local car company executives and veterans of the decades-long Japanese dominance of our car market are convinced that a Chinese car brand invasion is well on its way. And it won’t be like the ones we have seen and experienced in the past—improved quality at lower FOB prices per unit. Any person in business can see the potential for bigger margins in this kind of game.
At this point, it’s just a matter of time.
