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Chinese Brands Becoming Threat To Others? by cashmentor(m): 1:15am On May 15, 2012
By Theodore Opara

THE Chinese auto brands recorded about a 100 per cent growth in 2011 in Nigeria when compared to their performance the previous year. According to import statistic from the nations’ ports, a total of 4,508 Chinese vehicles were sold in Nigeria in 2011 as compared with 2356 units in 2010. This means that the Chinese brands are fast becoming a threat to the Japanese, Europeans and American brands in the country.

It should be recalled that when the first set of Chinese models entered the Nigerian market some years back, not many gave them a chance to survive the highly competitive market where the tastes of average Nigerian were very high. To many, it would only take a matter of time for the Chinese models to fizzle out.

The Chinese models then were poorly finished, lacked latest technology as most of them were fitted with outdated engines from Japanese makers, especially Mitsubishi. But unlike Nigeria, the Chinese knew where they were heading to in the automobile industry.

They knew that there is hardly any nation that has a thriving economy that does not have renowned automobile brands or thriving auto industry. The examples are countries like the United States, Germany, France, Britain, Japan, Korea to mention a few.

It has even been discovered that in most cases, the auto brands are more popular than their countries of origin like in the case of Volvo and Sweden.

So, the Chinese continued to improve with every successive model launched into the markets, knowing that one day they would get it right. Although, the Chinese are not yet there when it comes to first class automobiles, one could attest to the fact that the Chinese models that are being introduced into the market today are much more improved when compared to the earlier models launched into the country years back.

Today in Nigeria, the Chinese models are no longer the laughing stocks but are even marketed by reputable companies like CFAO Group, Coscharis Group, SCOA Group and many others.

From the sedan to pickups, Sport Utility vehicles, Mini buses and trucks, the Chinese vehicles have shown strong presence and even have dominated certain segments of the market. Commercial buses like Jinbei, Foton, Joylong and others have been given the Japanese brands like Toyota and Nissan a serious fight in their categories. Even in the luxury bus segment, the Yutong is coming up with beautiful models that are yet to be tested in the Nigerian market.

Some of these vehicles are sold all over the world including Europe. They have proved to be alternatives to those who do not have the huge sum to purchase European, Japanese and American made buses in their various categories. Brands like GrateWall, Geely, Brilliance, Chana, FAW, Lifan, Forland, JAC have continued to adorn the Nigerian roads, with many models.

While some of these models can be said to be good, others are below average and Nigerians are beginning to separate the good from the bad ones. It is therefore not surprising that brands like ZX Autos, and few others have gone under probably due to their quality and poor backup.

Aware that they could not compete in the upper car market segment, the Chinese have concentrated on the budget and lower car category to penetrate the Nigerian market. Brands like Geely, MG Rover, Brilliance, Cherry, BYD have proved that the Chinese can compete favourably in the passenger car segment.

Although the Chery and BYD presence seems to have gone down due to lack of proper push, the Geely, MG Rover and Brilliance have continued to establish their presence in the market with latest models. Geely small car, Panda, won the budget car of the year in Nigeria in 2011.

Most of the Chinese models have undergone tremendous transformations in the last few years. For instance, apart from the early Brilliance models like Grandure and Splendor, Hyra Motors had launched the improved models of this brand into the market, including the Brilliance FRVSports Sedan and hatback as well as Geely Panda.

Though the earlier models of Brilliance were produced with old Mitsubishi engines, the current models of these brands now come with Chinese made engines which are more refined with latest technologies. The Geely models, however, are the real revelations from China.

The MG Rover from China, which used to be a British brand is out of this world. The MG Rover range can give any European, Japanese or American made sedan a good contest any day. They are the hallmark of Chinese auto technology.

During a recent test-drive by the Nigerian Motoring press, the MG Rover models received accolades from the motoring press, who concluded that the models have the potentials to rule their various segments. But how long they can last is another question?

Having made tremendous improvement on the brands over the years, the Chinese brand cannot be said to have impressed its customers in terms of after-sales and warranty. Most of their customers believe that the brands offer little or no warranty on most parts compared to the Japanese, Korean and other car markers.

But it is only a matter of time, the Chinese brands would catch up with the other auto powers mentioned earlier. This leaves us with the question, “what is Nigeria really up to on the world automobile map?

http://www.vanguardngr.com/2012/05/are-chinese-brands-becoming-threat-to-others-2/

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