Foreign-invested automakers in China have been exploring new strategies since mid-2001, when China's WTO entry was almost a final, in an attempt to secure market share, sina.com reports.
The result was an jump in the number of different cars available on the market.
Volkswagen Shanghai launched Bora sedans equipped with 1.8L engines, similar to those used in the Audi V6 and Passat. The sedan, priced at 170,000 to 230,000 yuan, was expected to enter market early 2002.
The fourth-generation Polo car newly developed by VW was on display in Shanghai in December 2001 and mass production started in January this year. The car will be available on the market in April.
VW will not rule out the possibility of producing economy sedans -- priced lower than 100,000 yuan -- in China, said Zhang Suixin, chief representative of Volkswagen (China) Investment Co.
While the German auto producer, which dominates more than half of China's sedan market, appeared content with its achievements in China after nearly 20 years' hard work, fellow German companies BMW and Mercedes-Benz worked hard to increase sales of their products in China.
US-based GM Shanghai updated three Buick models -- the GL8, G and GL -- in 2001. The company said it intended to increase prices and add features to vehicles to sharpen the companies competitive edge. It manufactured 27,000 Sail sedans and sold 22,000 by November of 2001.
Japanese automakers saw falling sales in China after June 22, 2001, when China imposed 100 percent special tariffs on autos imported from Japan. After the Chinese and Japanese governments signed an agreement to remove sanctions, Japanese auto traders recovered somewhat.
Honda Guangzhou Auto Co said it would boost annual production of sedans to 12,000 in China. It plans to manufacture 45,000 Accords and 10,000 Odyssey sedans this year. It also plans to revamp and produce a mini-car "Fit,'' a best seller in the Japanese market at present. The company further announced its intention to invest 1.16 billion yuan in overhauling a workshop with an annual production capacity of 120,000 units.
Shenlong Auto Co turned out more than 52,000 Fukang sedans in 2001, but sales did increase significantly year-on-year. It intends to market 100,000 sedans in 2003 and expand the number of models it offers to six in 2004.
Jiangsu Nanya Auto Co Ltd, a 50-50 joint venture between Chinese carmaker Yuejin Group and Italian Fiat Group, said they would capitalize on a boost in China's car consumption. Its new model Palio hit stores nationwide on January 28, 2002. The Palio model, likely to be priced around 100,000 yuan, made its debut on January 22 in Chengdu, capital of Southwest China's Sichuan Province. Some 30,000 Palio sedans will be produced in 2002.
Chongqing Chang'an Suzuki Auto Co unveiled the Antelope-1300, the latest in its Antelope series, in 2001. Antelope cars are equipped with 1.0L to 1.3L engines.
Jointly developed by Changhe Aviation Industry Group and Suzuki Co of Japan, the Big Dipper, a small multi-purpose vehicle, rolled off the production line of Jiangxi Changhe Suzuki Auto Co Ltd earlier this year. It is based on the WagonR, which sells well in Japanese, European and American markets.
( March 26, 2002)
