Foreign Car Makers Eager to Enter Chinese Market

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Last updated at: (Beijing Time) Tuesday, December 18, 2001

Foreign Car Makers Eager to Enter Chinese Market

As the date for lowering tariffs on imported cars is approaching, Benz, BMW, Audi and other European and American carmakers are all overjoyed of the good opportunity and are in full gear to "drive" into China's market. However, Japanese carmakers seem to be very anxious since China's 100 percent tariff on Japanese cars has not yet been lowered.

BMW and Benz's Strategies

Prices on imported cars will be generally cut from 12 percent to 15 percent after tariff is cut starting on January 1 next year. This is beyond doubt a prime opportunity for imported cars to enter Chinese market.

BMW and Benz have already carried out their strategies to get into China's market.

BMW

On the second day after China's entry into the WTO, BMW opened its first exhibition hall in Guiyou Building in Beijing.

Benz

Benz also exhibited its SL500 open wagon in Shanghai not long ago to show its sincere intention.

Others

In addition, Rolls-Royce , Audi and other car-makers are also mapping out plans to enter Chinese market.

Japanese Carmakers Felt Sullen

Compared with the "excitement" of European and American car manufacturers, Japanese carmakers felt unhappy. China imposed a 100 percent special tariff on Japanese cars exported to China starting from last June since Japan imposed sanctions against China's green onions in last April. This has landed the Japanese carmakers in an unfavorable predicament.

As the world third large carmakers, Japan's Toyota Company representative said to reporter that under such tariff levying, it is almost impossible for Japan to export its whole cars to China. TOYOTA hopes that two sides can solve the disputes as soon as possible.

Japan Pins Hopes on Joint Ventures

Japanese carmakers pin more hopes on its joint ventures in China because these companies will not be influenced by special tariff imposition.

Toyota Plans to set up two new car platform bases in Tianjin next year.

Mazda also will assemble travel sedans from 2002 to fix its position on China's relatively-cheaper car market.

Nissan is also busy to set up a joint venture with China's Dongfeng car company.

Other Reports

China's Auto Tariff to Be Cut to 25% in 2006 after WTO Entry

With the nearing of China's entry into the WTO, we've seen China's automobile industry also step up its pace of opening to the outside.

Customers, Government officials, and domestic automakers are viewing from different angles the impact upon them, which is brought by China's WTO entry, a landmark event of great importance to suggest China's further opening to the outside world.

Foreign Auto Giants Rival for China's Potential Markets

Manufacturers from Europe, US and the Republic of Korea (ROK) have recently stepped up their automobile exports to China, hoping to snatch market shares from the hands of their Japanese rivals.

Japan was formerly a major automobile exporter to China. Prior to June this year, it accounted for 55 percent of Tianjin's entire automobile imports. However from June sales began to go downhill and about 3,400 assorted Japanese cars have been stock-piled in Tianjin, according to statistics.

By PD Online Staff Li Yan

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