China is atleast 10 years away from producing a globally competitive car

7 24

Whenever we hear about China, their products especially cars, an image of a dominant economic prowess springs into our imagination but is it really so?!

A recent research conducted by Bernstein Research claims that contrary to popular belief in countries likes ours, China has still quite a lot of time before it could be able to produce a vehicle that could compete with established global car makers.

It isn’t however surprising as pick any established global car maker and all of them took far too long before making a headway in the international automotive stage. The Koreans with Hyundai and Kia have now began to make impression on the global front after roughly a couple of decades.

Bernstein Research issued a 200 page long study of Chinese automotive industry which it made after going through the trouble of purchasing two Chinese-made cars, importing them to Europe and disassembling them down to every last nut and bolt.

The study also included in-depth interviews with CEOs at each of the major manufacturers, including Great Wall, Chery, Brilliance and SAIC among others. Researchers found that by and large, global partners aren’t holding up their end of joint venture deals, with the vast majority of foreign automakers seemingly not taking the Chinese market seriously.

The one exception to that rule, according to Bernstein, is General Motors and SAIC. GM has pumped a staggering amount of cash into China, and as a result, SAIC seems quite far ahead of its local rivals on the design and engineering front as the study found that most of the Chinese car were simply reverse-engineered examples of foreign models, with the Toyota Corolla being the most popular. That’s due in part to the fact that Chinese automakers spend $100 million a year on research and development on average while to give you an idea, an established automotive company like Volkswagen or Toyota spends closer to $1 billion.

You can read the extensive write-up (analysis) of the report on TTAC.

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7 Comments
  1. Afnan Aftab Motiwala says

    it took 40 years for japanese , 20 years for koreans n I guess 10 years for the chinese…

  2. Gulraiz Ahamd Pitafi says

    I think they can do it…

  3. Afnan Aftab Motiwala says

    now a days u can see that slowly chinese are coming up with brands n all , before that they only use to supply for others or make fake products but in last few years they are making their own brands n i m sure those will compete the giants of korea n japan in the future , who would have thought that samsung will ever give tough time to sony but things change

  4. Muhammad Amir Iqbal says

    it is for all of those who think that china is behind then others. here it comes bmw 3 chinese version. new motor company launced Quros motor co. http://www.qorosauto.com/en/product/quality bebut first car in Geneva 2013 auto show. A respectable car.

  5. Fouad Dar says

    and Pakistan is 100 years away from even thinking of making some thing of his own 🙂

  6. Fouad Dar says

    china is a different world, china is good for countries like us.

  7. Qamer Iqbal says

    Yes

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