Going Abroad: Chinese Auto Brands Go to Southeast Asia
2024-08-12
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Source: Overseas Network
"Many Chinese electric car brands have entered Thailand, which gives me more choices. My family actually already has a BYD car, but I still want to buy a Chinese brand electric car." said Kenruo from Thailand.
As Chinese auto brands are welcomed by consumers in Southeast Asia, more and more Chinese brands are actively exploring the market. On July 29, Xiaopeng Motors announced that its G6 right-hand drive pure electric SUV has successfully landed in the Singapore market and officially started product pre-sales; on August 2, Geely Group's electric vehicle brand Zeekr announced its official entry into the Singapore market, and plans to enter the Indonesian market in the fourth quarter of this year, and enter the Malaysian, Japanese and Korean markets in 2025; on August 3, Chery Automobile held an event in Jakarta, Indonesia, to celebrate the delivery of the 3,000th Chery OMODA E5 model in Indonesia this year.
The market share of Chinese auto brands is also continuing to rise. The New York Times reported that the Thai market was once seen as the territory of Japanese cars, but the situation has begun to change. Japanese auto brands accounted for 86% of new car sales in Thailand in 2022. In 2023, as Chinese auto brands gradually expand their market share in Thailand, the share of Japanese auto brands has dropped to 75%.
According to the Indonesian Automotive Industry Association, Chinese brands accounted for 43% of electric vehicle sales in the first half of 2024. According to the Thai Automobile Association, in 2023, the total number of electric vehicle registrations in Thailand will be about 76,000, accounting for 12% of the total number of car registrations, of which the top four are all Chinese brands, and 8 of the top ten are Chinese brands.
The Los Angeles Times quoted an independent auto analyst as saying, "Southeast Asia is a bridgehead for Chinese automakers, especially Thailand and Indonesia, both as a market and a production base. Now that Chinese brands have the advantage of electric vehicles, they are taking advantage of the opportunity to take the initiative." Li Mingcai, executive vice president of Chongqing Changan Automobile Co., Ltd., told People's Daily Overseas that as the competitiveness of China's auto industry supply chain gradually improves and the internationalization strategy of Chinese auto brands gradually matures, the influence of Chinese auto brands is expanding.
According to the Singapore Straits Times website, the Chinese electric car brand Zeekr recently debuted in Singapore, officially entering the country's high-end car market. Although Chinese auto brands such as BYD have been expanding their influence in the Asia-Pacific region, Zeekr is one of the few brands that can compete with brands such as BMW and Mercedes-Benz in the mainstream luxury car field.
"The increasing popularity of electric vehicles in the Asia-Pacific region means huge potential for us," said a relevant person in charge of Zeekr. "But as a new brand without heritage, Zeekr needs to gradually establish its own image. We must lay a solid foundation and win the trust of customers by providing reasonable pricing and after-sales support."
Cui Dongshu, secretary-general of the National Passenger Car Market Information Joint Conference, told the People's Daily Overseas Network that although China's automobile production and sales scale continues to rise and product competitiveness has increased, due to the short time of entering the Southeast Asian market, local awareness of Chinese automobile brands is still low, and automobile companies still need to continue to deepen their market presence.
Li Mingcai told People's Daily Overseas Network that building a brand is a long process, and the core is to create competitive products while providing services. According to Li Mingcai, in order to quickly respond to customer needs, Changan Automobile has launched the "Project No. 1" action in China, which will be gradually introduced overseas in the future to continuously improve its ability to serve customers in overseas markets.
"Brand building is a long and complex process involving multiple key elements, the purpose of which is to ensure that the brand can effectively communicate with consumers and establish long-term trust and loyalty." Sun Xiaohong, Secretary General of the Automobile Internationalization Professional Committee of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, told People's Daily Overseas Network that in this sense, the characteristics of automobile products themselves must be taken in the form of brand building, adhere to long-termism, enhance brand value and brand image from the perspective of brand positioning, convey brand values and concepts, and adopt reasonable marketing strategies, constantly adapt to the market environment and actively optimize, and improve their overall image through soft factors such as values, mission, and vision. (Li Fang)
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