Shanghai, December 9 (Gasgoo.com) China's automakers will never give up their ambition to enter the European market after export failures this year, and will keep adjusting their strategies, such as exploring the Turkey market, the gateway to the European Union, China Daily reported yesterday.
After establishing a factory in Mexico, Changan Auto was mulling expansion in Turkey; Chery Auto has decided to build a joint venture there; Geely Auto and Great Wall Motor have also started recruitment in this country; and Dongfeng Motor Corp plans to invest $250 million in a new Turkey plant.
A Chery executive said earlier that the Turkish government was keen to invite Chinese automakers to build factories. Chery and a local dealer are set to co-fund a new factory project in Turkey. The total investment would amount to $500 million and the annual output would reach 100,000 units.
Turkey was an ideal choice for its favorable geological location and cheap labor force. An increasing number of Chinese carmakers are marching into Turkey, making it a base for Chinese vehicles to enter the European market, said an auto industry expert in China.
Kevin Chen, CEO of Gasgoo.com, said it was urgent for Chinese auto companies to change their attitude. They should be more than just traders and use overseas purchasing, R&D and manufacturing to build up their core competitiveness, he added.
Many Chinese auto companies like Changan, Chery and Geely have set up factories overseas, but these facilities are just for assembly. The auto parts are manufactured in China and then shipped to the overseas plants to be assembled and sold.
Changan, Great Wall, Brilliance, Jianghuai and Lifan exported only 745 vehicles to Europe in the first nine months. A way out is to build factories there for producing vehicles locally, just as global automakers have been doing in China.
