China auto brands turn to home market

As US and European automakers face mounting difficulties amid the economic meltdown, Chinese home brands are trying to grab more domestic market share.

At the ongoing Guangzhou Auto Show, one of three top car shows in China, Chinese cars are attracting a lot of attention. Carmakers say as overseas auto producers face tremendous difficulties and cut production volumes and jobs, local brands should seize the chance and win back market share in the world's second biggest auto market. But the first task is to produce high-quality cars.

Wei Jianjun, Chairman of Great Wall Auto Holdings said "We have to change the low-price, low-quality image of Chinese products. Only high-quality products with high added value can set up a good brand and sell well."

China's auto markets are also facing decreasing demand. Passenger car sales grew 21 percent in first quarter year-on-year, 11 percent in the second quarter. And in the third quarter, it decreased 1.4 percent. Carmakers say this is the first time they have seen that happen during this past decade, and they are reallocating their resources to better deal with their dropping car sales.

Liu Jinliang, Vice President of Geely Holdings Group said "We have production bases in the north, east and south of China. When we finish our production network, our efficiency and market penetration will be improved, cutting our operational costs and increasing profit margins."