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Top10 Most Unpopular Cars in China

Joanne From www.gasgoo.com| July 26 , 2007 17:29 BJT

China along with its booming economy is also privy to a booming auto industry. With an annual growth of over 20 percent, it’s now the world's third-largest auto-maker in the world. All the international automakers are in a race to get their share of the profits, launching new models and increasing production in China. Some have models have thrived in China while many others failed.

In the first half of this year, 34 new models have hit the market, and 21 of those were revamps of older models. Of those only a few flourished, so now Gasgoo will list those that flopped in The Top 10 Most Unpopular Cars in China.

1. Honda's Acura TL

Top10 Most Unpopular Cars in China

Last Sep., One of Honda's most popular models was released in China with hopes of American like popularity. Honda main model in China, The Acura TL, sold less than 200 units during H1. Acura encountered a Waterloo for the unsuccessful marketing strategy.

The distributor offered a price-cut last month. Acura TL's advanced equipments like the intelligent key, navigation system were applied only on the demand of customers who would pay the bill. In contrast, most imported premier cars are readily equipped, so it's no wonder that Acura TL faced such a low sales result.

2 Mitsubishi Galant
Galant was released in China last Nov., but its sales were declining during the first half of the year. The half-year result for Galant is 4062 units, not even half of Toyota Camry's monthly sales, though both models belonging to the same D-segment.

Initially the 2.4L version was priced at RMB199, 800 to 219,800, giving Galant a price advantage competing with Accord and Camry, but as price-cuts of Accord, Mondeo and Sonata went further, and lack of brand charisma came out, Galant's future in China gloomed.

3. Fiat Perla
Fiat Perla went on sale last Sep., which is developed by Fiat and its Chinese joint venture partner. The Italian automaker chose China as an all-new model's debut place for the first time, and this model was Perla. Although this sedan has an exclusive 1.7-liter engine and a Europe-developed chassis, Perla has half-year sales of roughly two thousand units.

Perla was nicknamed as "car of revival" for the loss-making Nanjing Fiat Automobile, but for its resemblance with Fiat Siena, which is RMB20, 000 cheaper than Perla, customers feel reluctance to buy this new car. Currently Perla has monthly sales of only 300 units, well below the company's expectation.

4. Kia Rio

Top10 Most Unpopular Cars in China


The new Kia Rio's performance fell short in spite of several price-cuts. The automaker, Dongfeng Kia, eyed to sell more than 5000 units per month, and considered the model as its bread and butter, but since it's launch early this year, Rio only sold out 4996 units up to now.
The old-generation Dongfeng KIA Rio could never be outperformed by the current new one.

5. FAW Vitz
Tianjin FAW Xiali Automobile Co sold 904 units of Vitz during the first half of year.

Since Toyota announced its plan to put the new Yaris into production next year, Vitz, which actually are the same model, is being threatened. Under the fierce competition from Polo, Fit and Peugeot 206, Vitz's sales are declining since the introduction in late 2002. The automaker lowered prices for the third time this Jun. on its Vizi cars and planned to redesign it, but analysts say that Vitz has slim chances of a rebirth.
(to be continued)

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