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Top10 Most Unpopular Cars in China (Update)

Joanne From www.gasgoo.com | July 31 , 2007 19:15 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. International automakers have been racing to grab their share of the profits by launching new models and increasing production throughout their facilities 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

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

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 has a plan for a redesign. Analysts have commented, Vitz has slim chances of a rebirth.

6 Suzuki Liana

Top10 Most Unpopular Cars in China (Update)

Suziki Liana's half year sales of 5,416 units were below expectations despite the considerable discounts offered to customers.

Liana sedan was launched by Changhe Suzuki--- Suzuki's joint venture---in Nov. 2005. Sedan sales flattened when the joint venture release their hatchback version of the Liana. The Liana also faced tough competition from Chang'an Suzuki, another Suzuki's joint venture in China. Though this model employs the original Suzuki M16A engine imported from Japan, most of the remaining components are imported so it's comparatively expensive.

This Jun., Changhe Suzuki sold a record-low 387 units of Liana. 

7 Hyundai Sonata
 
Beijing Hyundai, Hyundai's joint venture in China, sold a mere 7,808 Sonatas this past year. This model proved to be successful in the European and American markets, but the China market proved to be different.

NF Sonata, the last generation Sonata came to China in 2005, and the next generation model just hit the market earlier this year. This model was primarily targeting VW Passat, Toyota Accord and Buick Regal consumers, but it failed with consumers from lack of brand recognition.

8  Ford S-Max
The S-Max minivan posted wholesale volume sales of 2,260 units in its first half of this year. S-Max's sales in its debuting month of Mar. topped one thousand units, but later in June declined to a mere 173 units.

Unlike the Focus, Ford's cash cow in China, which grew by 66% to 55,676 units during its first six months, the S-Max hasn’t been so profitable for Ford. As a result of the recent sluggish MPV market, the S-Max, Europe’s "Car of the Year" failed to win customers in China. S-Max used to be priced between RMB219, 800 and RMB239, 800, but now it is being offered at discounts as low as RMB10, 000.

9 Toyota Prius

Toyota also suffered huge losses in China with its Prius. The Toyota Prius had half-year sales of only176 units. Such low sales numbers were primarily due to, one its prohibitive price and two China’s lack of a truly eco-friendly automotive consumer population. 

Toyota's hybrid vehicles hit a landmark 1,000,000 unit this past May. In addition the Prius is now a global sales leader with a record 757,600 units sold since its Japanese introduction in 1997. But with a 300,000 RMB price tag and only an offering of a 1.5L engine has discouraged Chinese consumers. People here would rather buy a well-equipped high-or-medium-level sedan.
 
The Prius was put into production in China in late 2005 by Sichuan FAW Toyota, one of China's joint vehicles.

10 GM Park Avenue

Top10 Most Unpopular Cars in China (Update)

 Only 934 Park Avenue’s were sold in its first six month of production.

This model was formerly known as Holden WM Caprice/Statesman. Park Avenue then took on the important task of upgrading the Buick brand, but its redesign didn’t do anything for its low market share. Park Avenue was set to replace Buick Royaum as their flagship model, the latter being out of production in order to make way for Park Avenue, but people's doubt’s about its origin and lack of marketing baulked the highly-expected sedan.

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