China auto news this week(2007.08.27-2007.08.31)

Luxury brands Lexus and Acura have different destination in the Chinese market. Lexus is quite popular these days while Acura, Since Acura hit Chinese market last September, it has sold less than 200 vehicles in almost a year. So, to foreign automakers, making a right strategy for their specific model is very important.

On the other hand, Skoda Octavia SUV, Dongfeng Honda's Inspire will be launched into the market.

The following are top news this week:

Lexus LF-A to be sold at $264,700 in China
 
By Ally   From:www.gasgoo.com August 30 2007
 
Shanghai. August 30 (Gasgoo.com) - Thirteen days after Lexus LS600hL went on sale in Beijing, Toyota unveiled a plan to introduce the Lexus LF-A sports car into the Chinese market in early 2008.

"We are planning to import the latest Lexus models to the Chinese market at the earliest time possible," said Zeng Lintang, vice president of Toyota Motor (China) Investment Co at a test drive activity for Lexus LS600hL recently.

"Lexus LF-A blends the performance of an exotic sports car with the luxury refinements of a Lexus, and we anticipate that the model will be sold at more than 2 million yuan ($264,700) here in China."

The Lexus LF-A made its first debut at 2005 Tokyo Motor show, and the model will finally start production early next year after passing various collision tests for the past two years.

It features an engine capable of developing more than 500 horsepower from a displacement of less than five liters. With a combination of optimum gearing, weight and aerodynamics, the LF-A could reach a peak velocity of 200 miles per hour.




Honda Acura sells less than 200 vehicles in China
 
By Tony   From:gasgoo.com August 30 2007

Shanghai. August 30 (Gasgoo.com) – Since Acura hit Chinese market last September, it has sold less than 200 vehicle in almost a year. However, the company’s goal was to sell 3000 vehicles in a year.

With the exception of a SUV model, Acura MDX, the sales of other Acura models, Acura TL and Aura RL are abysmally small.

At an Acura store in Beijing, car buyers are interested Acura MDX only. Few people are interested in Acura TL and RL, which the company hoped to drive up Acura sales.

"For such a high price, we'd rather choose BMW or Audi," car buyers told reporters.

In Beijing car market, Acura TL is sold at 389,000 yuan ($51,523) and Acura RL is sold at 660,000 yuan ($87,417).
Honda Acura sold 106,000 vehicles the United States market in the first seven months this year, down 7.5 percent from a year earlier. In July, Acura sold 14,000 vehicles in the US market, down 21 percent year-on-year. 




Women account for 30% of Chinese car buyers
 
By Joanne Jiu   From:www.gasgoo.com August 29 2007

Shanghai. August 29 (Gasgoo.com) --A recent survey shows women car buyers account for a record high 30.9% of the total Chinese car buyers in 2006. And the percentage will continue to rise in the future, experts say.
 
The survey, conducted by Sinotrust, a leading marketing research and consulting company, has polled 15,000 car owners in 24 Chinese cities. The result shows that percentage of female car buyer climbed from 20.3% in 2002 to 30.9% in 2006.

Chery Automobile, the leading Chinese brand automaker, launched its iconic QQ city car in May 2003. Now being revamped several times, Chery QQ is still the most preferred model by Chinese women consumers. Its cute outlook and mini size appeal a lot to Chinese young ladies.
 
Top10 models most preferred by Chinese women:

Chery QQ
Honda Fit
Nissan Tiida
GM Spark
VW Polo
Suzuki Swift
Chevrolet Sail
Peugeot 206
Audi A4
FAW Vizi (the redesigned model of Toyota Yaris)

Chery QQ is Chinese women's favorite car

More local automakers are casting their eyes on the potential women buyers. From the advertisements to the marketing survey and to the automotive design, local automakers has been closely watching the eve rising and changing demands from female consumers.

During the past five years, the Chinese auto market grew fast. In 2002, about 125,000 units of passenger vehicles were sold in Chinese market. In 2006, the total number went up to 416,000 units.

A Study made by CNW, an American marketing research company, shows that about 49 percent of new car buyers are women, and 80% of all the families planning to buy a car are influenced by the female family member. A separate survey shows female Japanese car owners' automobiles compromise 35% of the country's total vehicles in use; 35% of the cars traded in the French market are women-catering cars.




Dongfeng Honda to produce Inspire in China
 
By Tony   From:gasgoo.com August 29 2007

Shanghai. August 29 (Gasgoo.com) – Dongfeng Honda is set to produce Honda Inspire locally in China, Chinese media reported yesterday.

Honda Inspire model is similar to Honda Accord in both appearance and car size, but it is better than Honda Accord. The model will feature CMS, E-Pretensioner and HiDS.

Targeting a similar market segment with Honda Acura, Honda Inspire may herald the coming of Honda Acura to Chinese market.

Chinese media said that while Accord, a middle-end car model, are produced by Guangzhou Honda, high-end Accord models will be produced in Dongfeng Honda.

Honda may try to copy its success in North America to Chinese market: while Guangzhou Honda competes with Camry in middle-end market; Dongfeng Honda will invade high-end market by introducing luxury car models.

Guangzhou Honda said the company is ready to launch the eighth generation of Accord by the end of this year or earlier next year.




Skoda Octavia SUV to be introduced to China next year
 
By Jorvan   From:www.gasgoo.com August 27 2007

Shanghai. August 27 (Gasgoo.com) - Skoda will introduce a SUV model next year to diversify Skoda's lineup, said Fu Qiang, manager of Shanghai VW Skoda Brand Department.

Prior to this car model, Shanghai VW Skoda had introduced two sedan models Fabia and Superb to be produced locally in China. Now Skoda SUV models Roomster and Scout are the two Skoda models that have not been introduced to the Chinese market.

Scout is a SUV model based on the platform of Octavia. In the body size, it is a little bigger than Octavia.

The four-wheel drive SUV Scout is powered by a 2.0L TDI diesel engine, and the 2.0L FSI engine is for alternative use.