The stage is set for a greener tomorrow

The Beijing Auto Show 2010 opens its doors on 25th April, and sets a global automotive highlight already early this year. This is not only due to the fact that the Chinese auto market has taken the world’s top spot in 2009, but also this event is pretty much the only occasion where all relevant industry players are gathered. The world’s renowned auto shows, such as Detroit, Geneva, Frankfurt, Paris and Tokyo certainly play an important role in the industry, but nowadays they are lacking of comprehensive participation， it is in Beijing this year, where we can get a transparent view about what defines the automotive landscape today and tomorrow.

Auto shows are seen as platform for car manufacturers to showcase their brand- and product propositions as well as their vision for the future to the general public. The big events are usually glamorous with huge costs involved, and one of the reasons for withdrawal from such an auto show is the expectation of an insufficient return on investment, particularly in times of declining sales and cost pressure. While direct vehicle sales play a minor role, the real assessment of return on investment lies in the question whether car manufacturers can conclusively demonstrate their ability to address market needs, both at present and in the future, make their contribution to benefit the industry development as a whole transparent, thus raise interests in their brands and products.

Here are the aspects which I will be looking into while visiting this year’s Beijing Auto Show …

… When it comes to green technology:

The recent acceleration of discussion about green technologies has made alternative energy offer a common presence at each auto show worldwide. Hybrid cars and electric vehicle propositions have already been seen at last year’s Shanghai Auto Show. And this year, reportedly 95 new energy vehicles will be showcased. The competency of car makers in this regard can be judged by the degree of how close they have reached the stage of commercialization. In other words, the development of prototypes is no longer the real measure of progress, but the capability of mass-producing new energy vehicles, including consideration of stable product quality and affordability.

The development of alternative energy vehicles also involves another dimension, namely insufficient car experience in emerging car markets, such as China. From our market research surveys, we understand that the level of consumer knowledge about alternative energy technology is relatively low. I am interested in finding out what are car manufacturers doing to educate consumers about functioning and benefits of hybrid and electric cars.

Green technology in a more general view refers to eco-friendliness and fuel efficiency. Beside the efforts to develop new energy powertrains, we need to look at how car manufacturers tackle the reduction of conventional energy consumption while ensuring vehicle performances and driving dynamics. Engine downsizing and turbo technology are the key words here.

… When it comes to brand- and product offers:

While the provision of reliable technology and acceptable quality levels remain a valid discussion for Chinese car manufacturers, the Beijing Auto Show allows us to check upon the developments in the area of design and vehicle styling, both from domestic as well as foreign brands. The basic question here is to what degree vehicle manufacturers have incorporated styling elements to appeal Chinese tastes, while at the same time ensuring a modern and advanced appearance to be able to succeed in overseas markets. Given the huge market potential among young consumers in China, the combination of Chinese values and Western lifestyle in style and design will be one of the success factors for car makers in the future.

The Chinese auto market has become one of the most competitive market places in the world with a multitude of brands of different origins. Most of the market protagonists, international or Chinese, are operating with a multi-brand strategy in the mainland to exploit the potential in various market segments. What does each brand stand for, what are the distinct features of each brand, and how well do brand- and product propositions match? The answer to these questions will help us to assess sustainable success.

… And finally:

Beside current and imminent product portfolios, auto shows also offer us a glimpse into the future. Concept cars make a statement about the car maker’s vision about the long-term evolution of the market, with some of the ideas succeeding to be incorporated into future car developments. We expect more than 60 such statements this year. While we will most likely never see these concept cars in their entirety on the roads, we can, nevertheless, obtain an idea of the relevance of the underlying concept, and its fit into the corporate vision of the brand.

Despite the huge investments involved, I believe that the Beijing Auto Show is a formidable opportunity for the auto industry to connect with the public by demonstrating its responsible actions and showing its appealing offer. For a greener tomorrow, and a successful future for itself!

About the authour: Klaus Paur, Gasgoo's columnist, is Regional Director Automotive for North Asia at TNS China who has over 20 years of experience in marketing and market research, 13 of which have been spent specialising in the automotive industry.