Beijing Auto Show: Much light with a bit of shadow

There are two major impressions that I have taken away from the recent Beijing Auto Show: A remarkably self-confident presentation of the German auto makers, rather unexpected in this intensity, and a demonstration of strength for the Chinese car manufacturers, entirely anticipated for this most important vehicle exhibition on their home turf.

It is no exaggeration to say that the Germans have stolen the show from all other international JV manufacturers with a quite extraordinary presentation of their most recent model ranges. Volkswagen’s own exhibition hall, in which the firm from Wolfsburg has regrouped all its 7 brands operating in the mainland, just displays the group’s current domination in the China market. While we have seen some new concepts for electric powertrains, Volkswagen is not really considered a front runner in the alternative energy race. Nevertheless, the company taps into the nerve of time with its advanced offering for fuel efficiency through electronic injection, turbo technology and engine downsizing, and builds its green image with the new ‘Think Blue” campaign.

Also, BMW and Mercedes have made clear reference to the importance of China in their marketing strategies. They, too, respond with their refined conventional vehicle technology to the increasing need of efficient fuel consumption in the premium segment. In addition, we have seen their determination to shape the luxury car market in the mainland beyond the traditional sedan type of vehicle by showcasing advanced bodystyles such as hatchback, station wagon, and convertibles, not to speak about the model declination within their Smart and Mini brand portfolio.

It was less surprising to see the independent domestic car brands taking full advantage of the auto show to show the fruits of their recent research and development to the public. China has become one of the most competitive automotive market places in the world, where vehicle usage and quality requirements evolve quickly, and in which a comprehensive range of product offer is the only way to become and remain a significant market contender. Most of Chinese independent brands have understood this, and started a vigorous campaign of product diversification. As a logical result, Chinese car brands have literally flooded this year’s Beijing Auto Show with new car models across all vehicle types and -sizes.

With this, they have gained the attention of Chinese car consumers, above all with some interesting and quite stylish vehicle prototypes that thrillingly translate how domestic car makers envision the future of the automobile. When it comes to the new models ready for Chinese roads, the offering has been less exciting, though, and rather ordinary. It seems that many Chinese domestic car makers, including BYD and Geely, choose the allegedly safe path of common design which does not create much of a sensation, either positive or negative. This may save them considerable sales potential in the Chinese mass market in the near future, while such an approach will be more challenging in terms of distinct brand building over time. On the other hand, more “daring” manufacturers in terms of vehicle styling, such as Shanghai Automotive with its MG brand, are set to serve a niche market – at least in the short term.

While vehicle designs of domestic car manufacturers may leave some expectations unfulfilled, the perceived quality in terms of vehicle assembly has largely improved. Various car body elements are fitting much better together than what we have experienced just one year ago, and gaps between opening and closing parts (hood, doors, and trunk) are more precise and regular. However, as much as exterior quality is deemed better, interior materials and level of workmanship are still pretty basic, and overall inconsistent. Given the importance of vehicle interiors in this market, Chinese domestic car maker have to implement a considerable upgrade in this respect if they want to rise as convincing contenders against foreign car brands.

In summary, the Beijing Auto Show was a demonstration of ambitions of all car manufacturers in the Chinese market, and the domestic auto makers in particular have made a step forward in their quest to challenge their international peers. While some homework remains to be done, their performance in Beijing suggests that they are on the right way.

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.