Analysis: Increasingly short development times becoming the norm for the Chinese SUV industry

The number of new SUV models released this year has been nothing short of astounding, with many of those concentrated in the 60,000 RMB to 120,000 RMB price range. However it is worth noting that the number of crossover vehicles being marketed as SUVs is growing. 

Unlike in the past, where auto R&D and design of a new model took four to six years to complete, many crossover vehicles require little work done on them before release. There have been stories of manufacturers boasting that it only took them 10 months to develop a brand new vehicle at its launch event. This is mainly due to the fact many new models are built on platforms used by other vehicles, while their engines and electronic systems are also purchased. As such a lot of testing for these parts has already been completed in the past, with design being the only substantial work left to be completed. One can only imagine if the design is lifted from another vehicle, which is unfortunately still the case for several Chinese vehicles.

The deluge of new models being constantly introduced with little regard for quality is a matter of concern for the Chinese automotive industry, as it has the potential to turn away increasingly large number of buyers and cause them to lose interest in the industry. Clearly of the numerous brands and models available in today’s auto market in China, only a very small number have managed to achieve any level of considerable success.

The elements a successful brand needs to attract and retain customers is a commitment to quality and comprehensive service. With brand new models being introduced to the market in such short amounts of time, consumers become likely to doubt whether or not manufacturers still remain committed to this promise of quality. This is especially true in the current Chinese SUV market. There is no reason to rush a vehicle just to get it out to market: One only needs to look to the successful examples of the Honda CR-V and VW Tiguan, both of which spent a considerable amount of time in development, for proof. Other successful SUVs that were not rushed to market and are now highly successful include the Buick Envision, Toyota Highlander, Ford Edge and GAC Trumpchi GS8.

The SUV market will continue to remain successful without the glut of inadequately developed models being released day after day. It is important that Chinese automotive manufacturers remember this.