First look: Beijing show-busters
BY MARTON PETTENDY | 18th Jun 2004
Running from June 9 to 16, China’s largest car show - officially dubbed Auto China 2004 - attracted no fewer than 600 vehicles from manufacturers in 20 countries, including all of the world’s major car-makers.
Keen to get in on the industry action that’s actually slowed from the triple-digit sales growth Chinese-made car sales experienced in 2002 (to a 34 per cent increase last year), local makers presented a number of new concepts as American, European and Japanese brands wheeled out their existing ranges to seemingly insatiable Chinese buyers.
At least 70 new models were launched in China in 2003 and that figure should easily be bettered in 2004. Industry experts predict China's vehicle market will grow at an annual double-digit rate over the next one to two decades, making it second only in size to the US by 2010.
But the world’s fastest growing car market remains a controversial, fragmented industry, with 50 so-called "international" motor shows held across China every year and the government forcing two rival motor shows to merge prior to this year’s event.
Held at the recently completed China International Exhibition Centre outside Beijing, Auto China was be staged at a purpose-built centre which will be more than double its size when the show is next held in 2006.
That didn’t stop some major developments underscoring the market’s importance this year - not least of which was Volkswagen’s announcement it will be the official automobile partner for the Beijing 2008 Olympic Games.
"We are very excited and proud to be appointed the official partner for the Olympics in Beijing and at the same time we are aware that it is also a responsibility and challenge for us," said the chairman of the board of management of Volkswagen, Dr Bernd Pischetsrieder.
China’s largest car-maker Volkswagen-Audi, which sold 697,000 cars in China last year (up 36 per cent) for a dominant market share of more than 30 per cent, is involved in three joint-ventures in China, while all of the world's top nine car-makers have built either one or two joint-venture plants in China.
World number two car-maker Ford had the biggest presence at Auto China this year
VW plans to invest $US7 billion by 2009 to double its China manufacturing capacity to 1.6 million vehicles.
World number two car-maker Ford, a relative late-comer to Chinese manufacture, had the biggest presence at Auto China this year, with 5000 square metres reserved to showcase four new concept cars, including the surprise appearance of the Focus Concept.
Ford group brands were equally active in Beijing for the first time.
Mazda has upgraded Beijing to the same status as the world's premier shows and used the same display stand it used in Geneva and Frankfurt.
Jaguar exhibited at the Beijing show for the first time and plans to start Chinese sales this year, Volvo is hoping for a 12 per cent increase on the 2500 cars it sold in 2003 and Aston Martin will begin sales in 2005.
Meantime, GM, which will begin assembly of the Cadillac CTS in Shanghai later this year, organised a number of reveals during the show to launch Cadillac in China. GM last week also announced a $US3 billion expansion of its Chinese production capacity, from a current 550,000 to 1.3 million units by 2007.
Toyota/Daihatsu, which said in March it was expanding five times faster in China than it did when it began building cars in the US in 1984, displayed 13 new vehicles led by the Chinese market Crown to be sold from 2005.
Even DaimlerChrysler AG will spend $1.2 billion to produce Mercedes-Benz E-class and C-class sedans with partner Beijing Automotive Industry Holding Corp. DaimlerChrysler also owns an 11 per cent share of Hyundai, which recently signed a memorandum understanding with Beijing Automotive Industry Holding Co to establish a joint-venture operation in Beijing.
More than 90 per cent of China's passenger car market, which accounts for half the total industry, is currently controlled by foreign brands such as Volkswagen, General Motors, Honda, Citroen and Audi.
The Blue Ovals’ Focus show car aside, new concept car activity was led by China’s domestic manufacturers, which showed a number of interesting products, including:
Chang’an Yangtze River Sturgeon MPV
A RADICAL departure from Chang’an Automotive’s existing range of (largely Suzuki-derived) vans, the Yangtze River Sturgeon is a future people-mover with coupe-like profile and RX8-style side barn-doors.