Chinese auto companies need to learn how to conquer the European market


    The Jiangling Landwind "collision door" incident has passed, but the negotiation atmosphere between the EU and China on auto trade issues has not been eased. According to sources, the EU is brewing to start negotiations with the Chinese auto trade. And an English newspaper published, "The EU has accelerated preparations for the war with China."

    On November 7, a German automotive company led by BMW, Mercedes-Benz and Volkswagen attended the 2005 China International Industrial Subcontracting Exhibition. The German Automobile Industry Association’s general representative in China Wagner, China has two purposes: First, to boost the whole of Germany The second is to help Chinese auto companies enter the European market smoothly.

    "China Business News": I remember that early this year, the German Automobile Industry Association Chairman Belbod Gottschag also said that he hopes more Chinese cars will be exported to Europe. However, recent news has said that the EU is ready to impose sanctions on Chinese auto exports. From your understanding of Chinese autos, is China's autos suspected of dumping?

    Wagner: After a new product enters a market, it will surely cause some controversy. This is the case for Chinese cars like Landwind entering the European market. However, from what I have learned, it is not cheap that China's autos like Landwind are sold abroad. Their prices are actually higher than their domestic prices. Of course, they are definitely cheaper than the European market.

    Therefore, I don't think Chinese cars exported to Europe have been suspected of dumping.

    “China Business”: Recently, the issue of China-Europe auto trade is more sensitive, and the fuse is supposed to be the “crash door” incident at the Frankfurt Auto Show. What do you think of this?

    Wagner: In Germany, ADAC has certain authority in the market, but there is no government background, so their conclusion is not an official conclusion. After the incident occurred, the land dealers quickly commissioned a formal and open European standard crash test by TUV Rheinland, an authoritative European testing agency, to recover the losses to a certain extent. I think this is also a case of classic marketing since the Chinese auto companies exported to Europe. This crisis management method has been successful.

    "China Business": In the face of future EU sanctions on Chinese auto import and export, what do you think Chinese auto companies should do?

    Wagner: China's auto and parts companies must work hard on product quality. In addition, Chinese auto companies need to further improve their language skills. We once assisted German auto companies in purchasing parts and components in China. In the face of two companies with similar strengths, we finally chose the one with easier communication.

    In addition, Chinese auto exports also need to strengthen cooperation with insurance companies, because in the European market, as long as a car parts problem, companies must recall all the same batch of vehicles, and the best way to deal with this kind of incident is the company's product Insurance.

    Finally, I think that Chinese auto exports should learn from Japanese companies well. Japanese companies entering the foreign market enter with an overall image. They are very united and jointly deal with possible risks. However, Chinese auto companies are relatively isolated, and Chinese companies should have more cooperation to learn how to conquer the European market.

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