By: Chelsie Alquinto and Julian Cardenas (with words from Carlito De Leon)
Since its economic boom in the 1990s, The People’s Republic of China has asserted itself as the dominant Asian powerhouse, with almost every nation relying on the giant as a major trading partner and a leading supplier of essential goods.
Not long ago, anything made in China was considered cheap and substandard. However, there are significant general improvements in the Chinese market, shaping how consumers perceive Chinese-made goods.
The growth of the automotive manufacturing industry has helped the Chinese population’s average income increase. With their new found strength in purchasing power, the world of manufacturing has stepped up.
Since then, there has been an enormous rise and improvement in the Chinese automotive industry, as seen with brands locally producing technologically advanced vehicles like the Nio EP9 and XPeng X7.
With these international partnerships comes cooperation in the technological field. Here, China began its rise as a technological hub, inventing innovations such as 5G networking and other unique widgets in the fields of science and computers.
There is also a matter of joint ventures here, as seen with Wuling working with General Motors (GM) and the takeover of British Morris Garages (MG) by SAIC and Swedish Volvo by Geely.
Joint ventures and takeovers mean a fair share of technology that both companies use to improve themselves. From the start, Chinese car companies began with substandard copied products but fast forward to the late 2010s and early 2020s- China stunned the world with brands such as the Hongqi luxury line- which became labeled as the Chinese Rolls Royce.
Nio and XPeng, EV companies that produce vehicles advanced enough to rival Tesla and Geely- a well-praised automotive line that took over the Swedish automaker Volvo and made excellent crossover vehicles, such as the Coolray, which became a popular top-selling vehicle in the Philippines.
It is no doubt clear that China’s auto manufacturing capabilities are starting to rise above its counterparts from the West and Japan, this is mainly due to the collaborations between them despite political tensions.
There are two prominent vehicles that serve as great examples to these feats such as the Wuling Hongguang Mini EV, which made headlines not only in China but also overseas for having the size of a typical mini-car at the price of a motorcycle.
The Wuling was a success domestically in China, where consumers were drawn to its price and fashionable looks. At the price of just $3,400 USD. This would undoubtedly attract Filipino consumers who want the vehicle for their everyday commute and convenience to charge it up like a smartphone.
The second prominent vehicle is the HongQi H9, which most people would label as a Chinese “rip-off” of Rolls-Royce.
The front fascia boasts of the H9 a massive grille paired with an aerodynamic, Audi A7-esque frame; HongQi is prominent for being a status symbol among government officials and an affordable alternative to the conventional likes of the Mercedes-Benz S-Class, BMW 7-Series, or Audi A8. Like most modern cars in China, it’s a hybrid. While it has only made its global launch in the United Arab Emirates, rumors of its arrival in the Philippines imply that executives can have a choice for their daily-driven luxury sedans.
CDM has a long way to go, but it is steadily rising. While it may not yet be at its peak when it comes to sharing the eminence of Japanese or Korean car culture, Chinese manufacturers continue to emerge and penetrate the market.
May it be through new energy vehicles and hybrids, which not only speak of the dragon economy of China, but also how stigmas are slowly being erased in the automotive industry.
It is no doubt that Japanese manufacturers such as Toyota, Honda, and Nissan have a stronghold in the market, brought about by the ease of obtaining spare parts at local part stores, if not at dealerships or service centers, along with the obvious factor of build quality and usability.
Chinese manufacturers, on the other hand, like certain manufacturers which only entered/re-entered the market in the last decade or two (e.g. Peugeot, Volkswagen) will have to compete with the established mindset of the Filipino consumers when it comes to cars. While Chinese manufacturers, as mentioned earlier, are advantageous in cost, sourcing parts and servicing aren’t as accessible since most of these manufacturers would prefer servicing vehicles at the dealership to ensure the quality and genuineness of the parts.
Japanese car manufacturers offered consumers an alternative to American and European manufacturers in price and size.
On the other hand, Chinese car manufacturers are following in the Japanese’s footsteps, but mostly in electrification. So if it’s bringing about ushering in the future of automakers, it will no doubt be China who delivers.
