Experts explain why there are so many car brands in China.

About 100 different brands of cars are sold in China. There are reasons why China is building so many separate lines. Why China is doing this is described in a recent article on avtosota.com.

Until recently, only a few brands from China were known in Ukraine, but now new brands and sub-brands have flooded the market. There are even more brands in China. Companies are launching automotive startups and partnering with IT giants to bring new product lines to market.

For example, several new sub-brands were launched at the Shanghai Auto Show: for example, new sub-brands such as JMC's DaDao, BYD's Yangwang and FAW's Pony were introduced at the show. These new vehicles could appear within existing well-known automakers. However, Chery, Changan, BYD and FAW launched new products under new brands.

Revaluation.

The Chinese automobile industry is trying to change its former image. Even 20 years ago, Great Wall, Chery and Geely were not recognized in the world as automakers worthy of replacing Western ones. Now they create real competitors to Western models.

Recently, the Chinese auto industry has taken a giant leap forward: the Chinese are investing in modern production facilities, hiring Western engineers and designers, and producing better and more stylish cars. To attract attention, China produces models under different names and new brands, so that the previous reputation does not influence and does not interfere with the impartial evaluation of new products.

China is entering a different segment than before and producing more expensive models than before. If earlier China produced mainly budget models, now it produces more cars of the middle and even premium class.

This is not a new strategy for the global market. Japanese manufacturers were already doing this when the American public considered Toyota worthless. Then Japan launched premium brands Acura, Lexus and Infiniti specifically for sophisticated American motorists.

Korean manufacturers did the same when they separated the Genesis brand from Hyundai.

Now China follows the same pattern: Exceed instead of Chery, Hongqi instead of FAW, Avatar instead of Changan, Zirkle instead of Geely. The list goes on and on.

Zeekr 007.

Zeekr 007.

Work with target groups

All over the world, it is customary to divide cars into price segments: budget, mass and premium. However, China has decided to divide its customers into smaller segments and now divides them according to interests.

Chery launched the Jaecoo for adventurers and long-distance travelers.

Omoda is for young drivers who want to stand out from the crowd

Jetour - for an even narrower segment of youth

Great Wall has developed the Ora electric car for young women who prefer the style of a Mini or Wagen Beetle.

For aggressive young people, the same GW company built the Tank.

Chinese automakers have divided their target audience into very narrow groups, each of which now offers the car they want. New car brands were created for each of these segments.

Support from local authorities

Chinese automakers can count on government support, including local authorities. China is divided into provinces, and the government of each of them encourages manufacturers in its own way. Local authorities seem to be competing with each other to produce more, better and faster new cars. Producers receive "bonuses" and subsidies, and local governments receive jobs, investments and revenues.

It is possible to produce cars of another brand in a neighboring province, while the main factory is in the same province, thus receiving double support.

Close cooperation with competitors.

Western manufacturers cannot independently open factories in China. In order to sell and produce their own models in China, they need to cooperate with local companies and create joint ventures. For example, Volkswagen has a partnership with China's FAW, Audi with SAIC Motor, BMW with Brilliance and Mercedes-Benz with Beijing. Some factories use a simplified process of simply replacing logos, others produce cars redesigned specifically for the Chinese market, and still others produce new models developed in collaboration with Western brands. For example, the Chinese SUV manufacturer Jianling Motors launched the JMC brand, which produces copies of the Japanese Isuzu D-Max pickup truck and the MU-X SUV. The brand also produces replicas of the Ford Transit commercial van and the Ford Ranger pickup. The Ford F-150 pickup truck is produced under another sub-brand - DaDao.

Under such conditions, both brands are in a winning position.

Management perspective

New brands are often headed by managers who have held senior positions in Western brands. For example, Hung Ki is designed by Giles Taylor, a Briton who worked for Rolls-Royce and Jaguar. Geely and Link cars are designed by Volvo's Peter Horbery and Stefan Giraf, the creator of exteriors for Bentley, Audi and Volkswagen. Kevin Rice, the designer of the Mazda MX-5 and RX-8, now works at Cheruizi, and the exterior of the JAC S7 crossover was designed by Daniele Galione, who previously worked at Alfa Romeo.

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