Shaik K.’s Post

Chinese cars are rapidly replacing Japanese brands in key markets. Here's how once-dominant Honda and Nissan are losing share at a worrying rate.

NEW: Chinese cars are rapidly replacing Japanese brands in key markets. Here's how once-dominant Honda and Nissan are losing share at a worrying rate. ⤵️

It is not just cars that Japanese brands are selling less in the mentioned markets, this change is being witnessed in other segments as well, such as buses. Let us take Malaysia for example. Until the mid-2010s, Japanese brands like Hino used to dominate the roads there. The scene has changed since then due to the increasing presence of European and Chinese brands, such as Scania and Yutong, and local bodybuilders like tmsbus now build their own chassis. These manufacturers have been able to corner the Japanese, based on three aspects: 1. Product flexibility: Double-decker products are offered alongside standard models. This gave added capacity on denser routes whilst promoting fleet commonality. 2. Comfort and safety features: Advanced driver assistance systems and automatic/ automated manual transmissions are offered. They provide more relaxing and safer operations for the driver. 3. Greener options: They offer products with lower emission standards (Euro 5 and running on HVO fuel) and alternative drives such as battery power. This is despite that there is no such requirement in Malaysia. In contrast, Japanese brands are only compliant to the Euro 2/3 standard. As a result, operators would rather opt for local or Chinese offerings at a lower cost or pay more for European coaches that bring greater fuel savings and increased profitability. They also attract more drivers and maintenance costs can be on par due to a modular part system. While reliability is paramount, innovation is a need that can be paired with the former aspect if done with simplicity in mind. It makes for a win-win situation for all stakeholders involved. Never rest on your laurels, change is the only constant. In the meantime, it will be interesting to see how Japanese brands will adapt to this new normal.

❓ 𝐈𝐬 𝐓𝐡𝐢𝐬 𝐭𝐡𝐞 𝐄𝐧𝐝 𝐨𝐟 𝐭𝐡𝐞 𝐑𝐨𝐚𝐝 𝐟𝐨𝐫 𝐉𝐚𝐩𝐚𝐧𝐞𝐬𝐞 𝐂𝐚𝐫𝐬 𝐢𝐧 𝐂𝐡𝐢𝐧𝐚? The Chinese #automotive market has undergone a dramatic transformation over the past few decades. Japanese cars were once widely favored in the Chinese market due to their high quality, reliability, and advanced technology, are no longer as sought-after as they once were. Why have #Japanese cars lost their appeal in the Chinese market? ▶ 𝐈𝐧𝐭𝐞𝐧𝐬𝐢𝐟𝐲𝐢𝐧𝐠 𝐂𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐨𝐧 Domestic and foreign car competitors offer unique designs, technologies, and brand images, putting significant pressure on Japanese cars. In comparison, Japanese car product lines are relatively conservative, lacking innovative designs and technological breakthroughs. Additionally, some domestic joint venture brands e.g. (𝘎𝘶𝘢𝘯𝘨𝘲𝘪 𝘏𝘰𝘯𝘥𝘢, 𝘋𝘰𝘯𝘨𝘧𝘦𝘯𝘨 𝘕𝘪𝘴𝘴𝘢𝘯) have launched  Japanese-like cars, cannibalizing into sales. Dongfeng Nissan for example sold 15 million vehicles in 2022, affecting the Nissan's own car sales in #China ▶ 𝐁𝐫𝐚𝐧𝐝 𝐈𝐦𝐚𝐠𝐞 𝐈𝐬𝐬𝐮𝐞𝐬 Japanese cars have long focused on the mid-to-low end of the Chinese market, leading to a certain degree of decline in their brand image. Japanese cars have had issues with after-sales service and maintenance, weakening consumer trust. ▶ 𝐂𝐮𝐥𝐭𝐮𝐫𝐚𝐥 𝐃𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐜𝐞𝐬 Chinese consumers have different needs and preferences for cars compared to Japanese consumers. For example, Chinese consumers place more emphasis on factors such as spaciousness, power, luxurious configurations, and seat comfort, while Japanese cars do not have significant advantages in these areas. With the rise of China's middle class and the emergence of younger generations of consumers, their perceptions of and choices for car brands have changed. These new consumer groups place more emphasis on personalized, fashionable, and environmentally friendly automotive products, and Japanese cars are relatively weak in these areas. The 4 million Japanese cars sold in 2016 seems to be a distant memory. Imho, Japanese car manufacturers need to re-examine their product positioning and brand image, and better meet the needs and expectations of Chinese consumers if they hope to regain their former glory in the Chinese market. Join the conversation on how to rebrand Japanese cars for the Chinese market. _______________ 💡 𝘊𝘳𝘢𝘤𝘬 𝘵𝘩𝘦 𝘤𝘰𝘥𝘦 𝘰𝘯 𝘊𝘩𝘪𝘯𝘢, 𝘴𝘢𝘭𝘦𝘴, 𝘮𝘰𝘵𝘪𝘷𝘢𝘵𝘪𝘰𝘯, 𝘦𝘯𝘵𝘳𝘦𝘱𝘳𝘦𝘯𝘦𝘶𝘳𝘴𝘩𝘪𝘱, 𝘢𝘯𝘥 𝘵𝘦𝘤𝘩𝘯𝘰𝘭𝘰𝘨𝘺 𝘵𝘰 𝘶𝘯𝘭𝘰𝘤𝘬 𝘺𝘰𝘶𝘳 𝘩𝘪𝘥𝘥𝘦𝘯 𝘱𝘰𝘵𝘦𝘯𝘵𝘪𝘢𝘭. 𝘍𝘰𝘭𝘭𝘰𝘸 𝘮𝘦 at #flyingreddot

This is the classic textbook scenario of "Who moved my cheese?". You think Chinese automotive companies ate your lunch in China? BYD accounts for 1 in 8 cars sold in Singapore as recently as July, marking pace with Benz and Toyota. With COE hitting SGD 92k and the cheapest BYD car pricing itself at SGD 160k, this is not just a issue of undercutting prices. It's about providing value. Chinese automakers will eat your lunches globally. https://lnkd.in/g-C4FzCT

𝕰𝖓𝖒𝖔𝖗𝖊 𝕯𝖆𝖎𝖑𝖞 24/12/2024 🔥 🎄 🎄 🎄 Merry Christmas! 🎄 🎄 🎄 Here's the News of China for the day: 𝗟𝗲𝘅𝘂𝘀 & 𝗦𝗵𝗮𝗻𝗴𝗵𝗮𝗶! 𝗧𝗼𝘆𝗼𝘁𝗮 𝗽𝗹𝗮𝗻𝘀 𝘁𝗼 𝗯𝘂𝗶𝗹𝗱 𝗮 𝗻𝗲𝘄 𝗳𝗮𝗰𝘁𝗼𝗿𝘆 𝗶𝗻 𝗦𝗵𝗮𝗻𝗴𝗵𝗮𝗶 𝘁𝗼 𝗽𝗿𝗼𝗱𝘂𝗰𝗲 𝗟𝗲𝘅𝘂𝘀 𝗲𝗹𝗲𝗰𝘁𝗿𝗶𝗰 𝘃𝗲𝗵𝗶𝗰𝗹𝗲𝘀 According to several people familiar with the matter, Toyota has identified a site in Shanghai for the plant, which is expected to be operational around 2027 and will produce Lexus vehicles for the Chinese market. In 2023, Lexus sales in China reached about 180,000 vehicles. At present, Toyota's production in China is handled by joint ventures, forming FAW Toyota and GAC Toyota in cooperation with FAW and GAC respectively. In 2023, Toyota produced 1.75 million cars in China. However, Lexus models are mainly produced in Japan and exported to the Chinese market. By building the new plant, Toyota is expected to become the first Japanese automaker to build a separate factory in China. Can Toyota gain a foothold in the highly competitive Chinese auto market and generate stable profits? Let's wait and see. 👍 😃 𝘼𝙡𝙡 𝙩𝙝𝙚 𝙘𝙤𝙣𝙩𝙚𝙣𝙩 𝙤𝙛 𝙩𝙝𝙞𝙨 𝙖𝙧𝙩𝙞𝙘𝙡𝙚 𝙞𝙨 𝙨𝙤𝙪𝙧𝙘𝙚𝙙 𝙛𝙧𝙤𝙢 𝙩𝙝𝙚 𝙄𝙣𝙩𝙚𝙧𝙣𝙚𝙩. 𝙄𝙣 𝙘𝙖𝙨𝙚 𝙤𝙛 𝙖𝙣𝙮 𝙞𝙣𝙛𝙧𝙞𝙣𝙜𝙚𝙢𝙚𝙣𝙩, 𝙥𝙡𝙚𝙖𝙨𝙚 𝙘𝙤𝙣𝙩𝙖𝙘𝙩 𝙪𝙨 𝙞𝙢𝙢𝙚𝙙𝙞𝙖𝙩𝙚𝙡𝙮 𝙛𝙤𝙧 𝙙𝙚𝙡𝙚𝙩𝙞𝙤𝙣. 😃

This is yet another thought-provoking, insightful view of the EV sector from Michael Dunne How are Chinese automakers disrupting the global car market? China is rapidly expanding its influence in the automotive sector, particularly electric vehicles (EVs). With competitive pricing, advanced technology, and government support, Chinese car brands increasingly challenge established Western and Japanese automakers. This aggressive expansion sometimes called a “blitzkrieg,” is reshaping the global landscape as Chinese companies target markets across Europe, Southeast Asia, and beyond. The success of this strategy hinges on how well these companies balance innovation, branding, and adapting to local market demands.

Well done to Stephen and team for this article - it must be the most comprehensive article/guide for all things Chinese Cars related. It will be interesting to see how this plays out in the future, but it is clear that the Chinese car manufacturers are producing some good looking cars, which are fully spec'd, that drive well and are at a great price point. At a time when most consumers are watching their spend but still expect to be delighted, the timing could not have been better. Demand for Chinese cars is up some 400% YoY on DubiCars, so dealers need to focus on what consumers want today v's what they purchased yesterday. If anyone would like more data or insights on this, then please dont hesitate to reach out. Laurent Najem Jessica Haddad Diaa ElSeuofy Tatieli Souza Issam Kambriss #chinesecars #china #uaecars https://lnkd.in/d6rw3xKt

Great article put together by our team. If you are amongst those who are curious to know more about the Chinese cars, this article will definitely help you to understand a lot more about the manufacturers, models and the market. #dubicars #automotive #chinesecars

Chinese Carmakers Rev Up in Thailand as Japanese Giants Downshift With Japan-based Suzuki Motor Corporation planning to close a subsidiary plant in 2025 and Subaru ceasing local production by the year's end, the Thai automotive market is experiencing a seismic shift. This change is fueled by the rise of Chinese car manufacturers, who are capitalizing on the declining sales of some Japanese brands and attracting younger buyers with affordable and tech-savvy electric vehicles. While Japanese carmakers still hold the majority market share in Thailand, Chinese brands are steadily gaining ground. This is due in part to competitive pricing strategies, with companies like BYD slashing prices by as much as 20% on new models. This aggressive approach, coupled with the appeal of feature-rich, budget-friendly EVs, is putting pressure on established Japanese brands. While Chinese automakers are gaining traction, the market itself is experiencing a downturn. Total vehicle sales have been declining for 11 consecutive years, and even with government subsidies, EV sales have plummeted in recent months. This suggests that while Chinese car manufacturers are making inroads, they are doing so in a challenging and evolving market. #automotiveindustry #EV #China #Thailand #businesstransformation #competition #marketshare #supplychain #manufacturing #innovation