Chinese products have virtually flooded a number of markets
around the globe, including the USA. There may be a number of complaints regarding the quality and safety of Chinese products, but the fact remains that they are abundant on store-shelves. The natural question now is, how long will it take before Chinese automakers head towards the largest automobile market in the world?

The problems facing the Chinese automakers before they go Stateside are obvious. Emission and safety standards in terms of automobiles are very strict, that the consumers see Chinese products as inferior to those already in the market doesn’t help matters either. Another problem facing the Chinese is that some of their products are considered to be copies of established models in the US and European market. Majors like BMW, Daimler and GM have sued some Chinese automakers over ‘cloned’ or look-alike models leading to scenes like debuts in parking lots. This of course, doesn’t paint a favorable picture in the minds of customers, given that automobile sales are (like many other products) swayed by the goodwill and reputation of the manufacturer.

These hurdles, however are not insurmountable. All big players of the automobile world want to do business in China, which is an emerging market with fast growth. This inevitably leads to tie-ups with Chinese automakers as it is required by the law there. Working together with the bigwigs of the industry naturally gives the Chinese an experience of the ‘outer world’ in terms of quality, business and technology. And Chinese products are cheap. Period.

With oil costs shooting through the ceiling and burning a hole in the consumers pocket, North American consumers are now redefining their tastes. Small cars and diesel engines which were once looked down upon are now acceptable. This is where Chinese step in. Smaller and comparatively more fuel-efficient Chinese models could lead the charge same way the Japanese did. Japanese and Korean automakers have a large market share in the USA, the Chinese could well think of a strategy to enter the market. With the backing of the global economic setup, it is imperative that budding manufacturers go to the largest markets, the only question is, how soon?

Chinese automakers are present at the ongoing Detroit Auto Show, and they have some very interesting vehicles and technology to show. Chinese automakers say the push into America is still some years away, this time will be used to create a dealer network and improving product quality. This process might take nearly five years, but the Chinese have already started selling cars in Europe, giving them deeper insights into the ‘developed markets’. Expect cars wearing Chery and Geely badges on the streets of USA
soon.

[Via: BusinessWeek]