Will China be the next option for automakers or will Chinese brand be the next option for customers

Since 2008, the world has seen its fair share of catastrophes, natural or man-made. There have been a number of Tsunamis, earthquakes and cyclones in the world and Katrinas in the stock exchange. However, the current European crisis brings one of the difficult situations that is aggravating every other day.

The European Union and European Central Bank has turned every corner but everything has gone to vain. The purchasing power of public is in a free fall since last October and this epidemic is spreading all over Europe.

Among other things, one issue has been catching roots in the media and that is the automotive market. In the last five years, Europe has seen a drastic change in the purchasing power of the masses in terms of cars. In 2011, 11.5 million new cars were registered in the whole continent.

However, there is one competitor who is going places despite any recession or depression, China. The country solely produced 11.4 million cars in 2011 and they are cheap.

Although China is famous for copying intellectual rights, and is quite good at it, majority of the cars produced last calendar year were not copies but altogether new ones. This begs the question. The public cannot live without cars but Mercedes-Benzs and Audis will no longer be in there reach. So, will China be there next option.

Despite being one of the biggest communist countries in the world, China is growing in car production and sales and opposed to Russia or former Soviet Union, produces good cars. Although they might not be the public’s first choice at first but as the economy is growing—in a downward direction—it is going to be the only choice left.

The Europe is trying to reduce the costs of their cars and one of the best option to them is to shift their production lines to China, in which way the Audis and Bentley might remain the same but affordable to the on-going economic trend.

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Posted by Usman Khalid on Feb 9 2012. Filed under Automobiles. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.