Feb 20, 2009
Local vehicle importer overcomes Chinese brand perceptionsBack
© Reuse this
When GWM SA was launched in March 2007, the company initially projected that it would sell between 3 000 and 4 000 units in South Africa in its first years of operation. To date, the company has sold in excess of 12 000 units in South Africa. While the company has been affected by the recent economic slowdown and experienced a drop in sales, sales still remain above what the company had initially projected from an annual perspective.
GWM SA MD Henri Meistre says: “The biggest hurdle that the company is striving to overcome is other Chinese brands.” Quality issues, poor service and parts backup have created a negative peception of Chinese-manufactured vehicles. Con- sumers are more willing in good times to take a chance with a lesser known, affordable brand; however, when things get tight, consumers become risk averse and rather buy a second-hand known brand than an unknown, new Chinese model, whose ser- vice and reliability are unknown. “Until all Chinese brands show their long-term commitment and attain a reputation for reliability, vehicles from China may be tarred with the same brush,” Meistre adds.
Existing gaps in technology between Chinese vehicles and leading brands mean that the need for improved quality is more important than sales at present. It is estimated that about 10 000 Chinese-made vehicles were sold in South Africa in 2007, and if improvements in quality and service begin to take place across the board, more and more Chinese vehicles will be able to compete with well known brands.
Great Wall Motors (GWM) is the first Chinese national automotive brand to pass the European Union (EU) E1 mark. This certificate demonstrates GWM’s conformity to production standards, as well as a quality management level on par with EU requirements.
Better than expected projected sales have resulted in South Africa becoming GWM’s second-biggest export market after Russia. In view of this achievement, GWM SA intends to add to its local product portfolio and venture into a completely new market segment with the release of its first passenger vehicle, the Florid, during the second half of this year. The Florid is one of a range of four passenger-type vehicles, which GWM SA intends to introduce into the South African market.
Edited by: Laura Tyrer© Reuse this
To subscribe email email@example.com or click here
To advertise email firstname.lastname@example.org or click here
Other Automotive Industry News
Paperboard and corrugated pallet manufacturer Kimmo, which previously traded as CX Pallets, manufactures honeycomb paperboard, an extremely thick and sturdy material for use in protective transport packaging. Having invested in state-of-the-art honeycomb paperboard...
With the launch of a new child seat concept, Swedish vehicle manufacturer Volvo Cars’ design team has completely reimagined how children can travel safely in the future.
Updated 3 hours ago The Competition Tribunal on Friday gave a conditional go-ahead for mobile operators Cell C, MTN and Vodacom to buy out their respective subscriber bases, as South Africa’s last independent service provider Altech Autopage calls it a day. The Allied Electronics...
Updated 4 hours ago The drought in Southern Africa could become one of the worst on record should the current below-normal rainfall continue, the United Nations (UN) World Food Programme said this week. The El Niño conditions presently being experienced in the region had resulted in a...
Updated 4 hours ago Kelibone Masiyane has been appointed the new MD of PPC Zimbabwe, succeeding Njombo Lekula, who had recently been redeployed as MD of PPC’s international operations. Masiyane would be supported by new PPC commercial director Iain Sheasby and new PPC GM of finance...
Recent Research Reports
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
This Week's Magazine
Lifting, transporting, installing and ballasting solutions provider Ale has expanded its global fleet of trailers and invested in the latest range of widening trailers that can be mechanically widened from 3 m to the desired width for any project. Ale ordered 48 axle...
The market for the BMW 7 Series in South Africa differs quite significantly from the rest of the world. China, the US and the Middle East almost exclusively buy the long-wheel-base version, using the German manufacturer’s luxury high-end sedan as a chaffeur-driven...
January new-vehicle sales fell by 6.9%, to 48 615 units, compared with the same month last year. Statistics released by the Department of Trade and Industry show that the domestic new passenger-car market declined by 6.1%, to 34 936 units, compared with 12 months ago.
Information technology (IT) equipment and infrastructure multinational Dell is providing open infrastructure systems for clients so that they can use any systems, including innovative new systems, that suit their business needs, says Dell Europe, Middle East and...
South Africa’s State-owned defence industrial group, Denel, has set up another international partnership, based in Hong Kong. This new subsidiary is Denel Asia and it is a joint venture (JV) with South African private sector company VR Laser.