Rebuild the made in China image so as to

　　After momentary glory, Chinese auto enterprises suffered heavy losses in Russian car market in 2009, and are even faced with danger of exiting from Russian car market. Once low price was powerful, however, now it couldn’t respond to changes of overseas market effectively. Currently, faced with brutal overseas competition, Chinese auto enterprises should focus on product quality while pursing higher share in global market. Heavy losses in Russia for Chinese auto enterprises indicate that quality is the life and service is the competitiveness for auto enterprises.

　　As early as five years ago, Zhu Jingcheng, chairman of SAEC once stated that thresholds for China's auto exports to Russia are problems of vehicle quality certification, unsatisfactory vehicle quality, transportation difficulty, short warranty period, ignoring construction of service network, overseas vicious competition of Chinese cars, and the possible anti-dumping. Today, most of those problems still exist.

　　It is said that from 2010 Russia has begun implementing Europe Ⅳ emission standards for imported cars. For Chinese auto enterprises, this is even a greater challenge. Evsikov, senior adviser at Russian Embassy said that with the Russian economic recovery and development, people’s requirements for cars are increasingly higher. Russian consumers pay more attention to the quality of cars, brands and after-sale services, and prices are relegated to the second. However, Chinese cars haven’t built brand basically in Russia and reputation is poor.

　　He also said that if Chinese cars want to achieve success in Russian market, they must abandon the habits of winning through prices. Furthermore, Chinese auto enterprises should come up with long-term development strategies according to features of Russian market and abandon short-sighted profit-making behavior. Consequently, it is imperative for Chinese auto enterprises to build modern after-sale services system.

　　Although the financial crisis has s severe impact on Russia's economy, its car market capacity still has a great growth potential. According to Russian domestic forecast, car sales of Russia would reach 3.5 million units by 2014. Evsikov said that as long as Chinese auto enterprises seize the opportunity as well as adjust the strategy in the setback, they can own great market share of Russian market.

　　Industry people pointed out impacted by the financial crisis, now many Russian enterprises are in trouble and even faced with bankruptcy. This also provides Russia’s auto industry and China’s auto industry with opportunity to cooperate. Chinese auto enterprises can enter Russian market again by means of purchasing local enterprises and to avoid all kinds of trade barriers. Besides, Chinese auto enterprises should boost their investment into Russia according to the principle of mutual benefit. At the same time, Chinese auto enterprises also need to learn from failure and rebuild made in China image in order to accelerate transferring from quantity expansion to high quality brand. As a result, it can enhance overall level of China's auto industry and help export so that account for a large share in reconstructed overseas markets. (Translator: Qinghua Wade)

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　　http://auto.sohu.com/20100514/n272112492.shtml