Own brand of Joint ventures is coming

　　The 8th China (Guangzhou) International Automobile Exhibition created a new record because of 160,000 square meters of exhibition area, 890 show cars, 5 world premiere models, 45 China premiere models and 30 concept cars. As the largest auto show at the end of 2010, The 8th China (Guangzhou) International Automobile Exhibition can be defined as the final curtain call of Chinese car market in 2010 and the benchmark for Chinese car market next year.

　　A variety of products unveiled

　　Own brands created by joint ventures will attend the show, which becomes a focus. Guangzhou Honda has released the first mass production EVERUS S1, and Dongfeng Nissan also showed the first concept car of Venucia. In addition, Shanghai-GM-Wuling unveiled the first middle-class car Baojun 630 a month ago. In fact, own brands’ of joint ventures have developed into the product level.

　　FAW-Volkswagen, Changan Ford, Beijing Hyundai as well as Guangzhou Toyota are also eager to create own brands, and it seems that own brands have become the new focus of joint ventures. With the joint development of joint ventures, own brands created by them can take off with good quality and reasonable prices.

　　Advantages of the joint ventures to develop own brands are relying on the better resources advantages of the shareholders, joint ventures are capable of grasping core technologies to achieve the capability of sustainable development of new cars through technology introduction, digestion, absorption, re-innovation and further independent research and development.

　　Thus, the biggest challenge for joint ventures to develop own brands doesn’t lie in technology or quality, but is the shaping of a new brand. “The brand is superior to product, so Baojun should have its own brand DNA,” said Shen Yang, general manager of Shanghai GM Wuling. Take Baojun for example, it is positioned as an own brand which integrates experience as well as technology of joint ventures, local production cost advantage and strong dealer network resources. What’s more, Baojun is an approachable own brand providing Chinese consumers with the international standards of quality and reliability.

　　More will be listed next year

　　Analysts said with the help of joint ventures’ advantages in products and channels own brands created by joint ventures have the ability to be competitive. Speaking of Baojun, reporters learned from Shanghai-GM-Wuling it took three years to achieve production from planning, which receives the shareholder's long-term and comprehensive support. R&D, production, support and service system are in accordance with GM's global manufacturing system and standards.

　　It should be noted that own brands created by joint ventures not only have high quality of joint ventures, but also have high value like the traditional own brands. “Because of reasonable prices and high quality, own brands created by joint ventures are supposed to fully meet the demands of consumers who have insufficient income but want to enjoy quality of cars made by joint ventures,” said well-known automotive expert Jia Xinguang.

　　Yang Jie, general manager of SAIC-GM-Wuling Sales Company revealed that as the first model created by a joint venture to be listed, Baojun 630 targets the largest market but its prices will not exceed 100,000 Yuan. People at Dongfeng Nissan also disclosed prices of the first model of Venucia should be less than 100,000 Yuan. “Lower prices don’t mean low quality, and we want to give consumers something very affordable,” said Guangzhou Honda executive vice president Yao Yiming.

　　The reporters also learned that in order to ensure the listing progress of Baojun 630, SAIC-GM-Wuling is actively preparing for relevant issues. Baojun 630 is projected to be listed in the first half of 2011. Similarly, Guangzhou Honda EVERUS S1 will also be listed in the first half of 2011.

　　It is possible that with the rise of own brands created by joint ventures, competition in Chinese car market in 2011 will become more intense. With strong advantages, they will put pressure on the traditional own brands, but also will bring a positive challenge. Consumers can have a lot of choices with more and more own brands created by joint ventures to be listed next year. (Translator: Qinghua/Wade)

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