China Carmakers Go Upscale in Shanghai

SEE ALSO: 2007 Shanghai Auto Show

Shanghai April 23, 2007; The AIADA newsletter reported that at the Shanghai Auto Show, which opened yesterday, much of the focus is on an unprecedented lineup of higher-end Chinese-branded autos.

Business Week reports that China's most successful domestic brand, Chery, showed 40 models, including the A6 Coupe, the Shooting Sport recreational roadster, and the Tiggo6 SUV.

Until now, Chinese carmakers have found their niche either by helping the big brands from abroad make their cars, or producing ultra-low-cost cars. Now that's changing, particularly as Chinese makers face new competition from the likes of GM's $6,500 Spark, Volkswagen's Golf, and Hyundai's Elantra, all vying for the low end of the China market.

"Foreign automakers are starting to produce low-price cars, which is a very dangerous signal for the Chinese auto industry, and is driving the move towards higher end," says Beijing-based auto analyst Jia Xinguang. So "Chinese automakers are experiencing an upward trend on pricing.

Tang Dongcheng, vice-president of Dongfeng Motor, said, "In the Chinese auto industry we have been in infancy but now are moving toward a more mature stage. In the future, China will move forward to the high end.