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SHANGHAI -- Who can stop the Japanese from gaining more ground in China's auto market? Nobody.
Japanese companies go the extra mile to understand Chinese consumers' needs. But above all, they win the hearts of Chinese consumers with high product quality.
Take the Camry. While exporting the car before 2006, the Japanese automaker collected feedback from Chinese customers about it. Toyota wanted to accommodate Chinese car buyers' tastes when it began producing the car in China.
Moreover, in redesigning the Camry, Toyota targeted China as a key market. And the automaker gave its r&d team in China the final say on what suits the Chinese market.
True, affinity between Chinese and Japanese culture helps Toyota. Chinese consumers have a natural liking for the finely made interiors and graceful styling of Japanese cars. They also like Japanese cars for their fuel efficiency.
But in the final analysis, what Chinese buyers like about Japanese brands is their quality. As in the United States and elsewhere, the Japanese are using their manufacturing skill to win in China.
In J.D. Power's 2008 China Initial Quality Study, Japanese vehicle models occupy the top position in five of six new-vehicle segments.
Mei Songlin, general manager of research at J.D. Power Asia Pacific China operations, says first-time buyers account for 80 percent of car owners in China. Also, according to his company's survey, when Chinese consumers buy their first cars, 69 percent of them rely on recommendations from car-driving friends.
"Their friends know cars and their comments on the quality of certain cars can influence other people's choices," he says.
Therefore, even if an automaker with high-quality products sells fewer cars during economic recessions, it can still outsell its competitors.
"That's why good quality can help an automaker to gain market share even in bad times," he concludes.
Japanese brands command a collective 30 percent share of China's car market, up from 28.7 percent at the end of 2007, according to J.D. Power figures. As a leader of the Japanese brands, Toyota's sales surged 31 percent year-on-year in the first 10 months of this year, far exceeding the market average of 10 percent.
Supported by strong brands and high quality, Japanese automakers will come out of the current market downturn as clear winners in China.
Pictured: Yang Jian is the managing editor of Automotive News China. |
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