China´s cars not ready for mature markets – Tom Doctoroff

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Tom Doctoroff

Tom Doctoroff

China´s auto brands have gained traction and achieved a large enough scale, but are far away from breaking into mature markets, says branding expert Tom Doctoroff to Reuters. No way Chinese cars can sell for a premium, he argues.

Reuters:

Global brands have dominated car production since China’s economic opening despite strict limitations that require foreign automakers to form 50:50 joint ventures with local partners in order to manufacture in China.

Some Chinese automakers have achieved a large enough scale with indigenous SUV brands and are seen as reliable by domestic drivers, though that’s not enough to command loyalty or premium pricing, said Tom Doctoroff, Asia-Pacific CEO for ad firm JWT.

Consequently, Doctoroff says, those brands are a long way from breaking into mature global markets like Europe or the United States, where leading Chinese SUV brands – which also include those from BAIC Motor, Chery, JAC Motors and Zotye – remain virtual unknowns.

More in Reuters.

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