Survival of the Fittest? —Chinese Automobiles

            In the recent years, the Chinese automobile industry has popped up with a certain number of brands. Some for instance, include: Rich, Cherry, BYD, Chang’an, Wuling, etc. What is the future of the Chinese automobile makers? The three most familiar brands, and most likely to survive brands are: Cherry, BYD (Build Your Dreams), and Wuling. Why do I predict that in the long run, these three brands will be the pack leaders among their peers? I do so for a number of good reasons.

Let’s start with Cherry. Cherry has already been exporting their most economical, the Cherry QQ to a number of countries, such as: Singapore, Iran, the Philippines, South Africa, Thailand, and Vietnam, along with Sri Lanka. Surprisingly, the available engines for the QQ are both Euro III compliant, although suffer dramatically in the safety field. The QQ is the cheapest car in Singapore, South Africa, Vietnam, and Sri Lanka, along with the Philippines. In the Philippines, the QQ has already become Coca-Cola’s company car, replacing the previous Hyundai Getz. Due to a need of Cherry’s, this Chinese car company is most likely to survive in the long run.

BYD. They make sedans, cars, station wagons, and electric vehicles. Although BYD cars are not exported to as many countries as Cherry, their electric vehicle seems to be catching a certain investor’s eyes—Warren Buffet. He purchased $232 million stake in China’s BYD Co. The Chinese company has risen from the shadows, and is the world’s largest producer of rechargeable batteries for cellular handsets, such as Nokia Corporation. With an expanding line of green automotive technologies, including lithium-ion batteries, a line of hybrid, all-electric vehicles, and now Buffet as a major shareholder, this is why I believe that BYD is also another company most likely to survive.

Wuling. Originally an independent company, it is now a joint venture between General Motors, Shanghai Automotive Industry Corporation, and Wuling Automobile Company Limited. Wuling specializes in small vans, targeted at the farming industry. The van is popular amongst farmers and small businesses in China, as the van incorporates 800cc engines, which provides fuel efficiency, multiple seats, and American supervision. With increasing record sales of more than 1 million vehicles in the past few years, Wuling is also one of the most probable companies to carry on strong.

Even with Chinese car automakers beginning to emerge from the shadows, nevertheless with time, only the fittest amongst themselves shall survive…