Wednesday, April 16, 2014

Why China avoids 2014 New York International Auto Show?

For the next few days, New York will be the epicenter of the automobile world. But not everyone connected to cars will be present at the second major auto show of the nation. Chinese automakers have decided to skip the event, which is starting from April 18 2014. The automakers even shunned the Detroit auto show in January. 
(Geely at an Automobile Exhibition in Guangzhou. However, Geely or any other Chinese automaker won’t be a part of 2014 NY auto show.)
Every automobile company knows the importance of New York. It is the focal point for media, finance, advertising and fashion. The NY International Auto Show gives the perfect opportunity for companies to invite and influence important target market. So, why Chinese automobile companies are avoiding it?

1> There is enormous pressure to showcase a winning product because of huge media presence. Journalists and auto enthusiasts can quickly write-off a product. Chinese automakers don’t want to take this risk.

2> Even if a Chinese company intends on launching a vehicle in 2015, there are several important issues other than showcasing their car. The company will have to meet US regulatory requirements, improve the quality of the product, manage US marketing, sales and distribution division, complete deals with dealers, etc.

3> Although Chinese have invested in new vehicle technology and sell vehicle parts like seat belts, shock absorbers, etc., they are a few years away from selling a passenger car in Northern American market.

Chinese cars are not available currently. But, given the perception about “Made in China” products, are you really interested in a Chinese car?

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