China's Automakers Struggle to Shake Cheap Image

Ten years ago, speaking of independent automakers, most people can think of "cheap low-quality", mimicry, just meet newly rich people's demand for means of transport, besides being cheap it's really cheap. But now, with China's auto market to enhance the development and consumer demand, independent brand car prices grew internal forces, whether it is mainstream brand car color value appearance of the interior, or internal engine transmissions and other power systems technical knowledge, or comprehensive quality control, are fully aligned with international standards.

More importantly, in the comprehensive product line to international standards, while still keeping the original own brand based on the market price advantage, the same product, the price significantly lower than the joint venture brands, or the same price, its own brand of products in space , far richer than the joint venture brand configuration.

But the hard way to do "inexpensive" own-brand cars, is currently still hardly be optimistic. Inexpensive alone, can only be considered a stepping stone to get to participate in international competition in the market, to the foundation of consumer choice, but it can not build brand loyalty. Chinese rise in the world, in addition to inexpensive, and apparently the need for other labels.

Today, both Chery 艾瑞泽 series, there are still the reputation of the best mid-size car Geely Bory, or choose the International Motor Show starting long comfortable moving, Guangzhou Automobile Chi Chuan GS4, Outlook caused three who are unable to find the slightest mimicry It traces, but also access to the industry of professional recognition. Such as Outlook caused three get the "international industrial design Oscar," said the "red dot design award", after obtaining Guangzhou Automobile Chi Chuan North American debut in Detroit Auto Show "amazing" Evaluation of foreign media.

...From the sales performance in 2015, the sales of indepedent-brand cars and SUV star product, the main price of many products are in the 80,000 to 100,000 yuan or more. The past, with 80,000 to 100,000 yuan for the sector, more than in the luxury car market is dominated by a joint venture brands, is owned by the following independent brands, the two camps sphere of influence is very clear.

But after years of efforts, its own brand of the main price range has been increased to 80,000 yuan, 100,000 yuan ceiling has been broken, the Great Wall H6, Guangzhou Automobile Chi Chuan GS4 other hot autonomous SUV products, and other independent car Geely Bory also the price of 10 million yuan. Even the concept of cause such outset pricing aimed at joint venture brands brands.

On the other hand, with the intensification of competition in the market, the price of the joint venture brand products continue to edge lower, the main price range in the past was 120,000 to 150,000 yuan for the joint venture brand Chevrolet, but now also the 80,000 to 100,000 yuan range has become a main competition for market segmentation for the joint venture brand Chevrolet.

And from the final market performance, despite their own brands and joint venture brands are already in full battle in the low-end market, its own brand has not been knocked out, but continues to produce sales star. Independent brands have begun to have the strength to compete with international brands.

...But they alone affordable cheap, apparently unable to establish a good image of Chinese cars, but also unable to establish that influence consumer loyalty brand of charm. Korean cars suffered the last two years in the Chinese market showed a lack of core technology and brand appeal, alone cost advantage in the market competition is always the weaker party.

[This article] just touched the doorway of Chinese car manufacturers, whether it is research and development, quality control, marketing or brand, many aspects need to continue to increase, but everything improved, the ultimate goal is to enhance the competitiveness of the product.

EEO: 一朝成名天下知中国车的崛起与隐忧

Why Is Oil Down? China's "Open Secret" Slowdown

Wondering why oil is down? Demand is down. Saudi Arabia Says Hard for OPEC to Give Up Market Share

Global oil markets are experiencing “temporary” instability caused mainly by a slowdown in the world economy, Oil Minister Ali Al-Naimi said, according to comments published yesterday by the Saudi Press Agency. He reiterated the country’s intention to maintain output amid plunging prices.

China's slowdown is an open secret: for all the government is blamed for massaging the data, it puts out a lot of data that shows sharp slowdowns in various sectors and geographic regions. The charts below are cherry picked to show where the economy is slowing. The slowdown/recession is still concentrated in the northeast and real estate related sectors, although the drop in electricity production and autos hints at a widening slowdown.

Auto production is down.

Related: Massive Volume "Panic Selling" Cuts Warren Buffett's Chinese Car Maker BYD In Half Overnight

The reason - perhaps unsurprising - given by some is worries over Mainland China IPOs "caused a liquidity squeeze," as the recent rally in mainland shares is led by leverage financing leading to major margin-calls on modest drops. Is it any wonder the PBOC is trying to tamp down the speculation.

I don't think so, since earlier this month a CASS researcher explained how smart money is buying when there are liquidity freezes. Also, BYD trades in HK, not only the Mainland, but the drop was larger in the market without a liquidity freeze......ZeroHedge links to a story with the real reason (reason not in headline): China Stocks Fall From 4-Year High on IPO Concern as BYD Slumps

BYD, the automaker partially owned by Warren Buffett’s Berkshire Hathaway Inc., slumped as much as 47 percent in Hong Kong and plunged by the daily limit in Shenzhen.

......The shares slid 10 percent in Shenzhen. Investors are speculating on BYD’s outlook after Geely Automobile Holdings forecast a plunge in profits on the slumping ruble, said Mari Oshidari, a Hong Kong-based strategist at Okasan Securities Group Inc.

The contagion begins? BYD addressed 6 rumors today: 比亚迪紧急会议澄清六大传言：王传福没“出事”

1. Russia is not the presence of large amounts of foreign exchange losses, BYD sales to Russia a year only a few hundred thousand dollars ; 2. electric cars are all running correctly; 3. battery factory normal operation; 4. for the reduction of major investors rumors, investors and members through communication, nor understand; 5. the possibility of Buffett's holdings of small, recently did a communication; 6. Wang no "trouble", he still presided over the shareholders' meeting yesterday, today also met with the staff.

Electricity production:

Cement production:

Industrial production in China's industrial heartland. Hebei technically isn't in the northeast, but has many steel mills. Beijing and national rate in for comparison.

Real estate investment in Liaoning province, Heilongjiang and Jilin.