Business / Auto China

Race has begun for sports investment

By Cai Xiao (China Daily) Updated: 2014-10-27 10:50

The Nissan Paladin is a SUV manufactured by Zhengzhou Nissan and is sold in China only, but it has been active in the much better known Dakar Rally for several years.

"Participating in these races allows us to not only perfect our cars but also to strengthen our brand and the relationship between the company and our clients," Liu says.

He says that the company's flagship pickup trucks range in prices from 80,000 yuan to 150,000 yuan, more expensive than the industry average.

"But we will continue to participate in China Grand Rally because it helps us underline the spirit of the brand, and its quality," Liu says.

Dong Ming, vice-president of Great Wall Motor Co Ltd, says he considers the company's participation in the Grand Rally as a long-term move, because in this business, "one-off involvements never deliver a profit".

Great Wall spent 15 million yuan on building two professional sports cars for the race, and invited Christian Lavieille, a top French motorcyle road racer and rally driver to join the team.

Wang says ChinaEquity has developed a sports investment platform that other automotive, tire, oil and outdoor products companies can access for their own business and marketing opportunities.

He says that the company is also talking with domestic oil companies and global automotive manufacturers on possible sponsorship of the Grand Rally.

Xu Jun, team manager of one of the teams taking part in this year's event, the Yunnan-based East Racing Team, says there are still very few companies in China that offer marketing expertise on sports-related events.

According to a report by Qilu Securities, Chinese sports industry investment was worth 320 billion yuan last year, representing just 0.56 percent of the country's GDP, against national investment averages of 2 percent globally. The annual per capita consumption on sports in China was only $27, against a world average of $217.

The report predicts that national sports investment will rise to 612 billion yuan by 2017, growing annually by around 17 percent over the next four years.