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  Domestics steal show
(LIANG YU)
06/22/2001
Despite many doubts and dire predictions, Auto Shanghai 2001 was unveiled on Monday, with the focus clearly on Chinese buyers.

The absence of big-name multinational automakers like General Motors Corp, BMW AG and Volkswagen AG forced the organizers of the seven-day event into this strategy, according to some insiders.

As a result, visitors are deprived of the chance they had in previous years to savour the fancy models and concept cars of the international auto giants. Some now doubt the viability of the biennial auto show, although the organizers have vowed to develop it into a symbol of this city.

"The absence of the giant companies is certainly a letdown," said Jeson Chen, a journalist from Shenzhen-based Autonews. "In that sense, this year's Auto Shanghai can't stand comparison with its counterpart in Beijing."

The events in Beijing and Shanghai were widely seen as China's two leading auto shows before rumours spread that the city will host the first Shanghai Motor Show in December. That show is expected to draw major multinational automakers.

Family orientation

Yet the disappointment of some visitors has been matched by the keenness of others to get a closer look at various models presented by major domestic automakers and a few less eye-catching foreign companies.

The popular new Buick Sail, a compact model produced by Shanghai General Motors, and many other home-made sedans, including Xiali 2000, Geely, Land Wind and Yueda, were the highlights of the event. Korea's Hyundai Kia and India's Tata also brought a number of their latest sedans to the exhibition.

"We have to step up our efforts to cater to the fast-growing domestic market, and we believe compact cars will become the mainstay of China's auto market," said Li Zhongyong, a senior executive of Fujian-based South East Motor Co Ltd. "That's why we came here." Li's company reported sales of nearly 18,000 units in 2000, an increase of 260 per cent on 1999.

And visitors' interest was stronger than expected.

For the first time, the organizers of Auto Shanghai began to charge every visitor 20 yuan (US$2.4) for admission in order to control audience size. The event in 1999 attracted more than 300,000 visitors.

Yet, throngs of people flowed into Shanghai International Exhibition Centre, Shanghai Mart and Shanghai Everbright Convention and Exhibition Centre, the three exhibition venues, despite the major sessions of the show being scheduled on weekdays.

"Individual buyers are becoming a vital part of the domestic auto market, that's why we decided to showcase affordable cars for Chinese families," said Zhou Chuoming, managing director of Shanghai International Exhibition Co Ltd, which co-organized Auto Shanghai with HK-based Adsale Exhibition Services Ltd.

Statistics from the China Machinery Industry Federation indicate that more than 600,000 home-made sedans were sold in 2000, and individual buyers now account for half the total market, up from 10 per cent in early 1990s. In that sense, Auto Shanghai is hailed by some industry analysts as one that has shed its past glitter brought by sleek yet unaffordable vehicles showcased by global giant automakers.

With domestic automakers' clearer awareness of the huge market potential in China, the event has instead become more practical and plain so as to attract more Chinese with a strong desire for modern mobility.

Lagging service

Yet it is still not easy for Chinese people to buy a family sedan due to the existence of a stiff car consumption environment.

"The prices of most sedans are still beyond what many can afford," said Huang Dongming, a local private entrepreneur. "There is still much room for price cuts."

Huang is considering buying a domestically made sedan for between 50,000 (US$6,045) to 80,000 yuan (US$9,670).

"Even if you have bought a car, the after-sales service often won't be reliable, and various costs during your use are still very high," said Huang.

Chinese people currently have to spend a considerable amount of money to cover car-use-related expenditure, including insurance and registration fees, bridge and road tolls, parking charges and other trivial yet unavoidable bills, though top government officials have pledged to cut such fees.

Like Huang, Zhou Pinghui, a local woman in her 40s, also voiced complaints about the costs and inconveniences encountered since she bought a Santana for more than 160,000 yuan (US$19,300) two years ago.

On average, she has to spend more than 1,000 yuan (US$120) a month on the car for its maintenance and other costs; she sometimes even prefers cabs to driving her own car due to the lack of convenient parking lots, Zhou said.

Despite the complaints, Zhou still plans to buy another multi-purpose vehicle (MPV) for around 100,000 yuan (US$12,000).

"I hope that an easier environment for car use will be in the offing," Zhou said.

   
       
               
         
               
   
 

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