Craze cools as auto show ends
By Gong Zhengzheng (China Daily)
Updated: 2004-06-17 10:38

Organizers of the week-long motor show are expected to earn some 200 million yuan (US$24.1 million) from fees charged to auto manufacturers and ticket sales, according to sources at tax departments in Beijing.

Business taxes paid by the show organizers will exceed 10 million yuan (US$1.2 million).

"The motor show has been successful and we are satisfied with the effect. Foreign and domestic producers came and the visitors are so crazy," said Zhao Haiming, general manager of China National Automotive International Corp, one of organizers.

"But our earnings have been greatly overestimated."

Crowds of people flock into the exhibition hall of the Beijing International Auto Show which ended yesterday. [newsphoto]

More than 5,000 domestic and foreign journalists reported from the motor show.

Each model at the scene helping to promote the car could earn 2,000 yuan (US$240) to 10,000 yuan (US$1,200) a day.

Nearly 1,900 vehicle and components manufacturers from more than 20 countries and regions successfully flaunted their products, including 540 automobiles, to would-be Chinese car buyers.

Kenneth Hsu, vice-president of Ford Motor China, said: "The motor show costs us a lot of money, but is well worth it. We have basically achieved the aim of publicizing our products through the media to the public in China and around the world."

Ford, the biggest exhibitor at the motor show, and its affiliated brands - Volvo, Lincoln, Land Rover, Aston Martin, Jaguar and Mazda -together displayed more than 40 cars in an area of 5,000 square metres.

Ford's New Concept Focus made its world debut during the motor show.

More than half of the 540 cars shown during the motor show have been bought or ordered, according to organizers.

China remains the world's fastest-growing auto market and is attractive to global automakers, despite a slow down in car sales over the past two months.

Sales of domestically-made vehicles grew by 34 per cent to 4.39 million units last year, including almost 2 million passenger cars.

The motor show was also a good opportunity for Chinese customers to learn about the latest developments in the world's auto industry, trends that will affect their choice of car.

"The motor show is a real eye-opener. I saw many of the cars for the first time, such as Maybach, Aston Martin and Lamborghini," Deng Shangtao, a visitor, told China Daily.

More than 400,000 people visited the motor show.

On June 12, its first day open to the public, the motor show attracted more than 80,000 visitors. Two-fifths of them were from places outside Beijing, said Zhang Hengjie, an official from China International Exhibition Centre Corp, another organizer.

However, there is a lot that can be improved in the biennial motor show.

"The motor show is too short. Such a big world event needs some 16 days according to international practice," Hsu said.

"Time was very limited for the media and manufacturers as there was only one media day. It should take at least three days because it is most important for us to disseminate our products and strategies to the public."

There were more than 10 press conferences organized by manufacturers from 9 am to 11 am on the motor show's media day on June 9.

"The motor show is not properly timed. It's too hot in June. It could be held at another time, such as in April or October to coincide with many automakers' new product launches," Hsu said.

Li Shufu, chairman of Geely - China's privately-owned carmaker - complained about insufficient area at the motor show.

"We only got 740 square metres, including 350 square metres outdoors. That's far from our original plan," Li said.

The motor show had a total area of 110,000 square metres - 80,000 at the China International Exhibition Centre and 30,000 at the China Agriculture Exhibition Hall.

Zhao said organizers plan to build a new, larger exhibition centre near the Beijing International airport with a total investment of more than 4 billion yuan (US$483 million) for the next motor show in 2006.

The new centre will have a total indoor area of 200,000 square metres, with 100,000 available for the next motor show, Zhao said.

Foreign automakers also complained that the fees charged by organizers were too high.

Foreign automakers were charged US$260 per square metre, almost double the fee for Chinese displayers. The charges are much higher than other major international motor shows.

"We will cut charges on foreign automakers and increase those on Chinese companies step by step. They will be similar for the next one or two motor shows in Beijing," Zhao said.

During the motor show, another three international auto exhibitions were announced, to be held later this year and next year.

Guangzhou, capital of Guangdong Province in southern China, will host the second international auto show from November 23 to 29 this year, with an expected area of 80,000 square metres.

Shanghai will hold its 11th international motor show from April 22 to 28 next year.

The Shanghai auto show is competing with Beijing to be the biggest event of its kind in China.

The Shanghai auto show will have a total area of 120,000 square metres, up 50 per cent from last year.

Changchun, labelled "the cradle of China's auto industry" in Jilin Province, will also witness a fourth international auto fair from July 15 to 24 next year.

FAW, China's biggest automaker based in Changchun, started to produce vehicles in 1953.

Organizing motor shows in China is a very lucrative business thanks to the booming car market.

There were more than 50 so-called "international" auto shows and fairs across China last year.

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