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Luxury car logos to get Chinese touch
(Shanghai Daily)
Updated: 2006-02-15 13:32
A new state regulation may take some of the luster off the luxury car
business as image-conscious customers will soon be displaying Chinese characters
if their vehicles are made inside the country.
The government has ordered the nation's automakers to stamp their name in
Chinese characters on the tail of every domestically made model, including those
that carry BMW and Mercedes Benz logos.
The new rule, posted last week on the National Development and Reform
Commission Website, applies to all cars sold after May 1.
The regulation was designed to protect consumer rights and enhance brand
awareness, said the top planning and monitoring body.
"Obviously, the Chinese government hopes to highlight the brand image of
Chinese companies as they cooperate with foreign auto giants," said Wang Zhihui,
an auto analyst at Shenyin Wanguo Securities Co.
"Domestically made premium cars such as BMWs, Mercedes Benz and Audis will be
affected most as the new sign is likely to damage their high-end brand image and
raise concern over quality," he said.
"The new regulation will change their marketing strategy as they continue
their localization in a move to lower car prices to attract more Chinese
customers, and it could boost the sales of other imported cars such as Lexus and
Volvo."
BMW Motors Corp now produces three models of its new 3 series and 5 series in
China under cooperation with Brilliance Automobile Corp, turning out more than
15,000 units a year. Daimler-Chrysler AG rolled out two Mercedes Benz E-class
models assembled in Beijing at the end of last year, while Audi last year sold
more than 55,700 units.
These Chinese-made cars mainly target the domestic market as their prices are
about 30 percent lower than those of imported ones.
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