The Chinese market article demonstrates how most of the German companies surge forward in penetrating Chinese market by manufacturing most of the small premium cars in china. The companies are providing a variety of relatively exclusive as well as less expensive cars which are also utility-free. This evidently shows that cheap cars make the China market appear incompetent in production of quality cars portraying a bad image in the world. According to the global market, quality products use expensive materials and equipments which makes them expensive. Nations that produces expensive products such as cars are respected and ranked high in terms of innovation and competency. The article states clearly that rich population in China does not fancy cheap cars and offer extensive resistance to low premium cars manufactures. Just like several other nations, China refuses to believe in quantity of the cars, rather, focus on the quality which is used to rank the ability of a country in manufacturing of products. Despite the fact that the companies prefer smaller returns as a considerable demand is expected to grace the market due to the rapid population, it is clear that competency is not about small returns but the ability to produce long-lasting quality cars. According to the article, China serves as a leading global market for the German car manufacturing companies. This is due to the European recession rate on the economy. Poor products make the economy of a country to deteriorate and this is what is observed in Germany.
The Market Overview
According to the article, establishing manufacturing sites in china has been a key target for the car companies in the Chinese market. This is because China offers an opportunity for such companies to develop poor products that makes its economy to deteriorate. According to the companies, the local manufacturing cost in china is cheaper due to the relived import duty of up to 25% and an omission of additional value added tax of 17% to the companies producing their cars in china. However, it is high time China comes up clear in reinforcement of its laws because if nothing is done, the economy of the country will deteriorate further. This will also make other nations to despise China in terms of innovation and development.
Audi which has preceded other companies in the Chinese market has already set on sites to advance in the production. This can be comprehensively depicted by Audi’s report on the growth of 18% against 11% of the compact luxury cars. BMW and Daimler are also following the cue to increase the Chinese production and could hit the market as soon as 2017.The rich buyers in the Chinese market however tend to compare bigger cars associated to quality. The elegant customers would disregard cheaper brands that resemble expensive cars.
The fact that poor cars have dominated the Chinese market proves that the country permits companies that only focus on profit without considering the quality of the products and the lives of the users because poor cars puts peoples lives at stake. It is high time that China rejects such companies and reinforces its business laws in order to restrict poor products from penetrating its market.