EDITORS DESK

Those who’ve recently attended the Manila International Auto Show (MIAS) or are simply in the market for a new car these days have likely noticed one trend lately: the many new Chinese car brands. Just this year, we’ve witnessed the arrival of Dayun, GWM, Jetour, and Hongqi. The salvo isn’t quite over yet as we expect more brands like Omoda, Jaecoo, Exceed, and SAIC to arrive later in the year. Of course, this doesn’t include the brands that have already arrived in the past years: BYD, GAC, Haima, Weltmeister, Geely, Chery, Changan, Kaicene, Dongfeng, Foton, JAC and JMC. Brands like Maxus and MG are technically European, but their vehicles are now wholly-made and imported from China. We’ve seen this wave happen in the past, with brands like Chery, Changan, GWM, and Geely among the first to arrive, albeit in smaller numbers and under different distributors than the present. The results weren’t quite as encouraging, so why are they back in force? Is history repeating itself? Not quite. What makes this current charge different are the changing buyer tastes and global circumstances.

Large factories

First of all, in their home market, new car buyers are facing increasing pressure to move to new energy (electric or hybrid) vehicles. The Chinese government has done this by restricting the release of license plates for new vehicles. License plates of new energy vehicles (when purchased and registered in the big cities) are immediately released, while those for internal combustion engines (ICE) may face a delay of up to a year or longer, if not be subject to a quota. Unlike here, it’s illegal to drive a car without a license plate there. As such, buyers opt for electric to be able to drive their new vehicle immediately. However, this makes it difficult for the car brands that have invested millions in mega-factories to continue to produce ICE vehicles. To make the most of them (and keep their workforce employed), these ICE vehicles are now being exported to countries like the Philippines. Like China, we also drive on the right side of the road (which means no modifications or retooling) and an existing free trade agreement between the Philippines and China makes their price competitive. All this is happening while their production lines are being prepared for the shift to electric models.

Dramatic quality improvement

Unlike before, these vehicles have undergone dramatic improvements in quality. Building cars under license for brands like Toyota, Mitsubishi, Volkswagen, Ford, BMW, and Cadillac has taught these brands quite a lot about quality control, and they’ve now applied the same strict standards (and design philosophies) to their own brands and vehicles. The Chinese auto manufacturing industry has invested billions to computerize and auto-mate their factories to meet global export standards. Many of these vehicles are built on nearly automated assembly lines, with robots doing the bulk of the assembly work. In fact, these factories easily put to shame the size, scale, and automation of European and American auto factories.

Better prepared for the market

The Philippines is not a dumping ground for these cars, but more of a testing and staging ground for these brands’ future global aspirations. With new car sales figures on the rise, the time is right for these brands to enter the market and stake a claim. Yet there’s also much more care put into their establishment this time. Encouraged by the success of brands like Geely and MG (entering the top 10 in new car sales), these new brands have now begun partnering with larger firms with long track records in the Philippine auto industry. Unbeknownst to most of the public, many senior management personnel from established brands like Ford, VW, Subaru, Mitsubishi, and Honda, to name a few, have made the move to these new brands to help steer their early operations. Omoda and Jaecoo have even hired research firms to ask the public about their perception of Chinese brands and how to improve. This new wave of brands is not something to be feared, but to be embraced. Take a test drive in a Geely, MG, Chery, Changan, or GAC and you’ll be surprised at the radical improvement in styling, quality, and performance. Check their warranty too, as many are even longer than those offered by Japanese or Korean brands. You just might be won over. If not, the increased competition will only force the established brands to offer better products at more competitive prices. *(Iñigo S. Roces is the Motoring Editor of Manila Bulletin)*