China Car Times Newsletter - Live From China.

Welcome to the China Car Times newsletter - the weekly run down of what is happening in the world's biggest auto market. Is this email not displaying correctly? View it in your browser. Hi there The UK, along with the USA, is currently undergoing a major debate, a debate that was basically a non-issue in China and that debate is High Speed Rail. The last time I visited the UK (I am a UK citizen, of course) I took a train from London to the North West which took around 4 hours for a 320 km journey. Last week I visited Jinan, starting from Qingdao the distance is about the same (353km) but on China’s High Speed Rail network it took me just over two hours, compared to 4-5 hours in the car along a two lane highway. Driving there and back would have cost around 600RMB, a round trip was around 250RMB rounding up the tens. The high speed network in China is proof of China’s 21st Century ‘Can Do’ attitude, the network spreads across China, across the mountains of the east and down the plains of the central regions, and even spans over Tibetan glaciers taking much needed tourist Yuan’s into a highly deprived area. Of course, China does not suffer from the ‘Not in My Back Yard’ segment of society which are a stumbling block for the UK high speed rail network. Chinese attitudes towards high speed rail seem to be overly positive with only one Hangzhou based Maglev line gaining protests which led to its cancellation, the UK high speed rail project gains protests at every step of the way. Of course, one of the biggest arguments against the UK high speed rail network is that the final costs is likely to run over budget as all UK major infrastructure projects tend to do, with the final cost being passed onto the customer, this project could potentially become Britain’s big white elephant. That’s not to say the Chinese one is running in the black either, it’s also bleeding money due to the high investment costs, but those costs are likely to be recouped over the next 20 years with relative ease, the railway network has always been a close traditional ally of the Communist Party which has led to strong unwavering support for both parties. Sub Brands – Where Did the Enthusiasm End? Sub brands first came out onto the market in late 2010 when GM aired the Baojun brand, three and a half years later several manufacturers came out with their own sub brands in partnership with their local partners. But it seems that the momentum has worn off, despite the manufacturers planning to ramp up their model ranges it seems that models are limited to just one or two models. GM’s Baojun – Two models (1 sedan, 1 rebanded Chevrolet Spark) Nissan’s Venucia – Three models (rebranded Tiida sedan/hatch, Livina Wagon) Honda’s Everus – One model (rebranded Honda City) Honda’s Ciimo – One model (Honda Civic) In addition, we it is rumored that Ford, Kia, and VW on the verge of launching their own sub brands but with the momentum slowly running out of steam and Volkswagen looking to make a super cheap sub 75,000RMB car it seems that there is no real need for a new brand with no direction in a market flooded with brands.Baojun has also delayed its much talked about SUV product from 2014 to late 2015, hinting that demand is slowing. BYD Revives Sales Momentum With New Car Range By Ash on Aug 26, 2013 11:33 am BYD’s sales rocketed in the first half of 2013 with over 250,000 sales recorded by the company according to an announcement made over the weekend. BYD saw its sales grow rapidly in 2008-2010 but saw a severe sales slump from 2010 onwards where concerns about its quality levels and unusual sales network complete with poor performing dealers dragged the company down. BYD revitalized itself with the introduction of new models which carried BYD’s own self developed technology including direct injection small displacement engines which Chinese consumers craved along with dual clutch gearboxes. BYD announced that half of its groups revenues came from its automotive industry activities, in total BYD reported first half profit of 426.9 yuan, far ahead of the of the 16.3 million the company made in the same period in 2012. The company’s electric vehicle range is expected to continue to expand in 2013 with the introduction of a range of commercial vehicles to compliment the existing range of electric passenger cars and buses. BYD’s electric bus range... Read in browser » Chinese Made Skoda Yeti Gains Stretched Wheelbase By Ash on Aug 26, 2013 11:13 am The Skoda Yeti has just been introduced into China as an imported model but the compact SUV is expected to be rolling down Shanghai-Volkswagen production lines in the coming weeks where it will gain an extra 60mm in its wheelbase to account for Chinese consumer love for extended wheelbase vehicles. The Shanghai made Yeti will measure in at 4275mm, 1793mm, 1682mm (LxWxH) and will have a wheelbase of 2638mm with power coming from a 1.8T engine and also a 1.4T engine. The Chinese made one has also been given a makeover to bring it on the same level as the overseas version, the new Skoda grill has been given the same treatment as the recently launched Skoda Superb. When launched later this year the Yeti will likely be in the 180,000RMB and rising range, a stark contrast to the near 300,000RMB price the imported version demands. Read in browser » Green Cars Gaining Speed in China By Ash on Aug 26, 2013 11:00 am In the first part of the year 5889 new energy vehicles made it to Chinese roads with around 10,000 new energy vehicles being produced each year. The Chinese government originally planned to have 500,000 New Energy Vehicles on teh road by 2015, a goal which is obviously far away and blame being laid at the feet of the government by industry bodies and consumers for continually delaying subsidy polices for private buyers. Hangzhou, the home to Geely and a number of other automakers, is apparently leading the way in developing China’s EV rental industry. Rental bikes are extremely common in Hangzhou with tourists and local residents renting them to get around the mostly flat city center, but now auto rental companies are popping up to offer EV rental services. Geely’s recent JV with Kandi has been given the name of Zhong You. The new company plans to offer a ‘micro public service’ of EV rental vehicles that consumers will be able to rent for just 20RMB per hour after leaving... Read in browser » BYD E6 Becomes BYD T6 In Commercial Vehicle Crossover By Ash on Aug 23, 2013 01:37 pm An image leaked from BYD for a new EV commercial vehicle called the T3 has surfaced in Chinese media reports this week, the new T3 EV-CV uses the E6 passenger car but altered with the addition of an enlarged cargo capacity area in the rear where the trunk and rear seats would normally be. Previously images of a mid size EV-CV from BYD were leaked, the T5 uses the same technology as the T3 and E6 but it is expected the the T3 will have a greater range. The T3 measures in at LxWxH 5200 x 1822 x 2230mm. BYD haven’t yet revealed the load capacity for this new truck but it is thought to have a 200km range. More news as we get it! Read in browser » Chinese EV marker 'Snowden' Trademark for new EV, Haima Ready to Use 'Snowden Tech' By Ash on Aug 23, 2013 01:14 pm Whilst the blow back from Edward Snowden’s exploits in exposing government spying on its citizens still reverberates around the world and makes cold war enemies bicker once again, Haima have been busy pushing a few trademarks through China’s trademark system. The company has registered the name ‘Snowden‘ in Chinese – Si Nuo Deng/??? for its new electric car. Initially the Snowden trademark was registered by Beijing’s Hong Yuan Lan Xiang (HYLX) which will eventually create EV technologies, this company has already gained major interest from passenger car and bus and coach companies for its technology, however it seems that Hainan based Haima Auto have already signed a contract with the company and plan to use the name in their forthcoming EV model. Hong Yuan Lan Xiang’s CEO Mr. Zhu He Feng registered the name on August 15th for use within the automotive industry on technology and full passenger cars. On the surface it seems that HYLX’s technology is nothing new, the company plans to use battery swapping and battery rental... Read in browser » Tesla Accepting Deposits in China – What Trademark Issues? By Ash on Aug 23, 2013 10:34 am Tesla are now accepting deposits on cars in the Chinese market prior to their launch in the Chinese market, a post on Weibo from Kingston Chan, the Tesla dealer for the Chinese market revealed that Tesla is now accepting deposits on cars ahead of the company’s official launch later this year. Tesla hit a potential roadblock earlier this month when it was revealed that a Chinese businessman had already registered the phonetic translation of Tesla in Chinese several years before Tesla officially came into being, in a strange twist the Chinese Tesla was also set to make electric cars – albeit electric golf carts. Currently Tesla has just one dealership in the Beijing area but we suspect that Tesla will move to expand into other wealthy markets such as Shanghai, Shenzhen and Chongqing in the very near future. Read in browser » This Hong Qi L9 Is Out For a Stroll By administrator on Aug 21, 2013 03:24 pm Late last week I had to jump on the highway to get to the airport out of Qingdao for a quick day long client meeting in Shanghai, I wasn’t really looking forward to a morning of queuing, waiting, get my nuts probed in the airport and then being fed stale peanuts on the airplane but somehow this sudden appearance of the fantastic of the new L9 limo more than made up for it. The beast was spotted on a flatbed truck coming out of the Laoshan district area of Qingdao where it was either doing some mountain road testing or being shown to a prospective client or dealer group. Hidden under the sheet was a Beijing license plate meaning the 5 million RMB car probably cant go into Beijing’s downtown areas during the day effectively making the car useless for a budding Chinese tycoon that needs to get to the heart of Chinese government in a hurry. The L9 was a real head-turner, the truck driver was clearly getting angry... Read in browser » Geely Emgrand EC9 Breaks Cover – Geely's New Flagship Car By administrator on Aug 21, 2013 02:57 pm Geely is apparently working on a new flagship car that is set to be named the EC9 according to Chinese automotive sources, the new car is set to be named the EC9 which will sit above the current EC8 which is currently on par with the 8th generation Honda Accord in terms of size. The EC9 is likely based on the KC concept car that was aired at the Shanghai Auto Show earlier this year, the KC concept measured in at 4960mm long with a 2880mm long wheelbase. The power plant for this motor has not yet been revealed but we suspect that it will feature one of Geely’s new turbo powered engines with a 2014 launch date in mind. Read in browser » Is Beijing Auto's First Compact SUV an Ecosport Clone? By Ash on Aug 20, 2013 03:07 pm If you make a compact angular SUV with the spare tire mounted on the trunk much like Ford’s own Ecosport, does it make an Ecosport clone? This is the question that we have to ask when we saw Beijing’s EC20 SUV over on auto.163.com, the new compact SUV was shown in rendered form just over two months ago here on the pages of China Car Times, but it seems the rear mounted wheel has been ditched to give the new SC20 some credibility and shield off the cries of ‘Clone!’ This new SC20 is supposedly built on top of the E-series of vehicle which itself is a Mitsubishi Colt which must give at least some promise of semi decent handling when compared to its local rivals. Measuring in at 4.3m long and 1.75m wide the SC20 is smaller than the market’s current hot SUV’s like the Haval H6 and Chery Tiggo3. Power will come from the same units as the E-Series vehicles, meaning 1.3L and 1.5L engines with 5 speed... Read in browser » Dongfeng's Own Cadillac Takes Shape in China By Ash on Aug 20, 2013 02:51 pm Dongfeng is a company with many arms and many hands, sometimes it seems as if the head doesn’t quite know what the arms and hands doing, hence the introduction of some strange looking cars from Dongfeng’s smaller subsidiaries. The below V20 comes at a time when more manufacturers are placing a greater emphasis on the design of their cars, but Dongfeng has decided to look at the Cadillac SRX for angular inspiration at the front of the vehicle which slowly faded away into buying parts from a catalog as they got to the rear end where you can find some peculiar LED lights. Pricing: expected to be 80,000RMB to 100,000RMB with the only bright point (and selling point) being a 2.0L naturally aspirated Nissan engine from the Qashqai/X-Trail range mated to a 5 speed auto, but this is a big car with a tiny engine. Will it move, more to the point, will it even sell? Read in browser » Qoros Fails Environmental Government Test By Ash on Aug 19, 2013 12:57 pm Qoros has failed an environmental test according to Chinese automotive media reports from this morning. Qoros has already aired its future product range at the Geneva and Shanghai Auto Show this year and were aiming to have their first product on the market in the fourth quarter of 2013 and a new model following every six months. The joint venture between Chery and Israeli Corp gave birth to the Qoros brand with the company setting up its production center in Changshu, around 100km from Shanghai with production reaching 150,000 units in the first phase and increasing to 350,000 units in the second phase. Although small scale production has been underway for some time whilst Qoros evaluates quality levels but Changshu's Environmental Bureau has effectively pulled the plug on mass production pending further inquiries into the environmental effects of the factory on the local environment. According to anonymous sources quoted by auto.163.com, the factory has not been approved by the environmental bureau and can only carry out limited production until the... Read in browser » Opel Launches Zafira MPV in China By administrator on Aug 18, 2013 11:55 am Opel is a forgotten brand in the Chinese market but the German’s are trying to rectify that with the launch of the all new Opel Zafira. Under GM’s control in the Chinese market, Opel was left behind Saab and Cadillac in the luxury car stakes but Opel want to change that with more emphasis on their setting as a semi premium brand. Opel currently sells the Insignia wagon and Antara wagon in the Chinese market, both in the 200,000 to 300,000RMB price segment, the Zafira MPV has also joined this segment with pricing from 269,900 to RMB 309,900 depending on specification for the 7 seat, 1.4T powered car. Opel products are sold through Opel's 22 dealerships and serviced through its 55 aftersales service centers. Read in browser » China Investigator To Look Into Banking, Auto and Communications Industries By administrator on Aug 18, 2013 11:40 am From Reuters: China's powerful price regulator could target the petroleum, telecommunications, banking and auto sectors next in its investigations into violations of the country's anti-trust laws, state media quoted a senior official as saying. The National Development and Reform Commission (NDRC) would look at industries that have an impact on the lives of ordinary Chinese, China Central Television (CCTV) quoted Xu Kunlin, head of the anti-monopoly bureau at the NDRC, as saying on one of its programmes. The NDRC has launched nearly 20 pricing-related probes into domestic and foreign firms in the last three years, according to official media reports and research published by law firms. But the scope of its investigations in the world's second-biggest economy have gathered pace in recent months and coincide with criticism in official media about the price of goods such as milk powder, medicine, luxury cars and jewellery. "When you look at activities around the world, regulators tend to investigate sectors where their investigations can have a direct impact on consumers and that will... Read in browser » Qoros 3 Hatch Pops Up on Factory Line By administrator on Aug 18, 2013 11:37 am Qoros haven’t yet launched their vehicles, the first vehicle is set to be a compact sedan but with Qoros are ready to follow up with a new car every 6 months which means this new hatch could be out in early 2014. Qoros have their factory in Changshu, just some 100km from Shanghai where they plan to build a major export hub to satisfy a perceived demand for their cars in Europe and the USA. Power will come from a naturally aspirated 1.6 and a 1.6T engine. From a design point of view the 3 hatch follows the same clean cut lines as the sedan and has a hint of VW’s Scirocco and Chery’s own A3 around the rear. Expect this model to be shown off at the Guangzhou Auto Show and on the market in early 2014. Qor Read in browser » Volkswagen Launches New Engine Plant in Changchun By administrator on Aug 18, 2013 11:23 am Volkswagen opened its new engine plant in Changchun late last week, the new plant from Volkswagen FAW Engine (Dalian) is one of seven new plants that Volkswagen plans to open in the near future. The new factory has machining production lines for four major automobile components including cylinder body, cylinder head, crankshaft and connecting rod and assembly lines of cylinder heads and engines. It has the most advanced production, processing and testing equipment in China and stays at an international leading level in precision and automation. The Changchun branch will have the first flexible production line in China for production of different versions of EA888 engines. The EA888 Gen 3 engine is the first engine in China which is able to fulfill Euro VI emission standards. Compared to engines of the previous two generations, the EA888 Gen 3 engine, with comprehensively leading technologies, delivers substantial improvements in weight reduction, performance, emission and fuel economy. Prof. Dr. Jochem Heizmann underlined: "The launch of production of Volkswagen FAW Engine (Dalian) Co., Ltd.'s... Read in browser » Unknown Lifan Hatchback Spotted Ahead of Launch By administrator on Aug 18, 2013 10:14 am Lifan’s efforts at car design are improving at a rapid rate that is both interesting and helping them stay ahead in the export race, this new hatchback seems to have a hint of Kia at the rear but elsewhere its all Lifan’s own design. The new car has yet to be named but we suspect it will be the new Lifan 530 hatch, we will know for sure at this years Chengdu Auto Show which opens soon. Chinese media are saying that it is a new crossover but it doesn’t look to be anything beyond the usual chunky hatchback that is all too common. Power will come from a 1.5L and a CVT or a 5 speed manual with pricing expected to be from 60,000RMB and rising. Read in browser » Tesla Gets Shanghai'ed Prior to Launch By administrator on Aug 14, 2013 11:57 am Above: The Teslamotors.cn web page that Zhan Bao Sheng registered ahead of time. Like many international companies entering into China, Tesla has failed to protect its branding and logo IP prior to its launch, you can read many more examples over at Chinalawblog.com where the excellent lawyers that run the blog pour over case after case of branding misery. Chinese automotive media are reporting heavily on the fact that the Chinese name that spells out Tesla (Te Si La) has already been registered as early as 2006 and approved in 2009, the Chinese press have been informally using this name since then. The entrepreneurial soul behind the Tesla name grab has already been outed by the Chinese media, Mr. Zhan Bao Sheng has apparently started his own Tesla long before the real Tesla’s musk got in on the action, except Mr. Zhan was largely attaching the Tesla logo to golf carts rather than actual electric sports sedans. What does this mean for Tesla in China? It means that without the... Read in browser » Sales of Import Car Drop, Nobody Happy With High Prices By Ash on Aug 11, 2013 03:36 pm Last week Xinhua reported that Western car manufacturers have a monopoly on the Chinese luxury car market where manufacturers are unfairly setting prices leading to huge profits from the Chinese market, Xinhua fired the first shot in the battle of the luxury marques, but other media outlets and government bodies are also getting their hands bloody. Most imported car dealers will tell you that prices are high because of import tax, Rao Da, the chairman of the China Association of Automobile Manufacturers (CAAM) told Chinese media that imported cars only have to pay three kinds of tax: Customs Tax, Consumption Tax and VAT. Rao Da mentioned that cars above 4.0L displacement have a 100% tax, but many of the cars sold in China are far below this level of displacement “During the economic crises, many Western brands relied on China to make huge profits.” he said. Chinese media say that Western monopolies of the luxury segment is only leaving consumers hurt. One import specialist that Auto.163.com talked to on the... Read in browser » More For You To Read China Auto Sales Up in July, Chinese Brands Lagging Behind Germans Tax Planning is Crucial for Automakers in China The China Auto Brand Quiz Japanese Man Shouts Loyalty to China During Traffic Stop BMW-Brilliance's First Car Looks a Yema Product Our Homepage Follow on Twitter Forward to a Friend Contents: BYD Revives Sales Momentum With New Car Range Chinese Made Skoda Yeti Gains Stretched Wheelbase Green Cars Gaining Speed in China BYD E6 Becomes BYD T6 In Commercial Vehicle Crossover Chinese EV marker 'Snowden' Trademark for new EV, Haima Ready to Use 'Snowden Tech' Tesla Accepting Deposits in China – What Trademark Issues? This Hong Qi L9 Is Out For a Stroll Geely Emgrand EC9 Breaks Cover – Geely's New Flagship Car Is Beijing Auto's First Compact SUV an Ecosport Clone? Dongfeng's Own Cadillac Takes Shape in China Qoros Fails Environmental Government Test Opel Launches Zafira MPV in China China Investigator To Look Into Banking, Auto and Communications Industries Qoros 3 Hatch Pops Up on Factory Line Volkswagen Launches New Engine Plant in Changchun Unknown Lifan Hatchback Spotted Ahead of Launch Tesla Gets Shanghai'ed Prior to Launch Sales of Import Car Drop, Nobody Happy With High Prices  follow on Twitter  | forward to a friend  Copyright © 2013 China Car Times, All rights reserved. You are receiving this email because you opted to receive regular updates on the Chinese automotive industry from www.chinacartimes.com. Should you wish to unsubscribe please click the 'unsubscribe' link above, or reply directly to editor@chinacartimes.com with your request to be unsubscribed. 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