Beijing auto show: Car firms pin hopes on China

Hundreds of fans who showed up at the Beijing Auto Show to see their beloved South Korean actor Kim Soo-hyun, who was signed up by Hyundai to give its latest SUV a lift, were disappointed when the star of The Man From The Star show failed to appear.

Kim, who plays a stranded alien in the show which is hugely popular Asia-wide, was forced to delay the performance by the Beijing public security bureau for security reasons, prompting outrage among the waiting fans.

China is undergoing an austerity programme at the moment, with president Xi Jinping orchestrating a major crackdown on corruption and other forms of decadence.

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A BMW Vision Future Luxury concept car is displayed during its world premiere ceremony at Auto China 2014 in Beijing. Photograph: Jason Lee/Reuters

At Beijing Auto Show, this means government buyers were little in evidence, but more importantly for most of the cameraphone-toting 120,000-plus visitors per day, it means the traditional legions of scantily-clad models on the exhibition stands were replaced by much more demurely dressed young women and men.

In many ways, that brings the Beijng event into line with the rest of the big international auto shows which long ago abandoned the scantily-clad models.

But there is no way the world’s car makers are going to let either the official crackdown on decadence or Kim’s non-appearance dampen enthusiasm for this show.

There is too much riding on it. The world’s carmakers are looking to China’s biggest auto show this year to help boost sales in this vast, but slowly shrinking, market.

Total sales in China last year reached 17.9 million vehicles, but growth is expected to slow from 15.7 per cent to as low as 8 per cent. Of course, to put that in perspective, a “low” of 8 per cent growth would be a dream for most other markets.

It is easy to see how Chinese sales propped up the devastated global industry while the US and Europe slumped following the 2008 financial meltdown.

New models were unveiled at a dizzying rate at the show. Ford introduced a new Escort sedan designed in China for global sale, and launched its luxury Lincoln brand, with plans to woo younger buyers with a service allowing them to make customised versions of any of its models.

GM bowed a new version of the Chevrolet Cruze and displayed its Trax SUV, targeting China's booming sport utility market.

Dealerships
In the domestic corner, not to be outdone Chinese SUV maker Great Wall unveiled its latest model, the Haval 8.

Fiat and its Chrysler arm announced that their Jeep brand would begin manufacturing in China next year with Fiat's local partner, Guangzhou Automobile, allowing it to escape steep taxes.

Jeep displayed its Renegade model aimed at China's booming market for sport utility vehicles. Jeep chief executive Mike Manley said the company plans to add about 50 dealerships this year to a network of about 250.

“It’s clearly going to be the biggest market for SUVs in the world,” Manley said. “China is going to continue to grow, even if it may slow down in the short term.”

The show is also the site of some great pitched battles – it's fun to watch General Motors outline its plans to invest €4.5 billion in China by 2017 and build more plants next year as it competes with Volkswagen and local competitors such as Shanghai Auto.

Private Chinese automaker BYD unveiled the Tang plug-in hybrid, a coupé-like saloon which claims a 0-100 km/h time of 4.9 seconds. The BYD stand had lots of focus on its success in the public transport arena, including its E6 Taxi. “It seems a bit more comfortable than the kind of taxi I’m used to,”said one man trying out a hybrid taxi.

Daimler’s Denza electric car, a local Chinese brand jointly developed with Chinese partner BYD, goes on sale in China in September, retailing at a hefty €42,800 (369,000 yuan), although it will be eligible for local subsidies.

The five-seater car will be produced by Shenzhen BYD Daimler New Technology and will have an operating range of 300km.

In the Denza, three men were in the back assiduously testing the drinks-holders with their jars of tea. One man named Fu, from Shanghai, who owns his own business, said he felt it needed to make more of an impact to succeed.

Ferrari
"I can't tell if it's an electric car or a conventional car. Their target customers are environmental people, they like to see the difference. If it's a brand new platform, you can do something brand new, like the Prius did. I love electric cars, but there is a lack of excitement about this," said Fu.

“The 300km driving distance is inconvenient for most people. I had very high expectations of this car.”

China is the biggest market remaining for luxury brands – an outpost at this point – and there were reports that one man bought five Bentleys in one go at the Bentley stand, where the hybrid was creating buzz.

On this fabled preserve, a suavely and very expensively dressed youngster named Xia Xiaochen was checking out the Flying Spur.

“I have one of these already. If you ask me what I like about this car, it’s obviously the look. The engine is important too, but the look is the main thing,” he said.

“What I really like today is the McLaren. My family has a car trading business, so I think we might investigate this one further.”

The Rolls-Royce stand was thronged with people, but very few were permitted behind the barrier to sit into the cars. You may not visit the silver lady without an appointment.

“You are only allowed if you want to buy a car,” said one young woman guarding the stand.

One young Beijinger said Ferrari was his favourite. “I love Michael Schumacher and I feel so sorry for what happened to him. My favourite car at the show is the Ferrari Formula One car over there,” said Liang Xiaobo.

"If I make enough money, I'd probably buy a Lamborghini. Realistically, though, I'm probably going to get a Hyundai."

Joint venture
There is less talk about selling Chinese cars overseas these days, although Chinese automaker Qoros is planning to use Slovakia as its first global export market with the goal of rolling out the brand across western Europe within two years.

Qoros is a joint venture between China's Chery Automobile and Tel Aviv-based holding company Israel Corp.

The Qoros is a nice looking car, and feels solid when you sit behind the wheel. The finishing, so often a let down with Chinese cars, seems impressive, although we did close the boot and were unable to get it to open again.

A man named Dai, who works in the car industry, said of the Qoros: “The materials are good but the design needs to be improved. I hope all the components are compatible and I hope we can make all the parts by ourselves instead of outsourcing it.”

As for the Korean star Kim, well, he appeared later in the afternoon, and all was well. Even the beloved alien’s non-appearance couldn’t break the Beijing buzz for long.