China's struggling automakers jump on SUV boom - electric air purifier
BYD is known for its electric vehicles, but this year's flagship model is S7, a gasoline-powered SUV.
It is equipped with indoor air purifier, radar and digital TV.
The on-board hard drive can hold 1,000 movies.
This year is the SUV year in China.
No matter what expertise they have in the past, from global brands to ambitious rookies in China, automakers are scrambling to take advantage of the explosive popularity of sport utility vehicles.
"We are selling vehicles with a wide range of technologies," said Isbrand Ho, BYD's export sales director . ".
"These are all open. . .
Premium models for European brands, but we are offering them to ordinary people.
"The SUV boom is in conflict with Beijing's efforts to push automakers to develop electric vehicles and sell small cars to help curb smog and import oil demand.
But the safety profile of the SUV has attracted Chinese drivers who face chaos on city streets, while electric cars from BYD and other producers have struggled to attract buyers.
Suv's profit margin is growing, which is an economic lifeline of China's automobile industry. As global brands enter China's small car market, the Chinese auto industry is being squeezed.
"Almost everyone is targeting SUVs," said Namrita Chow, an analyst at IHS motors . ".
SUV sales in China rose 20% last year to two.
According to LMC Automotive, 5 million vehicles, more than double the 8% in the overall car market.
SUVs account for 18% of all vehicles sold.
According to Yale Zhang, general manager of Auto Foresight, a research company in Shanghai, this market share may rise to 25% in the next few years.
This will be twice as high as suvs 12.
5% of the US marketS.
Last year's market
Overall, Chinese drivers bought more than 19 million cars last year, while Americans bought 14. 5 million.
The US is still the largest market from a financial perspective, although China is expected to pass soon.
2020, automakers and analysts expect annual sales in China to take 14 million units from now --
More than all the growth of the US economy. S.
Brazil, India, Russia and China are one.
General Motors in China
Bob Socia, president of GM China, said SUV sales are expected to reach 4 million units by 2020.
"We focus on two key markets --
"Luxury cars and SUVs," said Socia.
"They were considered niche markets in the past, but now they are mainstream.
"Global automakers are re-designing smaller SUVs for engines for China in response to taxes levied by the government on engine size. Ford Motor Co.
Plans to produce two of its four SUVs in the southwestern city of Chongqing, namely, EcoSport and Kuga.
Its Edge SUV will be imported from explorers in Canada and the United States.
David Xiaoqi, president of Ford Asia, said: "We now have our full range of SUVs --"Pacific region.
Italy's Fiat SpA, a latecomer to China, hopes an SUV will help it gain a foothold in the market where it founded its first joint venture three years ago.
Freemont, based on the Dodge tour, appeared at the Shanghai auto show last month.
Also at the auto show, global automakers, including Mercedes-Benz and Nissan, as well as local brands such as Geely Holding Group and Great Wall Motors, which own Swedish Volvo cars.
A new SUV or SUV concept car is displayed.
The SUV boom is a detour for China to become the leader of electric vehicles in Beijing.
Chinese leaders hope to clear smog
They see this as a strategic weakness that hangs over cities and controls dependence on oil and gas imports.
With the expansion of car ownership, growing gasoline demand has pushed China beyond the US to become the world's largest energy consumer.
In 2009, Chinese leaders set a target of producing 5 million electric vehicles a year by 2020, but after development proved more difficult than expected, they informally dropped the target.
BYD, China's leader in electric vehicles, sold only 1,700 electric vehicles and 700 electric buses in 2012, and said it expects sales to double this year.
"They will continue to push it.
But it didn't take off as they planned . "
"Progress is a bit slow.
Several Chinese SUV buyers are driving away
But most people think they are protection against traffic jams.
"Chinese consumers like SUVs.
"They think they are safe home cars," said Zhou of IHS Automotive . ".
"My idea is that if I buy the best I can buy, I buy the safest one.
"The boom in SUVs can be particularly important for local Chinese automakers, who are in trouble when global competitors launch new models for their traditional low-cost models
Because they are as big and heavy as trucks, government regulations on fuel efficiency and emissions are more tolerant of SUVs.
This makes them less expensive to produce and helps automakers with less advanced technology than foreign competitors.
Great Wall has become a breakthrough success in China's automobile industry with its suv advantage.
Headquartered in Baoding, an industrial city in southwest Beijing, the company said SUV sales rose 95% year-on-year in the first three months of this year, accounting for half of its 180,000 units sold.
According to Max Warburton, a research analyst at Bernstein, this makes the Great Wall, at least temporarily, the world's largest gross profit margin of 28% in the automotive industry.
With the downturn in the electric car business, BYD is increasing the importance of suv.
In addition to S6 and S7, it has two more on the drawing board.
Buffett's Berkshire Hathaway company.
He holds a 10% stake, blaming fierce competition for a 94% drop in profits last year.
Ho, BYD's export director, said BYD expects S6 sales in foreign markets such as Russia and Egypt to double this year to 50,000 vehicles.
"The SUV market is very attractive in Russia, Ukraine and the Middle East.
They want a four. wheel-
"Drive to snow and sand," he said . ".
The company is also developing. wheel-
Ho said that driving technology drives two wheels with an internal combustion engine, two wheels with an electric motor, and does not require driving trains that take up ground space.
The electric motor will also play a role in braking, he said.
"This will be a unique four. wheel-"Drive," he said.