How foreign brands are copying Chinese rivals with cheap SUVs
Over the past two years, Chinese brands have rolled out a variety of small SUVs at prices ranging from 66,000 to 110,000 yuan ($10,800 to $18,000).
It's been an effective strategy. In the first five months, the domestics sold more than 1.2 million SUVs of various sizes -- double the number from a year ago.
But it didn't take long for foreign automakers to respond. Now, global players are launching compact SUVs in China at competitive prices.
Take Honda and General Motors. Late last year, Honda launched sales of two compact SUVs, the Vezel and X-RV. Both models are priced below 129,000 yuan ($20,800).
These models have generated sizable sales volumes for Honda. By June, combined monthly sales of the Vezel and X-RV approached 17,700 units. Led by the strong demand for these two SUVs, Honda's China deliveries jumped 30 percent in the first half of this year.
General Motors jumped into the segment last year when it introduced the Chevrolet Trax at the starting price of 119,900 yuan. It is GM's least expensive SUV in China.
Through May, monthly sales of the Chevrolet Trax have topped 4,600 units. To improve its competitiveness in a market flush with cheap SUVs produced by local brands, GM cut the vehicle's starting price by 109,900 yuan.
Overall auto sales in China have slowed significantly this year due to the weakening economy. To revive sales, foreign automakers announced steep price cuts on SUVs and other models.
The Ford EcoSport and Peugeot 2008, for example, now sell for less than 100,000 yuan.
To fend off mounting competition from foreign rivals, Great Wall Motor Co., China's largest SUV maker, slashed prices of its most popular SUV models in June.
Now, the Haval H6 compact SUV costs 93,800 yuan -- a 6,000 yuan price cut. Likewise, the Haval H2 small SUV now is priced at 93,000 yuan -- a 5,000 yuan price cut.
SUVs -- especially small crossovers -- are hot because consumers like the high seat positions and dynamic design.
Most Chinese brands have scaled back their sedan lineups to focus on SUVs. They plan to add small SUVs to their existing lineups later this year.
And more foreign automakers are introducing cheaper SUVs.
This month, SAIC-GM-Wuling Automobile Co. -- a General Motors joint venture that produces commercial microvans -- will launch sales of its first SUV. The entry-level Baojun 560 compact SUV is expected to have a starting price of 80,000 yuan.
These vehicles will take the competition in China's SUV market to the next high level.
But it didn't take long for foreign automakers to respond. Now, global players are launching compact SUVs in China at competitive prices.
Take Honda and General Motors. Late last year, Honda launched sales of two compact SUVs, the Vezel and X-RV. Both models are priced below 129,000 yuan ($20,800).
These models have generated sizable sales volumes for Honda. By June, combined monthly sales of the Vezel and X-RV approached 17,700 units. Led by the strong demand for these two SUVs, Honda's China deliveries jumped 30 percent in the first half of this year.
General Motors jumped into the segment last year when it introduced the Chevrolet Trax at the starting price of 119,900 yuan. It is GM's least expensive SUV in China.
Through May, monthly sales of the Chevrolet Trax have topped 4,600 units. To improve its competitiveness in a market flush with cheap SUVs produced by local brands, GM cut the vehicle's starting price by 109,900 yuan.
Overall auto sales in China have slowed significantly this year due to the weakening economy. To revive sales, foreign automakers announced steep price cuts on SUVs and other models.
The Ford EcoSport and Peugeot 2008, for example, now sell for less than 100,000 yuan.
To fend off mounting competition from foreign rivals, Great Wall Motor Co., China's largest SUV maker, slashed prices of its most popular SUV models in June.
Now, the Haval H6 compact SUV costs 93,800 yuan -- a 6,000 yuan price cut. Likewise, the Haval H2 small SUV now is priced at 93,000 yuan -- a 5,000 yuan price cut.
SUVs -- especially small crossovers -- are hot because consumers like the high seat positions and dynamic design.
Most Chinese brands have scaled back their sedan lineups to focus on SUVs. They plan to add small SUVs to their existing lineups later this year.
And more foreign automakers are introducing cheaper SUVs.
This month, SAIC-GM-Wuling Automobile Co. -- a General Motors joint venture that produces commercial microvans -- will launch sales of its first SUV. The entry-level Baojun 560 compact SUV is expected to have a starting price of 80,000 yuan.
These vehicles will take the competition in China's SUV market to the next high level.
