In August 2011 Wu Hua Xian Tong Yuan’s Toll booth had a case of violence against a toll booth worker, one driver, in a bid to avoid paying a 10rmb highway fee bit the ear of a worker and escaped from the scene. A 3:45am a car with the Guangdong A plate left Wu Hua County on its way to Guangzhou City, at the toll booth the driver told the worker that he was a local resident and therefore didn’t have to pay the 10RMB fee, the worker advised otherwise, suddenly the driver made a jumpfor the worker and got his teeth into his ear, he lost a 4cm strip of ear in the process.

The driver fled the scene and remained on the run until recently, obviously toll booth security cameras are not that clear on picking up license plate numbers. The police caught up with the perp as he was sitting in a restaurant in Guangzhou. The 33 year old male is now in detention pending an investigation. Journalists were able to talk with him while in prison, where he admitted to being drunk at the time of the incident

BMW introduced the second generation 1-series in late 2011, with a 1.6T engine and also a naturally aspirated version, earlier today BMW also introduced the six cylinder 125i model which is priced in at 370,000RMB.BMW is hoping to play catch up with Audi in 2012, Audi has managed to hold onto a long headway in the Chinese market, largely thanks to its early market entry in comparison to its rivals.

Landwind are potentially borrowing the 1.5T engine from the Chang’an Eado sedan and are preparing to mate it to an 8 speed gearbox, the final product should hit the market later this year. The new SUV is expected to be using an 8 speed gearbox developed by Shengrui in Shandong province, the unit hasn’t yet hit the market but is expected to be hitting Chinese cars soon.

The Lavida has already been a big seller for SH-VW since its introduction in 2009, the model uses the same 1.4TSI engine as the China market Golf and also the same naturally aspirated 1.6L engine as well as dual clutch gearbox. The Lavida was developed in house by Shanghai-Volkswagen, the Bora was also redeveloped by FAW-VW as a reaction to both demands from VW’s Chinese partners for new compact cars to engage the lower end of the Chinese market. The Chinese automotive media also seem to like the Lavida, although many reviews have noted that the interior and some of the work is not as high as other VW models. The VW hatch is supposedly readying to launch in 2013, VW’s own production schedule indicates that the Lavida hatch will take up a small percentage of production volume with the sedan continuing to be the big daddy for the SH-VW production lines.

The 600BHP SUV will only see sales of 30-40 units worldwide this year, with early sales of 4 units in China it seems that the company maybe on the right track.

First of all you have the mark 2 from 1984 which is the ultimate heir to the Jetta nameplate, later FAW-VW introduced the modern mk4 version which Euro’s called the Bora and Chinese did too, although China got a Bora R version which used the then mk 4 GTI’s engine. A sort of mk4.5 version wheeled out of FAW-VW with a facelift, the outgoing mk4 Golf also became the Bora hatchback as well. Later the mk 5 version arrived on Chinese shores, except this was called the Sagitar. The Sagitar was a hit from the get-go, thousands of units were sold each month, Chinese consumers loved the Sagitar and it quickly became the compact sedan to own, especially when compared with the then Ford Focus and its out of date tech. The Sixth Gen was wheeled into China in early 2012 with sales beginning a few months ago, with 1.4TSI, 1.6L and 1.8TSI engines mated to a mixture of 5 speed manual and 7 speed dual clutch gearboxes.

Now the Jetta NF is being readied for end of year production, at least according to reports. Chinese media are reporting that the NF stands for ‘Nachfolger’ which apparently means ‘Successor’ in the German language, but being bound by just two languages I have no idea. According to documents leaked to the internet, the NF project was kick started back in 2008 and final design was completed in Nov 2011 and road testing starting just after, March 2012 saw the start of small scale production. Further documentation indicates that production will happen in two factories at the same time, firstly production will begin in Changchun in Sept and production starting again in Chengdu in early 2013. Monthly production is expected to hit 11,000 units per month from March 2013. Early sales are expected to be as low as 50,000 in 2012 but by 2019 FAW-VW have a sales goal of 350,000 units per year, presumably when all the mk 2 Jetta taxis currently in circulation need replacing.

The NF is expected to sit on the current Polo platform which will be of course shared with the Skoda Rapide when that also sees production later this year. We can guess that engine power will also be the same as the current Polo, thus 1.6L engines will likely be the core power plants, although a smaller 1.4L cannot be written off yet!

The A3 comes with 1.6L and 1.8L engines with manual and automatic gearboxes available, a 1.3 supercharged car was once in the works but no news about this model has surfaced recently. The above pictures show that the A3 is undergoing a nip and tuck, possibly to bring the A3 into line with a new corporate face from Chery. Chery is one company that seems to have multiple design themes running through its expansive model line up, hopefully sometime in 2012/13 we will seen the range become more coherent.

Fiat also announced the cars name: 菲翔 (Fei Xiang). Now the Chinese press are taking a lot of interesting the Viaggo (菲翔) ahead of its launch, the most recent reports indicate the Viaggo will hit the market in September this year with one confirmed engine: a 1.4T, although naturally aspirated units are expected to follow.

Selling the Fei Xiang under any other brand wouldn’t be a problem, but Fiat suffers from some brand damage after its pull out of the Chinese market in 2006 after the collapse of the Nanjing-Fiat joint venture where Nanjing Auto were blamed for putting too much effort into their then new MG project, and Nanjing taking flack due to its lack of investment in new models for the Chinese market. Fiat has much work to do in rebuilding consumer confidence in the Fiat brand, the Fei Xiang is the perfect step forward but the model does have strong competition. The VW Sagitar and Ford Focus are both strong models in this segment and hold some sway over the market, hopefully the Fiat Viaggio will be enough to establish a beach head before the introduction of more models.

Suddenly the novelty of having a full size truck and not being able to drive down the city’s main strip showing off your man toy evaporated. Gray market distributors had full size trucks on their hands and no where to sell them to, what’s the point in sitting in traffic guzzling down 9RMB per litre fuel in your 6.7L truck if no one can see you?

One GMC dealer in Shanghai has come up with a novel solution to the above problem: Give away the fuel. Every buyer of a GMC Denali truck will receive 5,000KG of 97# fuel for free. The Denali is priced in at 850,000RMB ($134,000USD) in Shanghai, but more like $50,000USD back in the US of A. So why announce 5 tons? 5 tons of fuel works out to be about 50,000RMB’s worth of fuel, but gathers better headlines than a 50,000RMB discount.

Volvo’s Chinese owner offered to take a large minority stake in the Japanese maker of Subaru cars, an offer – never accepted – that illustrates its ambition to expand business in China and around the world and gain more technology to improve its own cars.

Two sources with direct knowledge of the matter said Zhejiang Geely Holding Group offered to buy a stake of about 20 per cent in Japan’s Fuji Heavy Industries late last year through an investment banking intermediary.

If the bid had been successful, it could have paved the way for a joint-venture company in China to produce Subarus which currently have to be brought in from abroad.

China has been the world’s biggest auto market by volume since 2009.

By taking over Volvo and now possibly another foreign brand, Geely wants not only to expand its business around the world quickly but use their technology and auto design and manufacturing expertise to improve its own-branded cars.

Whether Geely can be successful in that endeavour also has broader implications for corporate China’s global expansion.

Chinese companies have poured tens of billions of dollars into foreign acquisitions in recent years – much of it into resources businesses – but they have had little success digesting and managing major consumer brands.

Geely’s interest in Fuji Heavy ‘sounds like a good strategy’, said Mr Yale Zhang, head of Shanghai-based consulting firm Automotive Foresight.

Volvo is a premium brand and Geely’s own brands in China are all affordable low-end brands.

‘Fuji Heavy could have filled the gap in the middle of product offerings Geely has,’ Mr Zhang said.

A 20 per cent stake would have made the Hangzhou-based automaker the biggest shareholder in Fuji, ahead of Toyota Motor, which currently has a 16.5 per cent stake.

The sources said Fuji Heavy never responded to the offer.

Mr Kenta Matsumoto, a Tokyo-based spokesman for Fuji Heavy, said he was not aware of an acquisition offer from Geely.

A Geely spokesman declined to comment.

Fuji Heavy, known for its all-wheel-drive technology, had applied for a joint venture to produce cars in China with Chery Automobile, one of the country’s few remaining major automakers with no foreign partner.

China requires foreign automakers to partner a local company with a stake of up to 50 per cent to build cars in the country for local consumption.

Beijing objected to the move since it viewed Toyota Motor, Japan’s top automaker, as effectively controlling Fuji Heavy and pointed out that Toyota already has two local Chinese partners – the maximum number of joint ventures allowed for a foreign auto maker to operate in China.

Chery earlier this year announced that it picked Jaguar Land Rover, a unit of Indian group Tata Motors, as a possible joint-venture partner.

On Tuesday, Fuji Heavy executives said in Tokyo the company no longer expected to be able to start local vehicle production in China during a five-year growth plan that runs until March 2016, and lowered its global sales target for the final year by 50,000 vehicles.

Geely’s offer, according to the knowledgeable individuals, was aimed at overtaking Toyota as the largest shareholder in Fuji Heavy, making it possible for the Chinese government to give the necessary blessing for Geely and Fuji Heavy to form a China joint venture.

Geely founder and chairman Li Shufu, who is also Volvo chairman, was willing to reduce Geely’s stake in Fuji Heavy once the joint venture was approved, the individuals said.

It was not immediately clear whether Geely had talked to Toyota before extending the acquisition offer to Fuji Heavy.

So what has been changed for 2012 and 2013? Honda seems to have realized that Chinese consumers like chrome and has added hearty lashings of the silver stuff to both the front and rear. The headlights have gained chrome on their inside strips close the central grill, and the tail lights have gone to a translucent design.

Engine power remains the same with the base 2.0L, mid 2.5L and range topping 3.0L V6 being deleted from the old Accord when the new Accord turns up on the scene.

 1. Chinese Brands Show Originality, Begin to Shine

Originality is not just limited to mature auto manufacturers, two Chinese manufacturers in particular, Chery and BYD showed tremendous amounts of originality that was worthy of world auto manufacturers, these two companies seem to be singlehandedly giving consumers greater confidence in Chinese automotive products

BYD unveiled its BYD F3 Plus, the world’s first mass produced remote controlled car. Wang Chuan Fu was on hand at 11:30am on Monday 23^rd April to give a first hand demonstration of the cars capabilities, the charismatic CEO took to the stage to drive the F3 Plus around via its key to an impressed audience. The F3 Plus allows the driver to drive the car within a 20 meter radius using the remote control key, the smart key also allows for remote operation of the air conditioning unit, remote start and of course the remote driving capability. This technology allows the driver to park in tight spaces without being in the car, or as BYD are keen to point out it allows for owners to bring their car to the front door in case of inclement weather.  Under remote control use the cars speed is limited to just 2km/h so it is unlikely that there will be a rash of BYD drivers plowing their cars into walls in the near future.  BYD have hit a major home run with the introduction of this technology which is relatively cheap to introduce and gathers media attention the world over. The F3 Plus represents BYD’s turn and maturation as a car company, it has moved from being a low cost manufacturer to a high end manufacturer with a focus on merging its technological abilities with its car making ability, this is shown via its new slogan: Technology, Quality, Responsibility.

Many Chinese companies are capable of producing headline inducing concept cars, but none of them can do it quite as well as Chery. Chery @Ant concept brings in new driving ideals as well as new business models at the same time.

The @Ant concept can be divided into pure electric powered version and inner combustion engine powered version. The information like car positioning, planned route, battery state of charge, remained petrol of every Ant are uploaded to the Cloud network and shared with other Ants. When an electric powered Ant runs out of battery, an ICE powered Ant nearby will come to charge it. When an Ant is charged by another, the electric Ant’s real wheels and ICE Ant’s front wheels are fixed each other so that they can run together. When the charging finished, the two Ants separate and go away respectively.

2. Chinese Brands Go Up Market

Chinese domestic brands have always been content with being priced at less than 150,000RMB, basically the low end of the Chinese market, joint venture manufacturers comfortably filled this segment with their international designs and brands. Very seldom would you see a successful Chinese car priced above 150,000RMB, perhaps only Roewe has been able to achieve this. Chinese manufacturers seemed to have finally realized that profit returns on cheaper cars are not quite what they are on more expensive up market models, the Beijing Auto Show played host to a several manufacturers who were aiming to take on the international manufacturers at their own game.

Fleet sales are the name of the game for Chinese manufacturers after the central government announced that it will aim to make all of its future purchases Chinese models. FAW and SAIC pulled their big guns out, the Roewe 950 launched in Beijing along with FAW’s Besturn B90, both manufacturers are hoping to take away market share from the likes of the Passat and Accord from government sales. The B90 is based on the current Mazda6 platform with a choice of 2.0L and 2.5L engines with prices expected to be from 150,000rmb and rising it seems that it will be a strong choice for government ministers at all levels. Likewise the 950 shares its platforms with the Buick Lacrosse, with engines ranging from 2.0L, 2.4L and 3.0L, pricing is from 189,900RMB.

FAW also kick started their floundering Hong Qi (Red Flag) brand with the introduction of the H7, L7 and L9. The H7 is being aimed at provincial level Ministers whilst Central Government Ministers will be tackling the L7 and L9 (the L9 being a stretched version of the L7). The Hong Qi H7 uses a 2.0L Turbo, 2.5L and 3.0L engines which puts it directly against the Audi A6 in the Government procurement catalogue, if the A6 is included in the future that is. The L7 carries FAW’s own self developed V12 engine, pricing is expected to be well into the millions when it is finally launched, but sales are expected to be minimal but it is still a flag for the Chinese auto industry.

Beijing Auto were in their element with the show being held in their own back yard, BAC launched four mid to high range cars based on their acquisitions from Saab in late 2010. The C50e rides on top of the Saab 93 platform but does not have any Saab styling, a compact sized vehicle which is ready to take on the market with its sporty stance and reasonably powerful engines. The C60F uses the same platform as  the C50e but is obviously larger.  The C70G uses the Saab 95 platform and is much larger again, the C70G is similar in size to the current Honda Accord and will likely become a major competitor to FAW’s Besturn B90 and Roewe’s 950.  Beijing Auto also launched its electric variants, the C70GB which is the electric version of the C70 will launch in early 2013.

The C90L concept was also unveiled, Beijing Auto possibly based this model on the outgoing Mercedes E-Class platform and will be chasing potential Audi A6 customers when it launches. In addition to the C90L concept, Beijing Auto also had a C51X concept SUV on show which furthered the idea that Beijing Auto are not settling on being an average auto maker – they are aiming to be the best automaker in China.

Chang-an launched their first B segment car at the show, the Raeton. The Raeton will carry 1.8T and 2.0T engines when it launches in the middle of this year, pricing is expected to be from 120,000RMB to 160,000RMB when it hits the market.

Greatwall launched their first high end SUV, the H7. The H7 is built on the back of the popular H6 SUV and has included several of the H6’s more popular aspects. Pricing of the H7 is not expected to be cheap, a price of around 170,000RMB is expected, however this is still much cheaper than the equivalent Honda CRV or other joint venture compact SUV’s

At the 2011 Shanghai Auto Show Brilliance unveiled its ‘Brilliance II’ Concept, the same concept was on show at this years Beijing Auto Show but with some slight differences. The Brilliance II has a wheelbase of 2.9  meters which puts it in the C segment, but considering the strength of the Brilliance brand and also technological strengths this car is likely to be a B segment vehicle. When the vehicle finally launches, it is expected to be sub 200,000RMB

Haima showed off its ‘Yao’ concept which is the first glimpse of a new compact sedan that the company are producing. The new sedan has been codenamed ZM2 and is currently undergoing testing. The real world production version is expected to use a 1.8T engine coupled with a six speed automatic gearbox.

3. Sub Brands Slow Down

The opening of China’s doors to foreign automotive manufacturers was based on the idea of ‘Market Access for Technology’ this concept was initially very successful but over time it has been shown that foreign manufacturers are more successful in the Chinese market and have taken the lion’s share of the market with more than 70% market share. The introduction of sub brands by manufactures was a way to placate the Chinese government and rubber stamp their expansion plans, by providing core technology to their JV partners they would also be able to build up confidence in their partnership, and earn royalties from IPR that they wouldn’t use anymore.

The first joint venture sub brand appeared at the Beijing Auto Show in 2008. The Everus SUV was shown for the first time in Beijing and gained many admirers in a short time, however it was just a concept. The reality for the Everus brand was a rebranded, last generation Honda City. Soon after the Everus’ debut, GM launched the Baojun brand, Venucia came from Nissan, Ciimo came via Dongfeng-Honda and Shou Wang from Beijing Hyundai.

Everus did not have much foot traffic at the Beijing Auto Show, probably due to their sole car being the S1 which is already on the market. The Everus S1 has not performed overly well since taking to the market and pulls in around 3,000 sales per month. The Dongfeng-Honda sub brand, Ciimo, did not bring in a great deal of traffic either. Based on the last generation Honda Civic with a slight upgrade the Ciimo is hardly an eye pleasure.

The Baojun 630 is the star of the sub brand phenomenon, the compact sedan is based on the Buick Excelle platform, however you cannot see a hint of the Excelle in the new car. The Beijing Auto Show did not reveal anything new from Baojun, although a hatchback version is supposedly in the works.

Venucialaunched their D50 at the Beijing Auto Show, the D50 is based on the Tiida sedan that has since gone out of production at Dongfneg-Nissan. The Venucia badge was also applied to the Nissan Leaf which was unveiled at the show, there are no structural or design changes to the car other than the badge itself.

Beijing-Hyundai’s Sino-Korean baby, Shou Wang, was first unveiled at the Guangzhou Auto Show in late 2011 but with only a glimpse of the front of the car. The Beijing Auto Show played host to the entire cars unveiling, the new concept is codenamed BHCD-1, making it the only full concept for a sub brand at the Beijing Auto Show.

Although there has been much rumor of VW’s own sub brands with its partners, the long rumored FAW-VW Kali and Shanghai-VW Tantus brands were not on show.

Sub brands have become blatant ‘recyling bins’ for joint venture products with out of production vehicles reappearing under new brands with less features than they previously had. One industry insides told us: “JV vehicles don’t go out of production, so sub brands never have ‘new’ vehicles”. The slow down of sub brand mania is very obvious, either sub brand’s are preparing for an all out assault on the market with new ideas, new concepts, and ultimately new vehicles, or manufacturers have quickly realized there is not that much interest in sub brands from joint venture companies.

4. Range Extenders Now the Way Forward

All manufacturers are switching onto green vehicles, only some manufacturers are putting their promises into production however. Range Extended Electric Vehicles (REEV) were the talk of the show.

The REEV idea first went into mass production with the introduction of the Chevrolet Volt, the Volt’s internal combustion engine kicks into play only to extend the range of the batteries, which allow for a 60km range on battery power alone but when low on juice the engine starts an alternator to provide a recharging service for the batteries. REEV’s haven’t caught on like plug-in hybrid vehicles have, but at this years Beijing Auto Show several REEV’s were on display. The Volt, BYD Qin, Chery’sRiich M1, Brilliance H530, JAC He Rui, Suzuki Swift, GAC Trumpchi, and Beijing’ E150 were showing their range extender technology. At the same time, several manufacturers were keen to show their plug in hybrid vehicles, the BMW i8, Toyota NS4, Audi A3 e-Tronetc were all on show.

REEV technology for Chinese manufacturers may not be at a mature stage yet, but along with plug-in hybrid vehicles, both are expected to become important projects in the short term for Chinese manufacturers. REEV’s require high end technology which maybe difficult for Chinese manufacturers to assemble in the short term, high quality batteries, motors, ECU, BMS and also a high efficiency engine – are Chinese manufacturers able to rise to the cause?

5. Second Hand Car Sales On the Up

For a long time the Chinese second hand car market was a topic that was not discussed – for reasons unknown, Chinese consumers shied away from second hand purchases given that there is no central car history resource as of yet in China. Some manufacturers have entered into the game early with both BMW, Audi, Honda, and Mercedes being on hand to show their second hand products. In 2011 the Chinese second hand car market grew by 12%, out stripping the new car market by a long margin. If big name manufacturers such as BMW and Audi are willing to enter the second hand car market, then it is obvious that they have plenty of confidence in the market and the potential for money making. Currently the Chinese second hand market is full of middle men and agents that flip cars fast, a change in the market is needed if growth is to continue. According to one BMW representative, BMW cannot get enough second hand BMW’s and are actively encouraging current BMW owners to trade their car in for a newer model.

The growth of the second hand market is likely to pose another threat to Chinese manufacturers as they up their game and attempt to take on established joint venture manufacturers. Why buy the a 200,000RMB Chinese car when you can have a second hand BMW or Audi for the same price?

Article written by Gong Zai Yan in Chinese, translated by Ash Sutcliffe.

Sales of the new Focus reached 9,400 units in the first month of being on sale boosting Ford’s April sales to 54,881 units. The new Focus is priced from 119,000RMB to 169,000RMB in China which makes it highly competitive with its rivals. Ford has been on aggressive China expansion plan over the past few months with the company announcing several rounds of expansion, the most recent being the addition of a new plant in the Hangzhou area which will boost Ford’s China capacity to 1 million vehicles per year. Product wise, Ford also announced the addition of four new SUV’s for the Chinese market, including the Ford Kuga and also the Focus ST performance hatchback.

Passenger car sales jumped in year on year comparison but that large 12.5 leap is being blamed on the slow production in April 2011 due to the Japanese earthquake and tsunami which devastated the automotive industry in Japan in March 2011. Growth may have been over 30% in previous years, but growth in 2012 has slowed to just 2% in the first quarter of 2012.

Although passenger cars, a loose term indicating sedans and hatchbacks, were down by as much as 9% sales of SUV’s were up 34% in April and showed growth of 22% in the first quarter, showing that there is still a great deal of mileage in certain segments despite the high gas prices.

Mitsubishi is trying to keep a happy house with both SouEast and Guangzhou Auto as partners the Japanese company is walking a thin line, Mitsubishi is now allowing SouEast to introduce more imported Mitsubishi models to its line up in China. SouEast will also introduce a new Mitsubishi model into China this year, the Colt Plus has long been rumored to be seeing production at SouEast, but a 1.6L Lancer is likely to come first.

The next step is of course to produce a model locally, the 3008 will be the first SUV from PSA to be produced in China. The SUV will be produced by the PSA-Dongfeng joint venture partnership and will see the launch of a facelifted 3008 later this year. The 3008 was originally imported into China, but import taxes made costs high and consumers went elsewhere for their SUV needs. A local price with a design style that is closer to Chinese tastes will likely make for an improved sales formula.

Engine power will come from the Peugeot 508, meaning 2.0L and 2.4L four cylinder engines. Pricing is going to be a hard one, it’s obviously bigger than the Qashqai but smaller than the best selling CRV – perhaps somewhere in the 180,000RMB to 240,000RMB when launched.

The Chinese automotive media are excited, they are an easily excitable bunch, but this time the prospect of a BMW X7 has really riled them up. The BMW X6 is a popular SUV in the Chinese market, the squashed looking all wheel drive vehicle has become a popular model for those that wish to show their wealth and power. The current X6 costs well in excess of 1 million RMB prior to insurance and sales taxes, an X7 is likely to be in the 2 million RMB range when it hits the market in 2013 or beyond.The X7 is unlikely to see Chinese production, as cars priced more than 700,000 rarely see local production with consumers actively preferring to pay the premium to drive an imported car.

This years forum once again brings international auto industry leaders together in Chengdu, significant speakers have been added to the speakers list this year, with senior leaders from China’s leading automotive companies as well as international leaders in attendance. Governmental departments from Chinese and overseas governments will also be represented at the forum. The Global Auto Forum has not yet released the final speakers list, but it is expected to include several ‘big names‘. The forum covers the following topics:

• The future of automotive technology
• Export strategies for Chinese makers, include mergers and acquisitions
• Brand strategy and innovation in marketing
• The Chinese commercial vehicle industry
• Auto financing and the services sector
• The short, medium and long term outlook for the Chinese auto industry landscape
• How Chinese and Indian component makers are changing the global automotive scene
• The path to a greener future
• Design strategy and product positioning
• Regulatory developments
• Co-operation for a better future

Furthermore, the organizers of the Global Auto Forum are offering media visitors the possibility of free travel to and from the forum from their home country.

FAW were the first Chinese brand to get into the high end car business, they produced the Red Flag brand which went onto become of China’s best known car brands, later the the Besturn brand emerged based on Mazda technology. Dongfeng are hoping to imitate the relationship between FAW and Mazda with the introduction of their own mid to high range brand based on PSA’s technology, according to reports Dongfeng will use the Peugeot 508 and Citroen C5 platform to develop a new sedan for the Chinese market, with an obvious aim of taking on the government procurement books.

Information on the Dongfeng 1 model is limited, but the car will carry 2.0L, 2.4L and a 1.8T engine. With the resurrection of the Beijing and Shanghai brands for government buyers, Dongfeng is obviously very keen to enter the segment as well. Other information on the car is not yet available, but we will keep you updated as the project develops.

Although Beijing is the capital city and the heart of Chinese government as well as a cultural heavy hitter, it’s clearly woefully unprepared for international automotive events that bring the brightest and the best to Beijing for one whole week. The original Beijing Auto Show was held in a relatively small media hall in the heart of Beijing, but in 2008 the auto show moved to a brand new, all improved center on the outskirts of Beijing, the new hall is strategically close to the airport and with plenty of road access from every direction. The new center is made up of 4 halls (actually five, if you include the shed that VAG was placed in along with the brands it owns) based on a winged design, E1 to E4 down one side, W1 to W5 down the other, all are interconnected by an open air courtyard. 230,000 square meters of space devoted to an auto show – sounds great on paper. The reality is a harsh difference.

First and foremost, let’s talk about getting to the hall on the Monday morning, the first media day. It seemed as if everyone in Beijing had managed to receive a media pass, the wide boulevard avenues around the auto show had turned into parking lots. Our driver gave up, turned his engine off and got out for a cigarette whilst waiting for a movement in traffic, when one came he simply wheeled his Jetta taxi forward a meter or so. One journalist who came with a major manufacturer told me that they were advised to leave the bus in traffic and walk 30 minutes to the hall, not great news if you’ve just got off a 12 hour flight from Europe or the USA the day before. There was a police presence on the road directing traffic that day, but as per usual they were doing more damage to the natural flow of traffic than helping it. Leaving the show at the end of the day also turned out to be a nightmare, taxi drivers were overly eager to forget that they are bound by their company rules to run with the meter, instead they wanted to charge a flat fee of 100RMB per person (or more) to go back to the city center. Tuesday saw torrential rainstorms hit the auto show, traffic was yet again a nightmare. One journalist mentioned that it was his first, and last, time to visit the Beijing Auto Show and he would never do it again. Those that took the recently connected No 10 Subway had an easier time getting to the show, but for those that stayed in hotels close to the exhibition center, traffic was a serious issue.

The exhibition center toilets deserve a paragraph to themselves, mostly due to the rarity of them, if the toilets were animals, you can bet that WWF would be campaigning for them. The Shanghai Exhibition Center has more toilets than visitors, the Beijing Exhibition Center seems to work on a ‘less is more’ concept and tried to install as few toilets as possible, queues for bathroom facilities were stretching out of the doors on media day, God forbid you had to visit them on public days, I presume by the time you get to the pot the show would have been over. Furthermore, some bathroom stalls did not have doors, so you got to see a little bit more of China than you bargained for, who knew it was possible to smoke, defecate, and talk on the mobile phone all at once? Truly amazing, I can usually only concentrate on one task at once.

If you had an appetite for food after visiting the bathrooms, you were really stuck for choice. Either Subway, McDonald’s, or Chinese fastfood. Subway had a 15-30 minute wait, same for McDonald’s, Chinese fast food lived up to its promise of being fast and cheap, but only if you could find somewhere to sit and eat. The central courtyard mentioned above became the mean eatery on the Monday, but by Tuesday it was a washout, you saw executives, booth girls and cleaners alike taking to sitting on the floor to eat their fast food.

The organizers have obviously had some trouble trying to squash so many manufacturers into the halls this year, with more brands coming to China, and more brands emerging in China, there is always going to be a strong demand for hall space at the auto show, but the Beijing Exhibition Center is already too small for China’s biggest auto show. Despite the conditions, manufacturers put on their best faces and delivered one of the more memorable auto shows in recent memory. Chinese manufacturers have clearly matured from their crazy cloning days, it used to be that Western and Japanese Executives would tour the Chinese stands looking for hints of their own cars, now they tour the Chinese stands looking suitable worried at the level of technology and mature self developed designs coming out of the Middle Kingdom. Japanese auto executives were walking around the Hyundai stand looking somewhat agitated about Korean automotive efforts, it won’t be long before Chinese stands are receiving similar visitations.

Shanghai and Guangzhou Auto Shows remain the best in the Chinese automotive calendar. The Shanghai Exhibition Center is big enough to satisfy demand and is undergoing continued expansion with the addition of a north wing. The Guangzhou Auto Show is situated in the Pazhou Exhibition Center, home of the World’s Biggest Trade Fair, the Canton Fair, so capacity is never going to be an issue for either shows, neither is transportation with both being connected by quick and convenient subways, taxis and buses – also with ample parking for those that wish to drive themselves there.

Will I visit the 2014 Beijing Auto Show? If no improvement has been made to the facilities and surrounding traffic, you can bet that I will be avoiding at all costs. 800,000 visited the Beijing Auto Show last week, how many came away with a positive experience of the center?

Alice will be running public relations activities for Bentley China from Beijing. In her previous role at Ferrari Maserati China she was responsible for PR and  Alice also has experience as a broadcast journalist from her time at Shanghai TV and also TVB in Hong Kong.

 Bentley’s global sales for Q1 in 2012 increased by 46.6% with 1,759 cars delivered to customers. This growth was led by the emergence of China as Bentley’s largest market in the first quarter with sales in the region up 84.9% (578 cars delivered).

The C70 series of cars were unveiled at the Beijing Auto Show and are bound to be major hits when the 2.0T powered cars start to hit the production lines and dealerships towards the end of the year.

Reports say that it will be an import sold via GZ-Toyota, but realistically if sales take off we can see the Venza becoming a locally produced vehicle, the Highlander was originally sold as an import but was quickly introduced to Chinese production lines to keep up with demand for the large SUV.

When launched the Encore isn’t going to be taking on the well established CRV, instead its likely to be aimed at the Nissan Qashqai and Hyundai IX35, both models have proven to be big hits in the Chinese market.

Toyota is reporting that its sales were boosted by 68% in year on year comparison with April 2012 figures reaching 81,700 units. First quarter sales for Toyota are now at 293,200 units from Jan to April with an increase of 14.3% over 2011′s figures. Sales slumped in early 2011 due to the massive earthquake in Japan that severely effected parts production in Japan.

Toyota’s total sales for 2011 were at 883,000 vehicles, an increase of just 4.4% over 2010. Toyota is aiming for sales of 1 million units in China this year, which they will have to achieve growth of 13% to achieve.

The rumor mill is currently issuing news of a forthcoming Volvo S60L that will be produced in Chengdu at the years end. Volvo are aiming to produce an estimated 200,000 cars per year at the new Chengdu facility. The XC60 is also expected to go into production at the same time, giving Volvo two strong cars on which to base its China plans as both stretched cars and SUV’s are in big demand. The S60 is already available in China as an import, the S60 is produced in Holland and its import status makes it relatively expensive at 280,000RMB and rising for the 1.6T version, the 2.0T is 300,000RMB and rising.

Volvo already produces the S80L in China via the Chang’an-Volvo tie up, sales of the S80L have been minimal and it hasn’t been able to make a dent in the market that is controlled by the Audi A6L, BMW 5L and E-Class L.

The Focus Classic launched today with a price tag starting from just 99,800RMB for the base 1.8L manual model rising to 123,800RMB for the top of the line 1.8L automatic. Just four models are available, four for the hatchback and four the sedan, the Focus Sports has been struck from the line up as has the 2.0L model.

The Chinese car market is the world’s biggest, not that we need a reminder, it’s also a big market with lots of demand for certain models. X5, Q7′s etc etc have a long waiting list in China but in the USA there is no such need to wait as dealers often have a surplus of cars, market demands mean that these cars often end up in China via the gray market. Other slightly more unique vehicles, such as a Hummer H1 also end up in China, as do Dodge Chargers, Challengers, and GT40′s.

West Coast Customs brought their Darth Vader Passat to China. I cant imagine the leagues of Chinese middle management business men would want to buy this for their daily commute, but at least its different. Kind of.

Buick brought their Excelle XT 1.6T hatch along. The 1.6T had been modified slightly, the 184bhp unit had been upgraded to a GTI equal of 200bhp. Nice.

It wouldn’t be an auto show without an old Hong Qi. The guys at Shanghai Auto Museum had wheeled out their Hong Qi and Caddy for the show:

Korea’s Spirra brought their wares too:

Chrome and Gold Plated cars are still very much in fashion, if you’re a Corvette or Aston Martin fan, turn away now:

Want some American Muscle? The gray market delivers anything you want, for a hefty fee of course.

And War Winning American Muscle:

With just one hall open, and no modified autos on display, it seems that the SIMA event has a long way to go before it becomes the auto show for modified autos – or even an auto show, now it is more of a collection of cars that might be for sale – the majority of the staff on the BMW stand were having a good sleep on the sofas.

From the Bangkok Post

SAIC Motor, China’s biggest automaker, is planning a venture with CP Group to build passenger cars in Thailand.

SAIC intends to develop the new assembly plant as a production centre for right-hand-drive vehicles to sell in the region and in other markets that drive on the right.

The partners will complete the feasibility study for the project by the fourth quarter this year, said CP vice-chairman Thanakorn Seriburi.

“The study will include the cost of investment for making at least 50,000 passenger cars a year,” he said yesterday.

SAIC executives raised the investment projects with Prime Minister Yingluck Shinawatra during her official visit to China last month.

Chinese representatives were in Bangkok this week to discuss investment incentives with the Board of Investment.

The Shanghai-based automaker has led the Chinese market with production of 4 million units a year.

“The entry of the company would mean not only Chinese investment in the assembly plant, but also in auto parts,” Mr Thanakorn said.

He expects the Chinese carmaker to introduce the well-known MG series to the Thai car market, or perhaps use the country as a base to assemble modified MGs and Rovers _ historic brands obtained from the bankrupt MG Rover Group after a Chinese takeover in 2006.

The two partners are no strangers, with ties that began with a joint venture in 1984 to make motorcycles on the mainland for domestic and export sales.

Mr Thanakorn noted that CP has a plant in Luoyang, China, with capacity to make 1.6 million Dayang-brand motorcycles a year for sale locally.

CP is also studying a plan to make motorcycles in Thailand, hoping to capitalise on the big local market with its 2 million units sold last year.

Mr Thanakorn said the group remains upbeat on expansion in China, with a 20-billion-baht project called Chia Tai International Plaza under construction that is expected to be finished in the next four years.

Chinese media are still reporting that the XTS will be imported first into China with the option of a 3.6L V6 engine making 300bhp, although the locally made version is likely to see the introduction of the 2.0T that is currently installed in the Chinese made SLS.

The Chang’an Eado has been enjoying good sales numbers, quickly climbing through the rankings. 1,000 were sold in March ’12, up some 390% compared to February.

The hatchback is expected to get the same 1.6L, 123hp and 160 N·m “Blue Core” engine that powers the sedan version. The transmission options for the sedan are a 5MT or 4AT.

However, a new 1.5 turbocharged engine and a six-speed automatic transmission are expected to be available when the hatchback gets listed next year.

Chang'an Eado Sedan

But the company’s new midsize is full of promise. With an adequate powertrain, decent interior room and pretty good interior quality, it could make a dent in the midsize segment if it’s priced right.

Externally, it’s a fairly bland design compared to the Eado and the CS35, or even its original concept version. But it’s nothing offensive or too derivative, or at least not too dissimilar from midsizes nowadays, all so remarkably conservative.

With a 2820mm wheelbase and 4900mm long, it’s similar in size to Chinese competitors like the BYD G6 and the Geely Emgrand EC8. It will also be the largest car offered by Chang’an under their own brand.

The biggest surprise comes in the interior. It’s not just the leather and fake wood that catches the eye, but great attention to the detail and good overall design.

It looks like Chang’an squeezed every millimeter available, giving the Raeton generous interior room, especially in the rear seats. Even the passenger in the middle gets decent room.

It’s powered by an 1.8 turbocharged engine, with maximum power of 174 hp at 5000-5500rpm and peak torque of 240Nm at 1850-4800rpm. The engine is matched to a six-speed tiptronic transmission and it’s capable of reaching 210 km/h.

The Raeton offers an attractive package. But ultimately, its success will hinge on the price. The Chinese consumer is still wary of local brands, but cars like the BYD G6 and Emgrand EC8 prove local brands can also have a share of the midsize pie.

Its design is an interesting departure from Brilliance’s previous designs, which bear some resemblance to their partner BMW’s.

The H230 is powered by a 1.5L, peaking at 104 horsepower and 141 N•m torque. It’s to be paired with 5-speed manual or a 6-speed AMT automated transmission.

According to Brilliance, the car will hit the market in August of this year. Prices start at around 60,000 yuan (9,500 USD).

[via: Autohome]

In January of 2011, Geely’s Emgrand EC7 scored 46.8 points and five stars in C-NCAP’s crash tests, the highest score by a local brand back then. Later that year, the Emgrand EC8 would break that record. With a score of 49.8 points, it became the 6th highest score overall out of 147 cars tested and edged many cars built by foreign JVs.

For those who dismiss C-NCAP’s results, there is Euro NCAP. In November of 2011, Geely’s Emgrand EC7 became the first Chinese car to attain a respectable four-star safety rating in Euro NCAP (although it was only the second Chinese car tested by the organization). At the time, Euro NCAP’s Secretary General Michiel van Ratingen said:

“These results mark a milestone for the Chinese automotive industry. It is a clear sign that Chinese car makers are building on recent experiences and rapidly investing in better vehicle safety. Even with the upcoming increased demands, five stars are expected to be within reach soon.”

To demonstrate this change in design philosophy, Geely brought to Beijing cars resembling dissected or exploded models showing their safety features. Safety, according to the brand, is now part of their DNA.

This sounds a lot like Volvo’s philosophy. The Swedish automaker, now owned by Geely, has a long history of meticulous, safety-minded engineering. But to remind those out there, the EC7 was a project started prior to the Volvo acquisition.

A thumbs up to Geely for their efforts, and here’s to hoping all Chinese brands start thinking like them.

The crossover’s dimensions are 4160 × 1810 × 1670mm (L × W × H), and a 2560mm wheelbase. That’s relatively small: it’s about 155mm shorter than the Nissan Qashqai. But on the inside it’s actually pretty roomy.

The CS35 had 215/50 R17 tires in Beijing. Hopefully the 17 inch wheels will stay in the production version. No more tiny wheels in big cars, please.

The interior is also a pleasant surprise, showing good workmanship and materials quality. This interior is easily better than all of Changan’s current offerings.

On the equipment side though, it’s a bit lacking. The multifunction steering wheel, and USB and auxiliary inputs are becoming more of a standard; although a sunroof is available.

Powering this urban SUV is a 1.6L “BlueCore” engine, capable of 160 horsepower. This will be mated with a five-speed manual or four-speed automatic transmission. An 1.5 turbocharged engine is also on the horizon.

All in all, the CS35 is a commendable effort from Chang’an. It’s expected to hit the market soon, priced at around 90,000 RMB (about 14,300 USD).

[via: Autohome]