Fri, March 12, 2010
Two Asian newcomers gained a foothold at the Geneva motor show this week, vowing to become a permanent fixture at the prestige European showcase where others have come and gone.
BYD (Build Your Dream) Autos of China, which specialises in thrifty mass produced family carriers, and small volume Malaysian luxury manufacturer Bufori, bear as much resemblance as chalk and cheese.
Both are nonethless hoping that their individual recipes will thrive where other emerging Asian newcomers, notably those from China, have failed in recent years.
"BYD is a feature of the Geneva show from now on," proclaimed a European executive, as his company announced a tie-up with German giant Daimler to develop an electric car for China.
One of its domestic rivals, Brilliance, has disappeared from Geneva since it became the first Chinese carmaker ever to display here in 2007 with ambitions of breaking into the European market within five years.
Indian industrial giant Tata's own brand has repeatedly professed long term optimism in the Swiss city and was on show here on Wednesday for the 12th year running.
But its much touted Nano, billed as the world's cheapest car, has yet to be put on sale in Europe and local ambitions ride for now on luxury British made Jaguar and Land Rover, which Tata bought in 2008.
"It won't really work for Tata I don't think," said Frank Schwope, an analyst for German bank NordLB.
"But the Chinese companies will have a much bigger role in the world. They're already big."
Shenzen-based BYD Auto, whose sales have boomed at home, has been making inroads into the emerging markets in Asia and the Middle East while it builds up a sales network in Europe and improves quality.
In Geneva it announced that sales of a hybrid saloon and its new all electric E6 people carrier would be rolled out in Europe over the coming two years.
BYD's tentative cooperation deal with Daimler, which is primarily aimed at the Chinese market, also involves exchanging vehicle-making nowhow with the German carmaker.
Although they often assemble vehicles for Japanese, US and European brands in China, previous attempts by Chinese firms to export their own cars have foundered on European technical and safety standards.
"If they want to go for an export strategy they've got to raise their game," said Colin Couchman, automotive analyst at Global Insight.
"There's no one obvious. They're in the early part of their learning curve," he added.
Bufori's approach is different, building on 24 years of making just a few dozen vehicles a year aimed resolutely at the luxury sector and a particular brand of classical styling.
Its new "Geneva" four-door saloon, an opulent mix of handstitched leather and high tech carbon fibre and Kevlar bodywork, even offers a built in Chinese tea set complete with a kettle.
"We are in a niche and our speciality is contemporary classic designs, there are not many manufacturers out there which offer this sort of mix," General Manager Felix Haller told AFP.
"It's true that in markets like Europe where heritage is strong we have to fight with a little bit of prejudice," added Haller, a German national.
"People think we went to Malaysia for low cost labour, it's not, it's for the workmanship."
The Malaysian carmaker said its new model would be tested under European standards.
"If you want to survive in this environment you need a car that has all the technologies that allow it to be compliant," Haller acknowledged.
Bufori is making its first appearance at the show, which opens to the public from March 4 to 14.
"It is expensive but it's definitely worth it. It's something our customers would expect because it's a luxury car," said Haller. "We have a voice here."
(Agencies)
