JDPower: China's car prices will hit the Brazilian market with low-priced models

According to Bloomberg News, consulting firm J. D. Jon Sederstrom, Director of Power & Associates Brazil's São Paulo division, pointed out recently that Chinese car companies are looking at impacting the Brazilian market with low-cost models and taking away shares that were formerly General Motors, Ford and Fiat.

Jon Sederstrom said: "Chinese car brands are growing faster than expected in the Brazilian market. Current users are indeed interested in low-cost new brands and models." As the world's fifth-largest car market, Brazil plays an important role in the overseas expansion plan for the Chinese auto industry. Jon Sederstrom believes that Chery Automobiles and JAC etc. are trying to retake the path of Hyundai-Kia, occupying emerging markets with low-cost models, and gradually evolving from low-end markets to global car companies.

Taking Chery QQ as an example, the price of an import-tax-inclusive model with air-conditioning, power steering, airbags, CD players, and electric windows is about R$23,990 (83,300 yuan), and the Brazilian market at the same level is simply installed. The version of the Volkswagen fourth-generation golf, Chevrolet Celta and Ford Ka models compared to about 1,000 to 7,300 yuan. J. D. A survey conducted by Power shows that Brazilian car consumers pay special attention to the price of vehicles, so Chinese low-cost vehicles can better meet the needs of local users. Andre Beer, vice president of General Motors Brazil, pointed out: "Chinese models have many cost advantages."

Due to the obvious contrast between cost and quality, the original market share of Japanese and US car companies in Brazil is gradually being eroded by Chinese car manufacturers. According to the Fenabrave data from the Brazilian Automobile Dealers Association, the proportion of Chinese car companies in the Brazilian market has increased from almost zero in April 2010 to 3.3% in August this year.