New automakers
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New automakers

New automakers

Emerging market automakers announced their intentions at the Frankfurt auto show, although their presence was low-key compared to European, Japanese and American giants.

As car sales stagnate in these three regions, manufacturers turned their attention to China, India and Russia, whose exhibitors were present at the show. China sent the largest delegation with 44 booths, including automakers as well as parts companies.

Two years ago, the Chinese timidly attended the exhibition, but this year everything has changed. However, for most Chinese car companies, exhibiting was "a matter of penetrating the European and American market," says Hartwig Hirtz, who imports cars to Germany for major Chinese brand Brilliance. It sold its first models this year and is awaiting European certification to enter 17 other markets in 2008 with annual sales of 15,000 units.

But getting started wasn't easy. In addition to accusations of copyright infringement, some Chinese cars have shown disastrous results in crash tests. “Maybe the Chinese haven't taken their European security commitments seriously enough,” says Hirtz.

For Elizabeth Young, president of Asie Auto, which imports Brilliance to France, China's short-term goal is to show they can do what the Europeans can do. “This is also important for the domestic market, which is very competitive and where customers still prefer European and American brands,” she says. "Within 10 years they want to be one of the biggest in the world."

India, meanwhile, was much more discreet, with no cars and just a few booths crammed in next to Czech exhibits that flew the green-white-orange national flag.

However, India has made some noise. Tata Motors is considering buying British luxury brands Jaguar and Land Rover, which could be sold by Ford. Another Indian group, Mahindra, has also been suggested as a possible bidder for the British companies.

As for the Russians, Lada remained their only brand represented, including the all-wheel drive model Niva.

The Lada first showed up in Frankfurt in 1970 and has done reasonably well in Europe, where it sold 25,000 cars last year. “We have a traditional clientele,” the spokesperson says. "It's a niche market."

It mostly appeals to those with less money, but it's a market in which Renault nonetheless had significant success with its Romanian-built Logan.

“We are invincible on this issue,” says Benoît Chambon, spokesman for AZ-Motors, which will import Shuanghuan cars to France.

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