As of 2019, China has the largest automotive market in the world with 28 million cars sold in 2018 alone.
What are the main factors for the automotive industry growth in China?
- Urbanization and positive wages dynamics;
- Increasing economic activities and frenetic lifestyle;
- The growing availability of high quality cars;
- Constant updates in the automotive industry and the uprise of new energy vehicles.
How far can the automotive market in China grow?
However big now, China’s automotive market still has a lot of space for growth.
This is mainly due to the fact that only 17% of Chinese own a car. They are mainly the dwellers of the 1st and 2nd tier cities. That is to say, with the rise and development of the 3rd and 4th tier cities, there is an evergrowing demand in the automotive industry.
Is it true that China’s automotive industry is on the verge of slowing down?
Recently, China has been predicted to experience a significant slowdown in the automotive market growth. The reasons are as follows:
- Expansion of the used car market (unlike 10 years ago, Chinese people now consider buying a used car because used cars now can be both good and cheap and can act as a temporary solution).
- Restrictions on new car plates (for the reasons of environmental protection, the government is enforcing strict regulations on the process of obtaining a car plate).
- The rise of ride-sharing apps (China has around 550 million ride-sharing service users and finds it more convenient and rational).
However, these reasons cannot surpass the power of the abovementioned demand for cars and vehicles in the 3rd and 4th tier cities and the trend of buying new energy vehicles and technologically advanced automobiles.
What is the most common trend for the whole automotive industry in China?
With the entire country swiftly switching to the digital world and consumer behavior requesting a more savvy approach, the automotive industry is also going through a transitional phase of digitalization. This also derives from the common discontentment of Chinese buyers with a traditional car dealer experience.
How to get in touch with automotive businesses in China?
While the whole world accepts an approach of finding automotive companies to offer cooperation, in China B2B works in a completely different way.
Why is it useless for automotive factories to contact businesses in China?
- There are millions of unworthy calls per day for them because the competition is high;
- They mostly have their suppliers – if they need more they will search;
- They won’t consider you if they have never heard about you;
- For the same reason, they also will not search for any information about you.
What is the solution then? To make Them contact You.
How to attract Chinese clients from the automotive industry?
Generally speaking, starting a business in China in the automotive industry requires a lot of preparation. This would make it possible to nurture great interest among related businesses. The steps are as follows:
- Create a favorable image for oneself;
- Make yourself easily spotted in China;
- Land oneself a good reputation;
This would be immensely helpful for generating leads from related businesses and converting them into clients. Let’s take a closer look at what each of these stages implies.
Personal content availability
Let’s say before reaching out to the Chinese automotive market it is important to draw one’s portrait. A nice & informative Website is the main tool for that. However, it is essential to consider that a website should be designed to fit Chinese habits and requirements:
- It should be designed in Mandarin otherwise they won’t bother to check it;
- It should have China/Hongkong/Singapore hosting otherwise it could be difficult or even impossible to reach;
- It should be informative and interactive otherwise it won’t catch a single picky Chinese eye.
Being visible on the Chinese Web
B2B is a PC world in China
Just as was noted before, your target market will go online to search for an automotive factory. 85% of Chinese Internet users will go on Baidu, a Chinese alternative to Google which is also blocked here. There is a deluge of local and foreign automotive factories present on the Chinese web that would pop up first on Baidu and attract all the attention of your potential yet lost leads.
How to reach the top of the Baidu ranking?
Short term = pay to Baidu and get Pay-per-click ads. This brings leads fast however high-quality leads think a PPC ad is not for a reputable manufacturer that they need…
Long-term = getting on top organically owing to:
- As many relevant keywords as possible on your website;
- Landing oneself a Baike page – a very trustworthy account on Chinese Wikipedia;
- Getting into Chinese Quora and various forums (Zhihu, Zhidao, Tieba, etc.).
Read more information about Baidu SEO and PPC
Being highly reputed (Trust matter)
Brand reputation is of utmost importance in China’s automotive industry. This is a must for both experienced and fresh manufacturers. Without it, no business would consider buying anything from you. So it is vital to make as many experts talk in a positive way about you.
There are a few effective methods to build up a good rewarding reputation in China:
Press relations form an important part of a search for a worthwhile automotive factory in China. Businesses would refer to professional magazines and other expert sources of information to find a manufacturer. It would be helpful to get a significant amount of regular mentions in local digital automotive sources, like 车型大全for instance.
- Social Media
A progressive Chinese society is widely using social media for various purposes. Most popular social platforms get up to 900 million active users each. They pick up trends and ideas there. Social platforms act as an effective medium for influencing Chinese minds. Here are the main channels in this field to land you good exposure:
WeChat is an alternative to Facebook in China with far more diverse functions and an audience of 900 million people. WeChat offers an opportunity to open official accounts and influence your followers with regular newsletters.
Weibo is a substitute for Twitter in China with more than 500 million active users.
KOL are key opinion leaders or Chinese influencers. Getting a few influencers who are experts in the automotive industry to promote you as the good manufacturer will definitely attract the masses from the automotive industry in China.
How much effort does it require?
- For you, as for an automotive factory, this might be plain sailing if you contact GMA.
- We are experts in marketing automotive factories in China.
- We have an expert to give you an individual approach and an effective strategy and 70 more people to make a miracle happen.
Where to start?
Drop an email, call us, or drop by our office once you are in Shanghai for more details and the success stories we have brought to life.