Hyundai Motor enters the Chinese luxury vehicle market

According to the Chinese Automobile Manufacturers Association, monthly sales of new vehicles in September 2019 fell by 6.3 percent year-on-year to the equivalent of 1.931 million units. During the period from January to September 2019, sales also fell by 11.7 percent to 15.2 million units. This was due to the ongoing trade dispute between the USA and China and a slowdown in the domestic economy. Sales of SUVs, which are currently enjoying high global demand, declined by 9.3 percent in China, contrary to the trend.

For Hyundai and its subsidiary Kia, this development also means a decline in sales figures in China. By the end of September 2019, Hyundai had sold 451,000 vehicles, a decrease of 19.6 percent compared to the same period last year, and Kia also recorded a drop of 17.3 percent. However, premium brands such as BMW, Mercedes-Benz, Audi and Lexus recorded an enormous increase. For example, Lexus, Toyota’s luxury brand, reported an increase of 22.8 percent in sales figures for the first nine months of 2019, while Mercedes-Benz recorded an increase of 11 percent.

Hyundai therefore plans to present its Genesis brand first on the Chinese market and later in Europe over the next few months. According to analysts, the competitive situation on the Chinese market for luxury vehicles is already difficult, so Genesis’ entry would be “all the sooner – all the better”. Genesis vehicles are currently being sold in South Korea, Canada, Russia, the Middle East and the USA. In addition to the geographic expansion to China and Europe, Genesis also wants to expand its model range. Currently there are only three limousines available, the G70, G80 and G90. The development of SUVs is therefore imperative, in the course of this year the first model, the luxury SUV Genesis GV80 will be launched. It competes with vehicles such as the Mercedes Benz GLE, BMW X5, Audi Q7, Volvo XC90 and Lexus RX350. Next year, Genesis is also planning another, smaller SUV model based on the G70 sedan, the GV70, which is to compete with BMW X3 and the like.

Numerous renowned automobile manufacturers are active in China or import components from abroad. Would you like to sell on the Chinese market? Then you have to have your products certified according to the CCC guidelines. We will be happy to advise you on the mandatory China Compulsory Certification (CCC).

For more information on how CCC certification may affect your company, or for more information about CCC certification in general, the process, and the associated costs, please visit our website and our News Section where you will find current updates twice a week.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).

You can also check out our free CCC-Brochure, which can be downloaded right here as a PDF file or you consult our book (in English) “A Brief Guide to CCC: China Compulsory Certification”, which can be found directly hier on Amazon.

 

Author: Julian Busch Publisher: MPR China Certification GmbH Tel.: +49 69 271 37 69 150 E-Mail: info@china-certification.com Web: www.china-certification.com

China boosts Volkswagen’s ambitions for electric vehicles

The rapid expansion of Volkswagen’s new ID series of electric vehicles continues with the introduction of two SUV-based models. However, these vehicles will be offered exclusively in China. The country plays an important role in Volkswagen’s goal to sell one million vehicles of the electric ID models by 2023. The responsible manager for China, Stephan Wöllenstein, further said that China is the driving force behind the electric vehicle model offensive, which began with the introduction of the ID3 compact sedan at the IAA Frankfurt. In fact, the success of Volkswagen’s immense investment in electric vehicles depends heavily on China and poses enormous challenges to the company.

Half of the 6.2 million vehicles sold annually by Volkswagen are in China, where the government is promoting electric vehicles through extensive subsidy programs. As a result, China has become the world’s largest sales market with a volume of 1.2 million electric cars. Subsidies have created hundreds of new start-up companies and a reorientation of established companies such as BYD, which produces more electric cars than any other manufacturer. The Volkswagen Group plans to sell a total of 22 million electric vehicles by 2028, half of them in China. This includes electric variants of existing series, followed by various ID models based on the Group’s own electric car platform MEB.

As for some VW series in the past, the ID models will be distributed in China by the Beijing-based company’s own import department and by three joint ventures, FAW-, SAIC- and the new JAC-Volkswagen. All three companies are currently building plants exclusively for the production of vehicles based on the MEB platform. The FAW and SAIC production sites will open next year and each have an annual capacity of 300,000 vehicles, with each company launching its own models. According to Wöllenstein, responsible for VW China, further measures are also being considered to increase capacity and satisfy the strong demand on the Chinese market. Wöllenstein went on to say that according to the preferences of customers in China, the company would first offer locally adapted and produced SUV variants of the ID 4 SUV and ID Roomzz from the ID series that gave the car its name. The sedan and the compact ID 3 will be available at a later date. Volkswagen is positively opposed to its electric vehicle offensive and sees it as a challenge to its competitors, even though its own sales figures will fluctuate. Wöllenstein added: “Particularly in difficult economic times, customers rely on a safe choice and Volkswagen has long been known in China as a safe brand. Choose the Chinese market, too. It remains a very attractive market for automotive suppliers. For the export of products, they need the obligatory China Compulsory Certification (CCC), for which we are happy to advise them.

For more information on how CCC certification may affect your company, or for more information about CCC certification in general, the process, and the associated costs, please visit our website and our News Section where you will find current updates twice a week.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).

You can also check out our free CCC-Brochure, which can be downloaded right here as a PDF file or you consult our book (in English) “A Brief Guide to CCC: China Compulsory Certification”, which can be found directly hier on Amazon.

 

Author: Julian Busch Publisher: MPR China Certification GmbH Tel.: +49 69 271 37 69 150 E-Mail: info@china-certification.com Web: www.china-certification.com

Chinese car brand Wey comes to Germany

The previous attempts to establish Chinese automobiles with simple technology and comparatively low prices on the German or European market have failed thoroughly. Many people will certainly remember the Landwind off-road vehicle from 2006, which failed in the crash test with catastrophic results, or the SUV offered as Martin Motors CEO, a banal copy of the BMW X5, whose sale was prohibited by the court in 2008 due to copyright infringements in the design.

Now, with Great Wall Motors, an established Chinese manufacturer once again dares to enter established markets in Germany and Europe. Under the Wey brand, premium SUV models are presented at the IAA 2019 that are scheduled to be launched on the German market in two years’ time. According to a company spokesman, Germany is the first and at the same time most important European market. Initially, a plug-in hybrid will be offered by the dealers, a fully electric model will follow later. In China, corresponding models are already on the road and in 2021 the market launch of the SUV Wey VV5 with a range of 500 kilometres is planned.

Wey has sold around 300,000 vehicles in China since the brand was founded, and the parent company Great Wall is working with BMW locally. The Wey VV6 SUV, available in China, was rated the best vehicle in a JD Power quality survey, and Wey’s customer service received the highest rating from the China Association for Quality. The planned plug-in model for the European market has a range of 100 kilometres in electric driving mode and is connected to a 2-litre petrol engine. The system has an output of 218 hp / 160 kW and the entry-level price is estimated at around 50,000 euros.

The company founder and namesake, Jack Wey, took the opportunity to personally present the SUV study at the Frankfurt IAA 2019. He also stressed that the company had caught up with the established brands in the fields of technology and innovation. At the next trade fair, a model close to series production will be presented and the market launch will be celebrated. The fact that Great Wall Motors is serious about introducing Wey in Europe is also shown by the establishment of a technology centre in Germany. “Only through globalisation the Chinese automobile brands will be successful in the long term,” said Jack Wey at the presentation of the brand in Frankfurt. Your company can take the opportunity presented by the increasing globalization of the automotive and supplier industries and exporting their products to China. For the export of products you need the obligatory China Compulsory Certification (CCC), for which we are happy to advise you.

For more information on how CCC certification may affect your company, or for more information about CCC certification in general, the process, and the associated costs, please visit our website and our News Section where you will find current updates twice a week.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).

You can also check out our free CCC-Brochure, which can be downloaded right here as a PDF file or you consult our book (in English) “A Brief Guide to CCC: China Compulsory Certification”, which can be found directly hier on Amazon.

 

Author: Julian Busch Publisher: MPR China Certification GmbH Tel.: +49 69 271 37 69 150 E-Mail: info@china-certification.com Web: www.china-certification.com

China is the largest market for electric vehicles

China is currently the largest market for electric vehicles and also controls the access and processing of most of the raw materials needed for the production of batteries that are installed in these vehicles. Electrically powered vehicles continue to use lithium-ion batteries in whose cells metals such as lithium, nickel, cobalt and manganese are incorporated. By acquiring mines in countries such as Bolivia, Chile, Australia and Congo, China has become the main supplier of these metals.

According to the “Global EV Outlook 2019” report of the International Energy Agency (IEA), the number of globally registered electric vehicles in 2018 was more than 5.1 million. This represents an increase of two million over the previous year and almost a doubling of sales of electric vehicles. China remains the world’s largest market, followed by Europe and the USA, while Norway has the largest market share for electric vehicles. By the end of 2019, more than 300 million electrically powered two and three-wheelers will be on the roads, the vast majority of them in China. With sales in the tens of millions, the Chinese electric two-wheeler market is a hundred times larger than any other region in the world.

However, experts expect the market to shift to India in the next few years. On the one hand, demand for electric vehicles, especially in the two-wheeler segment, will increase sharply there as the Indian government has introduced numerous laws and subsidy programs for electric mobility. On the other hand, there could be a saturation effect on the Chinese market and a weak economy could lead to declines in sales figures.

The Chinese car manufacturer SAIC Motor Corporation has reacted to these possible changes in the market with its subsidiary MG Motor and offers a locally produced electric vehicle in India. For local production, MG Motors India invested $22 million in its plant and installed a completely new production line. The compact SUV from MG Motors, called ZS EV, will be offered in India from next year, while the corresponding infrastructure as fast charging stations will be installed and operated by MG at certain locations until October. Take the opportunity of the increasing globalization of the automotive and supplier industry and export your products to China. For the export of your products you need the obligatory China Compulsory Certification (CCC), for which we are happy to advise you.

For more information on how CCC certification may affect your company, or for more information about CCC certification in general, the process, and the associated costs, please visit our website and our News Section where you will find current updates twice a week.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).

You can also check out our free CCC-Brochure, which can be downloaded right here as a PDF file or you consult our book (in English) “A Brief Guide to CCC: China Compulsory Certification”, which can be found directly hier on Amazon.

 

Author: Julian Busch Publisher: MPR China Certification GmbH Tel.: +49 69 271 37 69 150 E-Mail: info@china-certification.com Web: www.china-certification.com

Mercedes continues to be market leader for premium vehicles in China

All three major automobile manufacturers from Germany in the premium vehicle segment were able to defy the subdued mood on the market for new vehicles in China and report good sales figures. Mercedes-Benz continues to be number one ahead of BMW and Audi, and the brand with the star increased its sales figures in August by 13 percent year-on-year to 60,134 vehicles. Audi increased its sales by 2 percent to 58,850 units and BMW by 9 percent to 56,242. Mercedes also leads in the total sales figures for the past eight months of the current year. It delivered 464,226 vehicles, an increase of 4.1 percent compared to the same period last year. BMW was able to increase its sales by a remarkable 16 percent to a total of 442,642 units, while Audi also recorded an increase of 2.4 percent to 427,447 units.

Mercedes plans to further expand its leading role over its two main competitors in China. This is to be achieved by rapidly expanding of the models offered from local production. This year, the Group is building its first all-electric vehicle, the first AMG model and another crossover SUV with a combustion engine in cooperation with its joint venture BAIC Motor. The three new models are the electric EQC SUV, the long version of the AMG A35 and the GLB Crossover. In his joint venture Mercedes builds the GLA and GLC Crossover SUVs as well as the long versions of the A-, C- and E-Class sedans. Local production enables foreign automobile manufacturers such as Mercedes-Benz to avoid import duties and better adapt their vehicles to the preferences of Chinese customers. The Chinese market remains very attractive for automotive suppliers.

For more information on how CCC certification may affect your company, or for more information about CCC certification in general, the process, and the associated costs, please visit our website and our News Section where you will find current updates twice a week.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).

You can also check out our free CCC-Brochure, which can be downloaded right here as a PDF file or you consult our book (in English) “A Brief Guide to CCC: China Compulsory Certification”, which can be found directly here on Amazon.

 

Author: Julian Busch Publisher: MPR China Certification GmbH Tel.: +49 69 271 37 69 150 E-Mail: info@china-certification.com Web: www.china-certification.com

China reduces overcapacities to support weak automotive market

The Chinese economic regulator is planning measures to support the weakening automotive industry. A spokesman of the agency said the concrete steps are a strict control of the industry and a reduction of capacity to help the market out of one of the strongest crises yet. The government will focus more on the management of companies and the influence on overcapacities. In particular, the numerous new manufacturers of vehicles with internal combustion engines whose models are flooding the market will have to face restrictions.

“Overproduction must be brought back to an appropriate level,” says Lu Weisheng of the National Development and Reform Commission. “Car manufacturers that react late or with restraint to these new rules will be closed. Already in January of this year, the government enforced the regulation not to register any further manufacturers of vehicles with combustion engines.

Sales of new vehicles in China, the world’s largest automobile market, amounted to around 28 million vehicles in 2018, but this year manufacturers are having problems selling their cars to customers. In July, sales fell by 4.3 percent, undercutting the previous year’s figures. Capacity utilization in the Chinese automotive industry from January to July was 77 percent, down 3.8 percent from 2018. Normally, 80 percent capacity is expected to be used to run a plant economically.

The automotive market is under pressure from other factors such as falling stock prices, speculation on the real estate market and the introduction of stricter emission standards. This could be an opportunity for your company to export environmentally friendly and innovative products to China.

For more information on how CCC certification may affect your company, or for more information about CCC certification in general, the process, and the associated costs, please visit our website and our News Section where you will find current updates twice a week.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).

You can also check out our free CCC-Brochure, which can be downloaded right here as a PDF file or you consult our book (in English) “A Brief Guide to CCC: China Compulsory Certification”, which can be found directly here on Amazon.

 

Author: Julian Busch Publisher: MPR China Certification GmbH Tel.: +49 69 271 37 69 150 E-Mail: info@china-certification.com Web: www.china-certification.com

Cadillac presents new CT4 and celebrates delivery of more than 1 million vehicles in China

At an event last week in Beijing, Cadillac presented its latest model for China, the CT4 sedan. It also celebrated the sale and delivery of more than 1 million vehicles since its launch in 2013. The CT4 will be available from the beginning of next year. In China, Cadillac currently sells the CT6, normal and long versions of the XTS as well as the crossover and SUV models XT4, XT5, XT6 and Escalade.

The 2020 model of the CT4 positions itself alongside Mercedes, Audi and BMW as the entry into the luxury class. In the USA, the entry-level model of the CT4 with $33,990 is somewhat cheaper than its main competitors Audi A3 and Mercedes A-Class, but its external dimensions are more similar to those of a BMW 3 Series. The basic engine is a 2-litre four-cylinder turbocharged engine with 237 hp (177 kW), the Sport and Premium versions include a 2.7-litre turbocharged engine, also with 4 cylinders in row, which delivers 309 hp (230 kW). An eight or ten-speed automatic transmission is used for power transmission. As standard, all CT4 variants are equipped with a keyless entry system, start button, a high-end audio system and a high-resolution rear view camera. Additional features are available at an extra charge.

A GM spokesman announced an aggressive expansion strategy with the introduction of new models and Cadillac’s coverage of the entire luxury market in 2020. In the third quarter of this year, Cadillac sold approximately 51,000 vehicles in China, an increase of 11 percent over the same period last year. During the first 9 months of the year, sales also increased by 8.3 percent to 162,256 units. This made Cadillac the fourth-largest luxury car manufacturer in China after Mercedes, Audi and BMW.

The Chinese market is still growing and is therefore interesting for car manufacturers and suppliers who want to export their products there. In many cases, this requires mandatory China Compulsory Certification (CCC), for which we are happy to advise you.

For more information on how CCC certification may affect your company, or for more information about CCC certification in general, the process, and the associated costs, please visit our website and our News Section where you will find current updates twice a week.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).

You can also check out our free CCC-Brochure, which can be downloaded right here as a PDF file or you consult our book (in English) “A Brief Guide to CCC: China Compulsory Certification”, which can be found directly hier on Amazon.

 

Author: Julian Busch Publisher: MPR China Certification GmbH Tel.: +49 69 271 37 69 150 E-Mail: info@china-certification.com Web: www.china-certification.com

SAMR Conducts Unannounced Tests on Specific Products in China

The SAMR (State Administration for Market Regulation) has launched unannounced tests on several product groups from 80 different plants between July and August 2019. Out of a total of 110 tested products, 19 had significant safety deficiencies, therefore CCC certificates for these products were canceled with immediate effect.

This shows how strictly the product conformity is controlled by the Chinese authorities. Random checks can also take place during import or distribution of the products.

Even non-CCC products must comply with Chinese GB standards and security requirements.

We highly recommend that you have your products that do not require CCC certification or have to be certified as part of a CCC self-declaration certified to a voluntary CCAP certification or CQC certification. This will greatly reduce the risk of problems at customs and for the manufacturer.

A voluntary China certification proves that continued compliance with Chinese GB standards and regulations regarding quality, safety, environment and performance is guaranteed. Thus, the manufacturer guarantees that his product meets the corresponding Chinese quality requirements. It thereby increases the competitiveness of its product in the local Chinese market and minimizes the risk of problems with inspections by the SAMR.

National quality labels have a much greater importance in the China than, for example, the CE logo. In many product areas, it has now become standard to have a voluntary certification and the corresponding marking. A Chinese certificate also minimizes customs problems considerably.

The voluntary CQC or CCAP certification is almost identical to the mandatory CCC certification. Only the marking is different.

For more information about the CCAP/CQC Mark Certification, you can download our detailed brochure Voluntary CCAP/CQC Certification here.

If you have any questions regarding CCAP/CQC Mark Certification, you can contact us any time. Call us directly (UK: +44 2071931135, Rest of Europe: +49-69-2713769150, US: +1 773 654-2673) or send us an email.

 

Author: Julian Busch Publisher: MPR China Certification GmbH Tel.: +49 69 271 37 69 150 E-Mail: info@china-certification.com Web: www.china-certification.com