Wally Edgar Chevrolet -- CHINA Products Begin To Match Up.

Chinese brands narrow quality gap with foreign automakers.
By: GORDY O'CONNOR
 
Nov. 1, 2010 - PRLog -- SHANGHAI -- When it comes to vehicle quality, domestic Chinese brands are catching up to their global peers.
According to the 2010 China Initial Quality Study published by J.D. Power and Associates, the quality gap between domestic and foreign brands has reached its narrowest margin in the survey's 11-year history.

In 2010, domestic Chinese brands averaged 224 problems per 100 vehicles, down sharply from 258 problems a year earlier. By comparison, foreign brands averaged 135 problems, down from 142 problems in 2009.
The study is based on evaluations by 14,649 owners of new vehicles purchased between October 2009 and June 2010. The California-based J.D. Power canvassed buyers of 151 different models in 33 major cities.
The study asked owners to list any problems with new cars after two to six months of ownership. The initial quality score is calculated by the number of problems experienced per 100 vehicles.

Over the past ten years, Chinese brands have enjoyed dramatic improvement. This year's gap with foreign brands - 89 problems per 100 vehicles - is a huge improvement over 2000, when the domestic brands had 396 more problems per 100 vehicles.
In 2010, domestic models topped quality rankings in three segments: compact, lower premium midsize and minivan. Top performers are listed below:

Compact: Changan Benben i
Premium compact: Suzuki Swift
Entry midsize: Nissan Tiida
Midsize: Toyota Corolla EX
Lower premium midsize: FAW Besturn B70
Upper premium midsize: Mazda 6
Luxury: BMW 5 Series
SUV: Toyota RAV4
Minivan: Hafei Minyi

IN OTHER NEWS: According to an analysis by the California-based research firm, electric cars will account for slightly less than 2 percent of China's vehicle sales.Europe will be the world's largest market with sales of 742,000 EVs, or 3 percent of the region's vehicle sales. In the United States, annual demand is expected to total 108,000 units, less than 1 percent of total sales.Japan will generate annual sales of 67,000 units, less than 2 percent of total vehicle sales.

In 2020, J.D. Power expects worldwide sales of 1.3 million EVs, less than 2 percent of total vehicle sales.
That forecast is significantly more conservative than that of Renault-Nissan CEO Carlos Ghosn, who expects EVs will account for 10 percent of global sales.
But it closely tracks Volkswagen AG's prediction that EVs will generate 2 percent of worldwide sales.

"We don't anticipate a mass migration to green vehicles in the coming decade," said John Humphrey, J.D. Power's senior vice president of automotive operations, in a statement.
In most markets, hybrids have better sales potential than "pure" electric vehicles. J. D. Power predicts hybrids will account for nearly 6 percent of global sales in 2020, or 3.9 million units.

But China is seen as a poor market for hybrids; J.D. Power predicts hybrids will generate annual sales of only 97,000 units in China by 2020, less than 1 percent of market share.

SOURCE: Auto News Europe/China

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