Niche in the UK Small Family Car Market Janet Sam Alexander Michael 1 Definition: small family cars 2 With length between 4.20 m (165 in) and 4.35 m (171 in) long if they are hatchbacks, or between 4.40 m (173 in) and 4.55 m (179 in) if they are saloon or estate models. Business Plan Centre for lifelong Learning The University of Warwick Contents 3 Comparison of Chinese car market with British one Comparison of the performance of Chinese small family car with British one Potential customer of small family car in the UK Strategy to put Chinese small family car into the UK Centremarket for lifelong Learning Challenge of Business entering into the UK Plan The University of Warwick British Automotive Market 4 The UK is the fourth largest vehicle producer in Europe More than 40 companies manufacture vehicles in the UK – ranging from global volume car, van, truck and bus builders, to specialist niche makers. 1.6m cars and commercial vehicles are produced each year, plus three million engines. £51 billion turnover each year. Over 800,000 UK jobs rely on automotive manufacturing. UK automotive manufacturing supplies over 100 markets worldwide offering some resilience to UK issues. Business Plan Centre for lifelong Learning The University of Warwick Chinese Automotive Market 5 More than 13947 companies manufacture vehicles in China 13.79 million vehicles are produced in 2009 £252 billion turnover Business Plan Centre for lifelong Learning The University of Warwick Small Family Car 6 In 2009, new car registration: 605,817, 28.4% Business Plan Centre for lifelong Learning The University of Warwick Detail 7 Ford Focus 101,593 16.8% (134336,China2009) Vauxhall Astra 90,641 15.0% VW Golf 65,029 10.7% Honda Civic 34,474 5.7% Renault Mégane 33,543 5.5% ________________________ Segment total - 605,817 Diesel share - 46.7% Business Plan Centre for lifelong Learning The University of Warwick Britain’s best-selling car. 2.0 Titanium Hatchback /Ford Focus 2008 / 8 Business Plan Centre for lifelong Learning The University of Warwick Features China UK L/W/H 4342/1840/1500 4342/1991/1447 Litres / 100KM (combined) 6.8 7 Maximum Speed (MPH) 116 128 Kerb weight (kg) 1360 1326 wheelbase 2640 2640 0-60 MPH (s) 6.1 9.2 Brake horse power 141 143 Number of cylinders 4 4 Fuel type petrol petrol Number of gears 5 5 Transmission type manual manual Max torque (NM) 180 260 Emission standard Equal to Euro IV Euro IV Price £10000 £18790 Safety and Security Air Bag Driver standard Air Bag Passenger standard Air Bag Side standard Alarm standard Anti-Lock Brakes standard Central Door Locking standard Head Air Bags standard Power-Assisted Steering standard Seat - ISOFIX Anchorage Point standard Reasons to choose Ford Focus 11 enormous amount of room available to front seat occupants plenty of room in the back more storage space (extra rear overhang) pleasant to drive both in town and on long cruises easy to clean economical family hatchback with a sporty edge the steering has a reassuringly weighty feel and the gearchange is superb with its precise short-throw action Overall winner and best medium used family car of the decade: Ford Focus 1998 - 2005 Business Plan Centre for lifelong Learning The University of Warwick The ways to sell Chinese family cars to British 12 Build automobile factories in the UK Export automobile to the UK Business Plan Centre for lifelong Learning The University of Warwick Recent acquisition 13 2004, Ssangyong company of Korea merged by SAIC 2005,Rover merged by Nanjing Auto Group 2008, Joint venture of Geely with Manganese Bronze Holdings 2009, LDV merged by SAIC Business Plan Centre for lifelong Learning The University of Warwick Challenge 14 Establishing an information feedback system with end-users in order to improve service Modernizing outdated sales systems; Clamping down on counterfeit products. Change of exchange rate Petrol price change Higher requirement of emission Business Plan Centre for lifelong Learning The University of Warwick to be continued 15 Dealer, good local partner Financial support Business Plan Centre for lifelong Learning The University of Warwick Thank you 16 Business Plan Centre for lifelong Learning The University of Warwick