Overcoming the Barriers to Entry
There are a number of regulatory obstacles & preconceived preconceptions regarding Chinese manufactured products which generate consumer resistance.
To tackle the challenges associated with consumer resistance, several Chinese car manufacturers have strategically acquired established brands like MG and Volvo, effectively penetrating and thriving in the UK market through these well-known names.
In the instance of Volvo, this acquisition brought with it a pre-existing network of established main dealers. This advantageous situation has empowered Chinese manufacturers to propel sales by leveraging and optimising the existing dealer network. The streamlined process and familiarity with local market dynamics have proven beneficial in gaining consumer trust and acceptance.
For new entrants into the market, especially those without the advantage of acquiring an established brand, the task becomes more complex. Developing a dealer network is a formidable challenge, both in terms of difficulty and cost, particularly when managed from a considerable distance of 6000 miles away. Cultural differences further compound this challenge.
The difficulty is accentuated when a car manufacturer has a limited offering of right-hand drive vehicles, perhaps comprising only one or two models. This constraint not only limits market appeal but also adds intricacies to the establishment and management of a dealer network. Overcoming these hurdles requires meticulous planning, substantial investments, and an understanding of the local market conditions.
Lack of After Sales Support:
After sales support varies among manufacturers. Some Chinese electric car companies are expanding their service networks globally to provide better support for customers.
Logistical Issues:
International logistics can pose challenges, but many Chinese electric car manufacturers have partnerships and distribution networks in different countries to streamline the process.
Supply of Spare Parts:
Availability of spare parts can be a concern, but established manufacturers are working to ensure a steady supply chain for spare parts to support their vehicles.
Warranty Issues:
Addressing warranty issues is crucial for customer satisfaction. Chinese electric car manufacturers typically have warranty programs in place, and improving transparency on warranty terms can enhance consumer trust.
Built-in British Distrust of Foreign Products:
Overcoming cultural biases or preconceptions is a challenge. Continuous efforts in marketing, showcasing quality, and addressing concerns can help change perceptions over time.
Meeting Type Approval COC EEC Requirements:
Meeting international standards and regulations, such as Type Approval COC EEC, is essential. Chinese electric car manufacturers need to comply with these standards to gain acceptance in foreign markets.
