For China with Love! | Global Brand China-only Cars You Probably Never Heard About

 

By Jean-Philippe Launberg, and in partnership with Escopo Automotivo.

Months ago I wrote about China’s domestic OEMs fast evolving automotive design capabilities (see Chinese Cars: Just Copycats?).

This time I want to highlight another developing aspect of the Chinese market: foreign brands are now frequently designing cars exclusively for the China. This is an expensive practice, but one that is justified by the market size, particular tastes of (some) Chinese customers, and the business dynamics between these brands and their local joint-venture partners. As an example, the domestic Compact Car segment is so large, that by itself it would rank among the 5 largest car markets in the world. This means automakers have to cater to large and diverse customer groups; hence the opportunity for several models from individual brands to effectively compete in it.

Love China 3

One may start thinking of how some of the China-exclusive models might fare if exported or produced abroad, which is exactly the point I would like to open for debate today. Certainly it would be no hardship to export into Emerging Markets; China’s regulations, environmental and usage requirements are as strict ― or stricter ― than most, so changes would be few and small in scope (with the exception of right-hand drive conversions). For Developed Markets, some extra engineering might be required to comply with safety regulations and requirements, but since many of the China-unique models are based on global platforms, it should be quite feasible. I suspect the greatest challenge is that these models are Made-in-China, which is a pity as the design, development philosophy and practices, as well as the quality and sophistication of tools and equipment are far more important than the country of manufacture. Chinese plants, for example, are among the newest in the world, and well-equipped given the massive recent investment. It’s a pity potential international customers are still locked in the old paradigm, but perceptions do matter. I have no qualms about buying a Chinese-made BMW, Honda, etc. I would even seriously consider some of the latest domestic brand products from Geely, BYD, Haval, Roewe and others.

Moving on, here are some interesting foreign brand ― in alphabetical order, not importance ― models made exclusively (at least so far) in China and for China. Let us know, by commenting, if you believe any of them would have appeal outside of China.

Citroen C6

C6 sketch released by Citroen.

C6 sketch released by Citroen.

Its previous generation was built in France to compete in the European executive market. As with other volume brand’s executive entries, it was “crowded out” by the luxury German models from Audi, BMW and Mercedes-Benz. The new C6 looks like it will be manufactured only in China, off the PF3 platform. Although the Chinese market is maturing fast, Citroen clearly believes there is still a chance to make a mark in the local business market dominated by the Honda Accord, Toyota Camry, and the VW Passat and Magotan.

It will come with a (again) China-only 1.8-liter turbo “Prince” engine,(with a likely hybrid version later on. The new C6 will be unveiled this April at the Beijing Motor Show. This time around it will be a more conservative notchback than the more daring design of its previous generation.

Could the C6 work in Europe as an unorthodox alternative to a Ford Mondeo and VW Passat?

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There is already solid information that the C6 will be the baseline for a larger DS sedan — the DS 9 — but no teaser images have been released so far.

The premium DS brand from PSA has at least as much focus on China as it has in Europe. In addition to the DS 3, DS 4 and DS 5 hatchbacks available in Europe, it has expanded its portfolio with 3 dedicated and locally-produced products designed to appeal to the Chinese customers.

DS 4S

This just-launched compact hatchback does not share the international DS 4 (without the “S”) crossover-ish proportions, and neither its polarizing design. The DS 4S looks (in my eyes at least) substantially more dynamic and appealing. The DS 4S shares its PF2 platform and powertrains with the DS 4 though, meaning engines of up to 200 hp. Pricing hasn’t yet been announced, but it will be much lower than the imported DS 4, a car it will effectively replace in China, rather than complement.

It’s debatable the wisdom of selling a relatively pricey hatchback in China, given its historical preference for notchbacks, but there are success stories such as the Buick Verano GS (i.e. Opel Astra), VW Golf, Ford Focus, etc., especially in Tier 1 markets (the big cities). Proper positioning and communication is paramount, nonetheless.

DS 4S (DS website)

DS’s “4S” is a very different proposition to that of the European “4”, and arguably more attractive.

Would the DS 4S be a better global play than the DS 4?

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DS 5LS

It’s the first China-unique DS model, and it is a more conservative compact-plus sedan than the “avant-garde” ― and beautifully-styled ― DS 5 hatchback. The 5LS shares the latter’s PF2 platform, but it is longer given its bodystyle. It is also priced significantly below (around 25%), aimed at a different set of customers. It comes only with the smaller (1.6-liter) turbo “Prince” engine, though it is tipped to soon get a turbocharged 1.2-liter “EB” engine to enjoy lower taxes in China. The DS 5LS is an alternative, for buyers looking for a sportier and stylish “personal” sedan, to the Buick Verano, VW Lamando (see more below), and entry-level versions of the Honda Spirior.

The DS 5LS is a compact sedan that sells on styling and performance.

The DS 5LS is a compact sedan that intends to sell on styling and performance.

Would a sedan like the 5LS help the brand gain meaningful ground in other global markets?

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DS 6

Not to be left out of the Chinese SUV “boom” (which is growing at a rate of approximately 60% annually), and to leverage its less brand loyal customers, DS launched in 2014 the compact DS 6 crossover. It will surely become DS’s best-seller and profit-maker in China for the next few years. It continues the platform-sharing strategy with the DS 4S, DS 5 and DS 5LS, and as a consequence no all-wheel-drive version is available ― which could limit its credibility. The DS 6 competes for customers with other more dynamic compact crossovers such as the Ford Kuga, Mazda CX-5 and entry-level versions of the Buick Envision (itself a China-only product, but that will soon head to the USA).

The "6" is China's best-selling DS product by far.

The “6” is China’s best-selling DS product by far.

With crossovers booming all around the world, shouldn’t DS sell the DS 6 wherever it can be made to comply with regulations (without too much effort)?

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Ford Escort

This Ford nameplate has last been used at the turn of the century, replaced then by the progressive 1st generation of the Focus. Driven by the relatively high design cost of the current (3rd) generation Focus, Ford decided to re-body the 2nd generation, creating the 2015 Chinese Escort. It neatly bridges the price gap between the sedan versions of the Fiesta and the Focus, targeting less well-endowed and traditional families (mostly) looking for their first new car, room for 5 people and luggage, and the image afforded by an international brand. The proof that the formula works is that, in its first year on the market, the Escort sold more than 200,000 units.

The Escort's blend of very affordable family room and international brand image has worked well in China.

The Escort’s blend of very affordable family room and international brand image has worked well.

Is there portfolio room, and rationale, to add the Escort to other Ford Emerging Markets?

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Ford Taurus

A traditional American fullsize car brand has been re-invented and introduced to China last year. It follows a similar strategy adopted by GM and its Epsilon platform, available in regular and long wheelbases. The Taurus makes do with a longer and wider derivative of the Fusion/Mondeo CD3 platform. Nonetheless, it’s about 200 mm shorter (despite an 80 mm wheelbase increase) and near 100 kg lighter than the USA model. Despite the new brand, and the mainstream image of the Ford brand, it is already into a good fight with two traditional nameplates in China: the Buick LaCrosse and the Toyota Crown. There is no indication that this latest Taurus will be soon going to other markets.

Ford Taurus

The new (China) Taurus is certainly changing Ford’s brand perceptions in the country.

American and Canadian readers, which Taurus would you rather see in your markets?

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Hyundai Mistra & KIA K4

The Mistra is wooing new customers by the boatload by offering them outstanding value-for-money: near-Sonata size and roominess for near-Elantra price and running costs. Sounds simple, but not many automakers managed to pull it off as well as Hyundai did. In 2015 they sold 155,000 Mistras in China, more than twice the number of Sonatas. I wonder what is preventing Hyundai from selling it in other markets (especially emerging ones, read Suggestions for Hyundai to Keep on Growing) around the world where the Sonata is unsuccessful due to its price.

Mistra: near-Midsize dimensions and prestige, for near-Compact price and fuel efficiency.

The Mistra: near-Midsize dimensions and prestige, for near-Compact price and fuel efficiency.

The Mistra "compact plus" sedan provides a very appealing proposition ...

The Mistra “compact plus” sedan provides such an appealing proposition …

The concept worked so well that the Hyundai Group created an equivalent car for KIA ― the K4 ― sharing the Mistra platform and mechanical bits … and conquering an additional 62,000 customers last year.

... that KIA launched the similar K4.

… that KIA launched the similar K4.

Am I alone ― or grossly mistaken ― seeing a missed opportunity here for Hyundai?

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KIA KX3

The 4.3 meter long KX3, launched in March 2015, is KIA’s entry into the hotly-contested small crossover segment. It is also a sister-car of the Hyundai ix25, which until its recent launch in India as the Creta, was also a China-only model. The KX3 comes only as a front-wheel-drive, but brings as an option an interesting ― for a car of this size ― 1.6-liter 160 hp turbo engine and 7-speed DCT. It competes directly with the Chevrolet Trax, Ford EcoSport, Honda XR-V and Hyundai’s own ix25. Last year, the KX3 and ix25 duo sold 150,000 units in less than a full year in the chinese market. Interesting to note that the KX3 was the first model to adopt KIA’s latest SUV design language, more recently introduced globally with the 2016 Sportage (KX5 in China).

This small Crossover has introduced us to KIAs new design language.

This small Crossover has introduced us to KIAs new design language.

With small crossovers in high demand, could the KX3 be the “poster child” that helps to establish KIA’s brand globally?

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Mazda CX-4

Mazda is getting ready to launch this compact coupe-ish crossover later this year. There is no indication yet that it will be produced elsewhere other than China, but I believe it is more likely than not that it will be at least exported. Although sleeker-looking (basically a tamed version of the Koeru concept car) and slightly longer (preliminar information) than the CX-5, it is yet uncertain how it will be positioned; the CX-4 nameplate suggests it will be priced lower than the former. Looks promising!

This Koeru Concept previews the upcoming Mazda CX-4.

This Koeru Concept previews the upcoming Mazda CX-4.

Scoop shots of the production CX-4s front rear.

Scoop shots of the production CX-4.

Assuming a similar price and feature content, which Mazda would you rather have?

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Nissan Lannia

This aggressively-styled compact sedan ― targeting people (I suspect men) in their 20s and 30s ― was designed in China, and has been in the market for only about a quarter. Regardless, it is already Nissan’s 2nd best-selling sedan in the country, after the Sylphy. The Lannia is priced a bit lower than a Chevrolet Cruze and Ford Focus, and only comes with a 126 hp 1.6-liter engine.

Nissan Lannia 1

The Lannia and its futuristic

The design of the Lannia has been well accepted in China.

Would the Lannia's styling help or hinder its acceptance outside of China?

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Volkswagen has so far been the most active OEM designing cars just for China; and they have been successful at that.

VW Lavida & New Bora

One of them, the Lavida (in both notchback and hatchback body styles), is China’s currently best-selling passenger car with in excess of 470,000 units sold last year. It is based on a refreshed and stretched PQ34 (i.e. 1998 VW Golf) which also underpins other China-only VWs such as the 2013 New Bora (familiar name, different car), which generated another 200,000-plus sales in 2015. The point is, VW has to serve both its joint-ventures, the Lavida being built by Shanghai-VW, and the Bora by FAW-VW.

Lavida & Bora 2

Spot the difference: Lavida (left) and New Bora (right) share the same underpinnings.

VW New Santana

Another VW so far limited to China is the new Santana. Once more, a heritage-laden nameplate re-invented over a (see the trend?) refreshed and stretched PQ25 (i.e. 2009 VW Polo) platform. The Santana (from Shanghai-VW), like the Lavida, also comes in a station-wagon/long-roof hatchback bodystyle with the prefix “Gran”. Together they sold 266,000 last year.

The new generation Santana

The new generation Santana

If you are having trouble telling one apart from the other, don’t worry, as you are not only one. The differences are a little more evident in person, but the key point here is that people are buying a VW, and the “safety in numbers” appeals to many. Although unexciting, these cars are hugely important from a business perspective.

Of much more interest are the VW Lamando and the recently unveiled Phideon.

VW Lamando

The Lamando is an elegant, yet jovial, compact sports sedan built on the MQB modular platform which also underpins the latest VW Golf, Audi A3, etc. Think of it as a small brother to the coupe-ish (Passat) CC. It is manufactured by Shanghai-VW and has been a resounding success, finding 104,000 buyers in its first year. I sincerely think VW should leverage it around the world. It comes with 1.4-liter and 1.8-liter TSI engines, and soon a GTS version will arrive with the 220 hp 2.0-liter motor that powers the VW Golf GTI, and styling upgrades.

The well-proportioned VW Lamando has been a hit.

The well-proportioned VW Lamando has been a hit.

Is there a chance that the Lamando would do well in North America and Europe?

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VW Phideon

FAW-VW has for many years done a roaring trade ― and profit ― with locally-produced Audis (A3, A4L, A6L, Q3 and Q5), surpassing the half-million annual sales (one-third were A6Ls) mark last year. In the meantime, Shanghai-VW priciest offerings was the Passat, and it is safe to say they made sure Wolfsburg wouldn’t forget about it. Worry no more! Later this year, deliveries of the new Phideon premium sedan will start. This new sedan measuring over 5 meters long is built on the new MLB platform that will also underpin the new midsize and large Audis. Prices have not been announced yet, but it is likely the Phideon will be cross-shopped with high-end versions of the Toyota Crown and Buick LaCrosse, as well entry-level versions of the Cadillac XTS, and Lexus ES.

The new Phideon premium sedan shall boost VWs image in China.

The new Phideon premium sedan shall boost VW’s image in China.

With VW already indicating that the new Phaeton will be an all-electric luxury vehicle, is there a rationale for selling the Phideon in Europe and North America?

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Have a nice week!


Sources: carnewschina.com; chinaautoweb.com; Google Images; OEM websites; netcarshow.com; pcauto.com.cn

About Jean-Philippe Launberg

Jean-Philippe - despite the name! - is a Brazilian-born automotive enthusiast with over 20 years of industry experience planning, engineering and managing vehicles and powertrains programs. In addition to Brazil, he has worked and lived in the United States, Italy, South Korea and China.
You can find all his articles Here.

Comments

  1. The Citroën C6 will not have hydro-pneumatic suspension. It will be built on the same base as the C5, which probably made you think so, but that is the same base as the Peugeot 508 for instance. When Citroën won’t build another hydro-pneumatic car for Europe (where they should have a base of customers used to that suspension) as has been confirmed by the CEO Linda Jackson, they surely won’t keep it in it’s program solely for a market which never knew the system and it’s heritage.

    Secondly, the last C6 was no hatchback…

  2. Bart Demandt says:

    Great first article, Jean-Philippe. And welcome to the Left-Lane team!
    As you say yourself, hatchbacks are not the most popular body style in China, which makes me wonder if DS would’ve been better off developing a DS 4LS sedan instead of the DS 4S hatchback. Sure, Volkswagen sold almost 200.000 units of the Golf hatchback in each of the past two years, but that’s still much less than it sold of the sedan versions. And Ford may sell slightly more Focus hatchbacks than Focus sedans, but include the sedan-only Escort in the comparison and the five-door is blown out of the water. And most notably: Peugeot’s attempt at conquering China with the 308S hatchback failed miserably at it’s outsold by a 10-to-1 ratio by the 408 sedan. If it were designed for Europe, the DS 4S sedan would make sense, but for China it’s a terrible miscalculation, one that will prove yet another failure for the brand that’s already struggling in China and which desperately needs a success model to establish itself as a credible luxury brand in this market.

    • Jean-Philippe says:

      Thanks for the welcome Bart. There is certainly more risk on a HB than a NB, but if well executed and marketed there is sufficient volume to be found and turn a handsome profit. The point on DS 4S for China fits the bill; with a compact notchback – the 5LS – on the market, DS got bold. Only time will tell. Let’s keep a close watch here on Left-Lane!

  3. Losange says:

    Citroen is working on a new, probably electronic, suspension (DS gets a different suspension system) and will focus on countries like China with their larger models. In Europe, Citroen is going to drop the C5 in favour of the differentation between the PSA brands. In this way, Peugeot gets more room with the 508 and DS can grow as a luxury brand.
    About the DS 4S, to me it looks like a Peugeot 308 with a DS sauce. Overall quite boring. Hopefully we won’t see this DS in Europe, because until now all DS models are very distinctive. DS 6 would do better I think.

    • Jean-Philippe says:

      Thanks for sharing your views Losange. Let’s see the voting turnout on the 4S x 4 debate … as an indication of where the auto experts/enthusiasts lie. Take care!

      • Losange says:

        Well that’s going to be a ‘Yes’ for sure, because we all know the DS 4 isn’t successful. So it’s easy to improve that miserable performance. Even for a car which resembles PSA’s current cars in this segment (i.e. 308/C4).

        The DS 4 is a good car, but in my view not well thought out. It doesn’t offer enough room compared with the C4.

  4. Personally I like most of them and would love to see them sold outside of China;

    – Citroen C6 – loved the first one, but it didn’t really sell – a new one would be great; would love to see the Dongfeng Fengshen A90 and upcoming DS9 as well – a budget option (Dongfeng) a mid-market (Citroen) and Luxury (DS), there’s even potential for a near-luxury new Peugeot 608 or above DS level Luxury new Saab 9-5. Each wouldn’t sell many individually outside the PRC, but if they do alright in China it would be necessary. Would also require coordination between Dongfeng and ChangAn.

    – DS 4S – better than the current DS4 or DS4 Crossback sold globally. Can’t see how it could hurt.

    – DS 5LS – a sedan option would help DS when it returns to the US.

    – DS 6 – would do wonders for DS globally after all SUV’s are big business now, but needs AWD and better engines (a theme for all models here, better engines I mean)

    – Escort – bring it on – Ford could certainly use another small sedan in a number of global markets.

    – Taurus – would be useful for Ford in the ME, Russia, Australia and NZ.

    – Mistra/K4 – again i’d be happy to see them sold globally, but probably a weaker case than most here.

    – KX3 – reverse of above, probably the strongest case compete with the booming micro-SUV segment.

    – CX-4 – Audi will soon go from 1-9 with the Q-cars, BMW the same with the X-cars, why can’t Mazda do something similar with the CX-cars (particularly given their new partnership with toyota).

    – Nissan Lannia – polarising looks – but that would actually help brighten up the boring global Nissan’s (except GT-R, Fairlady Z and Juke).

    – Lavida/Bora – possible issues with modern safety regulations given the old platform, and VW already has so many cars available in most markets across VW/SEAT/Skoda/Audi/etc; but I’d still like to see them, they’d add more diversity to the road, which would make the commute just that bit more interesting.

    – Santana – same as above; plus Santana is a cool moniker

    – Lamando – would go for one of those; looks good

    – Phideon – a better Phaeton, would need better engines overseas, but would be cool

    – others with potential options;

    -Buick GL8 Luxury Edition – competitor for Toyota Alphard/Vellfire and Esquire, Nissan Elgrand and Honda Elysion

    – Citroen C3-XR – another cool looking Citroen SUV

    – Honda Elysion – competitor for Toyota Alphard/Vellfire and Esquires and Nissan Elgrand

    – Honda Crider – Honda’s take on the Mistra/K4 theme – looks pretty good too.

    – Mazda6 Ruiyi and Mazda6 Classical – the 1st and 2nd gen Mazda6; always loved Mazdas and particularly the 2nd gen Mazda6 (looks better than 3rd gen imho) would be great to still be able to buy a new one

    – Toyota Crown – (I know it’s also sold in Japan; would prefer the newer Japanese version, but the Chinese version would be cool too) also have a soft spot for the Toyota Crown, particularly the Crown Majesta TRD President Biturbo V12

    – Volvo S60L PHEV – Geely will probably build a whole heap of China only Volvos over the coming years; quite a few will probably be desirable if the S90 and new XC90 are anything to go by.

    • Great points BC87. As per the (Buick) GL8, having been the custodian of 3 examples, I would say it needs to move on from the U-Van platform prior to landing in the USA and Canada to be able to deliver competitive dynamics and efficiency. Next gen maybe!

  5. Hello Jean-Philippe! Can you tell me when Renault will officially enter to China market? And what models are they going to sell ?

    • Bart Demandt says:

      Hello Avr,

      Renault already sells the Koleos crossover, Fluence sedan from South Korea, and the Captur small crossover from France, but in limited numbers and not included in our statistics, because they’re imported to China.

      Local production of the Kadjar crossover started in March, so you should be able to see it in our rankings in the coming months. It will be followed by a larger crossover (similar to the Nissan Qashqai vs. X-Trail) which should replace the Koleos.

    • Bart Demandt says:

      Hello Avr,

      the March 2016 data for China has just been released, and it includes the first month of sales for the Renault Kadjar in China.

  6. Krzysztof Wozniak says:

    Great article, it’s especially fascinating how the VW Bora and Lavida are direct competitors borne out of competing joint-venture projects.

    One question, though: isn’t the VW Santana based on the same platform as the European Skoda Rapid/Seat Toledo?

    • Bart Demandt says:

      That’s indeed interesting, and perhaps an inspiration for a future article. Because Honda does the same with the City/Greiz and the Vezel/XR-V for its GAC-Honda and Dongfeng-Honda Joint Ventures respectively.
      I’ll leave the Santana platform question to the expertise of Jean-Philippe (-;

    • Hi Krzysztof. Thanks. If I recall my Competitive Intelligence days, the New Santana is based on the Rapid, which in turn was underpinned by a CY08 Polo platform (PQ2x) derivative. We are both on the same page.

  7. Daniel says:

    How much influence on the final specs and (slighty differing) looks do the Chinese Joint Venture partners actually have on the final production cars?

  8. Jean-Philippe says:

    It varies substantially on both how strong the Chinese partner is, as well as how open the international partner is. In the case of SAIC-GM JVs, SAIC has a a lot of influence on Buicks, Cadillacs and selected Chevrolets. And not only about its looks and specs, but IF a car should go in production or not. On the flip side, take Brilliance-BMW partnership; Brilliance has at most minimum influence.

Let me know what you think of this article. Thanks!

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