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Case Title:

Automobiles: Made in China, Sold in America?

Publication Year :  2010

Authors: Muthu Kumar, Nagendra V. Chowdary

Industry: Manufacturing

Region:US

Case Code: MM0035

Teaching Note: Available

Structured Assignment: Available


OR





Abstract:
China, with a vast skilled and low-cost labour force, has transformed itself into a hotbed of automobile manufacturing for both multinational and domestic companies. Chery, a state-owned carmaker, is one of the fastest growing domestic automobile manufacturers. Like a few of its domestic competitors, Chery also plans to export its cars to the developed markets, especially in the US. However, the traditional notion of American customers that 'Made in China' goods are of inferior quality, might affect Chery's prospects in the US.

Pedagogical Objective:

  • To understand the dynamics of China's automobile market
  • To discuss how the 'country as a brand' affects the sales of its products in foreign markets
  • To discuss Chery's international expansion strategies and how it is making efforts to cope with the regulatory and technological challenges to establish its brand in the US market.

Keywords : Foreign carmakers in China; China's automobile industry; Chinese automobile brands; China as an automobile manufacturing hub; Low cost manufacturing countries; Localisation; High value added activities; Branding of 'Made in China' products; Expansion strategies of Chery; Industry Analysis Case Study; Country as brand; Challenges for Chinese carmakers

Contents:

  • China's Automobile Industry
  • Consumer Behaviour
  • Market Dynamics
  • Chery: International Expansion Strategies
  • Chinese Cars Going Global: The Challenges

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