Chinese electric vehicle (EV) manufacturers have been on the upswing. Firm’s like NIO and Bordrin show what Chinese engineering can achieve as they build their brands abroad. More established but niche car manufacturers like Karma and Saleen are seeking to capitalize on the EV momentum. Both companies were originally U.S. brands that are now Chinese owned. In a highly competitive global market with very few Chinese options outside of China, these companies could become globally competitive brands.
When the FAO Global team visits international conferences and auto-shows, we notice that Chinese manufacturers are sorely underrepresented. At a time when marketing and branding should take top priority, many of these companies have small displays or do nothing detailing what their product is. Below, we provide 3 tips for how Chinese electric vehicle manufactures can succeed globally.
Tip #1: If you want to build an allure, be involved in Grass Roots car culture.
Imagine a NIO EP9 rolling up to a Southern California car show. Very few individuals outside of those who watched Amazon’s “The Grand Tour” last season have probably ever heard of it. Now, imagine a NIO or Karma pulling up at your local Cars and Coffee and having a knowledgeable, engaging, and passionate representative opening the car up for people to look at. The crowd is likely to be more intrigued and excited to get to understand the product in further detail.
What many of these companies focus on is building a brand of exclusivity and luxury. These brands should capitalize on the value of outreach such as car magazines and viral sightings on YouTube and Instagram.
Image: From NIO’s Website
Tip #2: Chinese firms need to be twice as competitive
Like Korean cars in the 90’s, Chinese manufacturers face a perception battle with western, and likely global, consumers. Not only are many of these cars not present in magazines or on U.S. or European roads, but when the average person sees one of these car brands, they do not know what it is. An outsider does not know about the warranty, the service packages, or where the company is going to be 5 years from now.
An example of a successful competitive branding strategy was Hyundai, who offered 10 year, 100,000-mile warranties on their cars to incentivize their sales. While higher end luxury automotive companies may not want to offer a low-cost option, it is still wise to offer something new that drives sales and sparks passion.
Tip 3: Build an Enthusiast culture, not only tech
The employees and representatives of automotive companies should all be engaged in their respective car communities at some level. It is helpful for each employee to be an Ambassador for the brand and be active on social media by retweeting, re-posting, sharing stories, and getting a larger network to build trust in the new brands.
Most of these companies have the pieces in place to be highly competitive and successful, but they are under branding and under targeting their potential consumers. Finding the passion within each respective company’s personnel and the target community is key to changing this dynamic.
About the Author
Brandon Hughes is a U.S. businessman and China Strategist with over a decade of experience focused on emerging markets. He is currently the Founder/ CEO, and Principle consultant at FAO Global which provides bespoke data analysis and management consulting services to firms investing & operating in China & emerging markets.
Brandon brings over a decade of experience working in international markets from the public, non-profit, and private sectors. He holds an L.L.M. from Tsinghua University (Asia#1) and a B.S. in International Business from UNLV. He is currently completing a joint MBA through Columbia University, London Business School, & Hong Kong University.
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