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China Cars to Invade the U.S. Market: Light Years Away, Experts Say

| Feb 20, 2015 06:43 PM EST

Experts say that China's biggest challenge in entering the U.S. market is convincing the Americans that their car is of the same high quality with popular cars already in the US such as Toyota and GM.

Chinese carmaker GAC Motor exhibited China-made vehicles during a car show in Detroit last month. The presence of the sporty GS4 raised questions about when exactly will China export cars to the U.S.

However, experts have a ready-made answer to that perennial question. The answer to the question of "when" is "light years away."

Chinese vehicle manufacturers had been announcing U.S. market invasion since 2006, when the first-ever China car made by Gilly was displayed on the Detroit car show. Now almost 10 years later, a single car has yet to arrive in the country.

Though Chinese carmakers are confident in their products and very vocal in their future plans of selling cars in the western market, the manufacturers are also quick in postponing the exact year of their market invasion especially when faced with passing the U.S. safety and emissions test.

Aside from government standards, the bigger challenge for the Chinese car manufacturers lies in convincing the American buyer that their cars have the same high quality with those cars currently populating the U.S.

IHS's automotive group managing director Michael Robinet said that China's presence in the recent Detroit car show does not mean the Chinese are in the U.S. doorstep and about to come in. Robinet stated that China is just showcasing their products, announcing that they are in the game, and prospecting to expand offshore.

Robinet also said that those who would buy China cars would likely come from the lowest segment of the market, those who go for the lowest priced. Segments higher than that, Robinet added, would be already asking the question of whether to buy a used Toyota or a brand new car that has just arrived in the U.S. shore.

Senior vice president of global automotive operations at J.D. Power and Associates John Humprey said that although the quality of Chinese cars have improved these past few years, they still lack the finish that U.S. car buyers expect.

Humphrey said that the general belief is that vehicles made in China are sub-par.

Guangzhou Automobile exhibited cars including a small SUV that will be sold in China oi April, as well as exported to the Middle East, South America, Africa and eastern Europe late this year. Although there is no timetable yet, GAC said they are looking at 2017 as possible year that they can start selling in the U.S. soil.

GAC Group general manager Wu Song said: "Before entering the North America market, we'll have a full understanding of the culture and consumption features of the North America auto market and release according models."

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