Asian Cars: Auto Manufacturers to Watch
The Asian automobile manufacturing market is much broader than
many American consumers understand it to be. Beyond Honda,
Hyundai, Toyota, and other household names there are quite a few
automakers that are growing in size and respectability in their
own markets. Two of these companies have already committed to
selling their models in the U.S., but there are three others
worth knowing about and watching.
Starting in 2007, two Chinese automobile manufacturers will be
exporting cars to the U.S. and Canada. Geely Automobile Company
and the Chery Automobile Company are part of the first wave of
new Asian automakers preparing to serve the U.S. market. I won't
go into more detail about these two manufacturers, so please
read a related article I wrote titled, "Chinese Cars: Redefining
the Market," to learn more about them.
Proton -- Proton Holdings, the parent corporation of
Proton Motors, is the largest manufacturer of vehicles in
Malaysia. Volkswagen and Proton signed a strategic partnership
agreement in October 2004 whereby Volkswagen cars would be built
on Proton assembly lines beginning in 2006. Apart from the VW
venture, Proton has a line of models of its own consisting
primarily of subcompact and compact sized vehicles. Proton cars
are currently exported to Australia and the company is eyeing
the U.S. market perhaps as early as 2010. In addition to its VW
relationship, Japanese automaker Mitsubishi owns nearly a 16%
share in Proton.
Hindustan -- Since 1950, Hindustan Motors has been
building cars for the Indian market. Their current line up of
automobiles, looking as if they were built in the 1950s, do not
match up to current world styling standards. However, the
emerging Indian economy has been providing remarkable growth
across all business sectors and the Indian automobile industry
is ripe for renewal. The Ambassador Grand, one such model, has
recently been updated to meet current European emissions
standards. Look for a Hindustan model to be exported to Europe
first before taking on the highly competitive U.S. market.
Tata -- Unlike Hindustan Motors, India's Tata Motors is
currently producing cars that look as if they were designed
recently. As the only Indian car company featuring cars built
and designed by Indians, the company's Indica V2 and Indigo
compacts have received a favorable reception at the Geneva Auto
Show. Plans to export directly to the U.S. have been considered
but Tata cars may get to the U.S. under another label before
then, such as Ford or Dodge.
Beyond these five companies other state run automobile
manufacturing companies have sprung up in communist controlled
China. If Geely and Chery succeed, more makes will follow and
the floodgates will be open. More choice is coming for
consumers...for better or for worse.