By Matt Hodges (China Daily) Updated: 2009-04-30 07:53
There was a time when Chinese boys wanted to be one of only three things when they grew up: a doctor, a lawyer or Yao Ming. Not any more.
"I want to be a car dealer," says Xia Bohan, a Shanghai elementary school student who celebrated his eighth birthday on Saturday with several friends, a grey plastic "Batcycle" and more than 100 toy cars.
"I want to go to the Shanghai motor show to look inside the concept cars and see the new models you can't see on the street. But my dad won't take me." When Bohan was 3 years old, his teachers used to call him "the car doctor".
As precocious as he doubtless is, Bohan's love affair with cars reflects a growing trend among Chinese consumers. After joining the World Trade Organization (WTO) in 2001, China has seen a phenomenal growth in its automotive industry.
As the country's economy boomed so did its vast consumer base. It now enjoys more disposable income than ever before and a fast-changing lifestyle. There has also been rapid development in road infrastructure, with 2,000 km of new highways built every year.
And for many, a shiny set of four wheels is a sign of prestige. "Cars have become the ultimate status symbol here," says Xia Bing, the boy's father, who spent several years living in Tokyo. "It's not like in Japan, where everyone has a car so no one cares about it."
The car boom is putting pressure on China's local environment, not to mention challenges for the authorities.
The Chinese government is currently attempting to pioneer the widespread use of eco-friendly electric cars amid fast-rising levels of pollution in cities like Beijing, Guangzhou and Shanghai.
At this month's Shanghai Auto Show, the industry's answer to the Opening Ceremony of the Olympics, foreign brands, such as Mini, Volkswagen, Porsche and Honda drew huge crowds. Fewer were drawn to their Chinese counterparts, Great Wall, Geely and Zhongxing.
"We still need time to catch up," said a nervous Great Wall salesman, dwarfed by statuesque models wearing ball gowns and stick-on smiles.
Chinese brands accounted for 30 percent of vehicle sales in China in the first quarter of 2009, according to the China Association of Automobile Manufacturing. Geely and local rival Chery saw their sales rise by an almost identical margin over the same period.
Although the rate of growth in China has slowed overall, it still overtook the US as the world's biggest motor vehicle market for the third straight month, posting record local sales figures.
In contrast, key US players like General Motors are facing the very real threat of bankruptcy. Chrysler this week saved itself from collapsing by mapping out a restructuring plan.
Things may well get worse for the industry superpowers as local brands figure out how to become more competitive. "I'll only ever buy Chinese and I'll tell my kids to do the same," says 73-year-old Yan Dunsong.
Among the Auto Show crowd, Chinese students pose for photographs in front of the jerseys of NBA stars Alan Iverson and Pau Gasol at the Toyota stand.
"We're all Rockets fans," says Xu Chongyao from Hubei province. "We always see the name (of NBA sponsor) Toyota when we watch games, so we like it more. Some of Toyota's cars are really perfect."
The 22-year-old car design student plans to have his own set of wheels within five years.
Buyers here still favor compacts and sub-compacts but times are changing, according to one auto industry expert.
"The Chinese are starting to get crazy about huge sedans," says Japanese car tool-maker Tatsuya Kudou. "They're completely different from Indians, who like small compacts, and Japanese, who are tightening their belts (because of the recession) and becoming more environmentally aware."
Wang Ye, 33, is saving hard for a sports utility vehicle (SUV). "It's just so cool and it's suitable for the family," he says. "More of my friends are buying their first cars these days and a lot of them are going for VW Golfs, because the accessories are cheap."
China 's car buyers are split between those keen to show off their new wealth and those who don't want to lose sight of traditional values.
"Why do people have to have a car nowadays?" asks 38-year-old schoolteacher Zhou Hongjuan. Like many Chinese, she rides an electric bicycle to work. "It's not economical to own one in Shanghai, and I can grab a cab when it rains without having to pay exorbitant parking fees."
As if rising parking fees in big cities were not bad enough, Shanghai locals also have to fork out around 28,000 yuan for a registration plate.
Yet older people, while bemoaning the threat to Mother Nature, acknowledge that it is futile to swim against a tide of SUVs, Mini Coopers and Volkswagens.
All three types of vehicles were hugely popular at the 2009 Auto Show, which dominated headlines nationwide as World Earth Day limped by last Wednesday almost unnoticed by the Auto Show visitors.
Some 125 years after Karl Benz made the world's first car sale in Germany, China has jumped on the gas-guzzling bandwagon and now has its pedal fully to the metal.
Less than a decade since Chinese buyers began shelling out in earnest, auto sales in the country registered year-on-year growth of almost 4 percent in March.
Even in the global recession, local analysts say 2009 should see a sales growth of 8 percent in China, as against a 10 percent dip worldwide.
"The (Chinese car) market is now in the middle of the mature stage," says Shanghai-based Lexus dealer King Wong. "People are very aware of all the brands and what they represent. There's no ignorance any more.
"There are far more brands here now than there are in the US or Europe, so we can expect a huge boom soon."
But is China developed enough to handle the automobile? Middle-aged men, still only rookie drivers, routinely tear around blind corners at breakneck speed, after-service is poor and roads in the south are full of ways to destroy new wheel axles.
"My friend drove from Shanghai to Chengdu. No problem. Then he headed for Tibet and, one hour later, he changed his mind and drove back to Shanghai. He said the roads were so potholed he was scared his new prize would get destroyed," says Xia senior.
"Bohan likes expensive cars too much," adds the 40-year-old engineer, who drives an environmentally friendly Honda Fit. "He always tells me my car isn't good enough.
"I really don't want to take him to the car show." (China Daily 04/30/2009 page18)
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