Fiat 500 in China: a market report
To see more market report about automotive market in China
Chinese market, as many people believe, is and will remain the biggest auto car market in the world. Unlike the European or the US market where the majority of car brands are local ones, Chinese market is unique because of its diversity, its great potential, and its amazing purchasing power. Fiat claimed the next decades will be the renaissance years compared to the situation in 1990s. By doing so, Fiat launched its new series Fiat 500 in China this year.
Brand recognition of Fiat 500 in Chinese market is growing
Fiat, the Italian automaker is quite slow to adapt to new market, especially the rapid growing Chinese market. Market report in China shows that Chinese prefer to consume products that the majority know with good feedback. This mentality is perfectly shown by the blindness rush for Gucci and LV bags for Chinese tourists overseas. According to IHS Automotive, Fiat sold less than 600 models of Fiat 500 in 2012 but it is expected to double the number this year. The cooperation of Gucci and Fiat made it the headlines of many media and it adds to its customer base from ordinary office people to fashionable young Chinese. The limited artistic edition with 1,4 liter, 101-horsepower MultiAir engine, quickly grabbed the public attention.
Good performance of Fiat 500 in government standards
Nearly every new model of car drop the price after one year in China, but Fiat was really determine to keep the market share by 2% this year. Imagining the scale of the market, 2% means 400,000 cars, which is a huge number for any other market in the world. The price of this type of cars is estimated to be 15000 yuan cheaper than the other types. And of course, this new comer has a satisfying quality. In government accident tests, the Fiat 500 gained four out of five stars for general accident assurance, with four stars for aggregate frontal effect security and five stars for aggregate side-sway insurance, which is great in terms of cost/performance ratio.