Why have Chinese cars decreased in sales in 2023?

The Chilean automobile market is absolutely atypical. Even if in terms of sales we are far from comparing ourselves to the biggest, our particularity lies in the large number of brands present in the country – more than 70 to date. And as it is not an automobile producing country and is open to commerce, the importation of vehicles of very diverse origins is favored.

According to the latest report from the National Automobile Association of Chile (Anac), sales of light and medium vehicles by origin in 2023 cite China, India and Japan as the main producing countries.

We are referring here not only to the brands of these countries, but to all the models manufactured there, such as the Chevrolet Groove which is manufactured in China and which has just been crowned the best-selling SUV of 2023.

Currently, China is by far the country from which cars are imported the most. 35.4% of sales in 2023 corresponded to vehicles originating from the Asian country. Or 111,108 copies. Far behind, they are followed by India (10.4%), Japan (8%), Brazil (7%), South Korea (5.9%), France (5.8%) , Argentina (5.5%) and Mexico (5%), among others.

Although there is no doubt about the supremacy of Chinese origin, the percentage of sales of vehicles manufactured in the land of the Asian dragon declined in 2023, reversing the upward trend recorded more than a decade ago.

When Great Wall Motors, the first Chinese brand, entered the country in 2007, only 2.4% of cars sold in Chile were imported from that country. The main manufacturing origins were then Japan (26.1%), South Korea (25.7%) and Brazil (10.9%).

A decade later, the presence of Chinese manufacturers had already grown significantly in the country, reaching 19 participating brands. Along with this, the Chilean consumer’s confidence in cars from this origin was greater. Prejudices about its questionable quality and reliability began to disappear with the arrival of new generations.

So, in 2017, sales of cars made in China reached 13.9%. A percentage that continued to increase exponentially in the following years, until reaching a peak in 2022 – when our automotive market recorded the highest historical record – of 39.1%.

“The growth in sales of Chinese origin has several explanations. Firstly, the largest volume of vehicle production in this origin, both in the number of units and in the diversity of segments, since today all types of cars, SUVs, trucks, sedans, hatchbacks, utility vehicles are manufactured , etc. 10 years ago, only a few specific types of vehicles were manufactured. Second, the perceived quality of its products has also increased, with better material quality, better texture and a higher level of equipment. And thirdly, the commercial opening of Chile with the FTAs ​​which make it possible to permanently open imports from this and other origins,” maintains Diego Mendoza, secretary general of Anac.

For the reasons mentioned above, Chinese brands today rub shoulders with traditional generalist brands on equal terms and there are even new players seeking to compete at a higher level, with premium or specialized brands. Tank: the brand specializing in 4x4s from Great Wall Motors is already present in Chile

Its lead is such on the national territory that from 24 Chinese brands present in 2022, it increased to 33 in 2023. However, if there are more representatives of this origin than ever, why are the sales of cars from China Did they fall last year?

“The Chinese economy faced a bad year in 2023, which had an impact on its production chain and on the availability of products abroad, knowing that the majority of what is manufactured there is intended for supply the domestic market, today the largest in the world,” says Mendoza.

OMODA and JAECOO are two Chinese brands that are about to arrive in the country. Its marketing manager, Rocío Valenzuela, states that “Chile is considered a very attractive and reference market due to the number of automobile brands present due to the diversity of origins -28- with sales that exceed other countries in the region. region and with a very informed public. , its growth potential is therefore enormous.

For his part, Héctor Illanes, Deputy Sales Director at SAIC Motor, manufacturer and representative of MG Motor in Chile, states that: “although 2023 started as a year of recession, it ended up showing a significant economic rebound, and at MG Motor we “We are proud to be the sales leaders among brands of Chinese origin, positioning models from different categories among the best sellers, such as the MG ZS in the case of SUVs and the iconic MG3 in sedans.”

“We hope that this year will be recharged and full of electrifying novelties, where electromobility will take on greater importance and where brands of Chinese origin, such as MG Motor, will remain leaders in the segment, given that the Asian giants are international leaders in terms of the development of zero and low emission vehicles,” he emphasizes.