“Foreign Carmakers Try Brands Just for China”
In the March 3, 2011 issue of Bloomberg BusinessWeek, Booz & Company Senior Advisor Bill Russo (China) said that plans by big car companies to create cheaper models for less affluent shoppers in China could have a profound effect on the industry. “If these brands are successful, they are going to have a much higher growth rate,” said Russo of the efforts of major car makers in reaching out to less affluent shoppers in China’s interior with basic entry-level models. GM, Honda, and Nissan Motor are creating brands targeted specially for the world’s biggest car market in an effort to boost sales in China’s interior, where incomes rose almost 11 percent in 2010. “The number of people that can shop at that price point is much larger,” added Russo.