Brands seek to revive China market success

International carmakers with a smaller following in China are revamping their campaigns in the hopes of reviving the fortunes in the age of electric and smart vehicles in the world's largest vehicle market.

On Thursday, Hyundai announced it will increase research and development in China, including building its first overseas digital R&D facility in the country, to appeal to local tech-savvy customers.

The facility will focus on autonomous driving, connectivity, electrification and shared mobility, and the results will be applied globally.

This is part of a broader campaign to restore Hyundai's glories in China.

Hyundai was a popular choice and sales of Hyundai and Kia vehicles hit a record 1.8 million in 2016.

It then started a downward spiral in the country as German and Japanese carmakers grew their market share and Chinese carmakers began to produce better vehicles.

"We'll admit that the past several years have not been easy for us in China," said Kwang-Guk Lee, president of Hyundai's China operations.

"But with the boldness in Hyundai and Kia DNA, we will overcome the challenge and prepare for a new lift."

It plans to launch electric vehicles in China every year starting from 2022 to enhance its presence in the world's biggest NEV market.

The total number from new energy vehicles models for the group in China, including hybrids and fuel cell vehicles, will reach 21 by 2030.

The group also plans to cut the number of its gasoline vehicle models to 14 in China from the current 21 by 2025.

Hyundai is building its first overseas fuel cell system production plant in China, with completion aimed for the second half of 2022.

Also, last week, France's Citroen made the global premiere of the C5X crossover, saying it is primarily designed for the discerning Chinese customers.

The model is a mix of a sedan, a station wagon and an SUV and features Citroen's latest technology in such aspects as connectivity and driving-assist functions.

"For me, it is a beacon of branding for Citroen in China," said Citroen CEO Vincent Cobee.

French carmakers have the smallest market share in China. Last year, Citroen's sales totaled merely 52,700 in the country, continuing a downward spiral starting from 2016.

In the first quarter this year, however, its deliveries more than doubled the figure for the same period last year.

That is not just because of the post-pandemic recovery in China's auto market, but also because of Citroen's rejuvenation strategy for the country announced late last year.

Cobee said the C5X will further help improve the company's competitive edge and raise local customers' expectations for a brand which has been in China for almost three decades.

"An interesting point about young Chinese customers is that there is a lot of appetite for brands and beyond brands for personality," Cobee said.

The model, which is available in gasoline and plug-in hybrid versions, will be built in a joint venture plant in Chengdu, Sichuan province.

Cobee said one reason of for the decision is that China will be the model's most important market, and the other is the outstanding quality of vehicle production in the country.

"China is the highest quality producing place in the worldwide automotive market.

"We want this vehicle not only to be exceptional, We want it to be perfect in quality, so China is the logical choice for this," said Cobee.

He said the vehicle will roll off the Chengdu plant's assembly line soon and hit the market in the second half of the year.