Learning curve
Experts said that Chinese carmakers' relatively low costs are their major advantage in better meeting local demands in Asia, Africa, Latin America and other developing regions, but shortcomings remain in terms of effective localization.
Cui at the China Passenger Car Association said: "Chinese products still lag behind those of mature automakers for two reasons: the overall standards of our manufacturing industry and a lack of local insight.
"China-made products might suit the domestic situation well, but can fail amid local challenges in other countries, resulting in negative word-of-mouth reputations in those markets."
Japanese and South Korean players adjust their products in accordance with the destination markets, launching local editions in the Middle East and Southeast Asia, for example.
Bai Ming, an official at the Chinese Academy of International Trade and Economic Cooperation of the Ministry of Commerce, also said that Chinese carmakers suffer from not fitting into local markets well.
"Usually it is not a matter of quality products, but the unfulfilled need for after sales services," he continued.
Bai advised: "Carmakers should pay attention to establishing value chains, especially connecting with partners on the supply and service side."
Both Bai and Cui said they viewed the development of a strong service network as much more important than sales, as service offerings decide a carmaker's long-term sustainability in an overseas market.
The experts suggested auto financing as a suitable business that is complementary to overseas services, since the sector has remained underdeveloped among Chinese companies for a long period of time.
State-owned FAW Group established its investment arm, FAW International Investment Co on Sept 24, aiming to support and consolidate its auto services in countries and regions along the Belt and Road.
A week later, Geely Holding announced it will increase its stake in Denmark's Saxo Bank to 51.5 percent. The deal is seen as highlighting the carmaker's drive to tap the expertise of European financial firms, although the transaction awaits regulatory approvals.
