Fleet Europe Forum 2011: "China’s the place – but don’t hurry"
The last of the formal presentations at the Fleet Europe Forum was on the emerging country everyone is talking about – China.
Raphaël Goué of Europraxis started by saying that in 1990 only 50,000 cars were sold in China, but that this year the figure would have risen to over 18 million! Growth is expected to remain at around the 10% level. The rising middle class would drive demand, he said, and now was the time to start planning if companies wanted a slice of the cake.
Planning was essential, agreed co-speaker Stéphane Renie of of ALD International, describing his company’s ‘long and difficult road’ in China. Regulations (where they exist at all) can be an obstacle to organize efficient business, and can vary from one city district to another. Meticulous preparation of every aspect of a proposed business vengture was a must. He gave two examples of what faces Western companies looking east: it was at times not permitted for cars registered outside Beijing to drive into the central zones of the cities. And one day, the authorities decided that saloon cars were more prestigious than hatchbacks, so no hatchbacks were allowed in.
These administrative realities, however, do not obscure one extremely positive element. China is not only now the world's biggest car market, but it is still growing and now is most definitely the time for vehicle manufacturers and others in the fleet and automotive profession - such as leasing companies - to be getting in and securing a foothold. The two speakers at the Fleet Europe Forum were both delighted to be representing their companies in this huge, exciting market, and both were confident that others can have a similar amount of success.
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