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FAW Group Corporation: Launching the First Chinese-Made Car in Hong Kong  
Product Ref: 08/400C Company: FAW Group Corporation

Product Type: Case Industry: Automobiles & Components

Related Product(s): N/A
Authors: Simon Lam   Isabella Chan
In 1953, shortly after the People's Republic of China was formed, FAW Group Corporation ("FAW") was founded with the goal of creating a modern automotive industry for China. "The pioneer of China's automotive industry", FAW is the largest automobile manufacturer in China, producing a variety of vehicles, including passenger cars, trucks and buses. Its passenger car business covers both propriety brands (eg, Hongqi, VITA and Xiali) and foreign brands (eg, Audi, Toyota and Volkswagen). The company is also a global original equipment manufacturing supplier of automotive parts and components. In 2007, FAW recorded sales of US$24.8 billion. Its huge success in China has prompted it to gradually expand into global markets, exporting its cars to the Middle East and Africa. The company also envisions selling a range of both luxury and lower-end passenger cars to Hong Kong as its next stop, and ultimately to the US and other developed markets. Will Chinese-made or Chinese-branded cars in general and FAW's cars in particular have a market in Hong Kong? What barriers, if any, will FAW face in marketing their cars to Hong Kong consumers?
Functional Area : Marketing
Strategy & General Management

Issues: Chinese cars, global expansion, marketing, product credibility, product quality, consumer interest, Sino-foreign joint ventures, technical licensing agreements, Hong Kong market, developed markets
Length: Text: 5 pages
Exhibits: 4 pages
Country: Africa
China (People's Rep. of)
Hong Kong SAR
Middle East

Pub. Year: 2008 Level of Difficulty: 2
This product type is available in the following language(s):      English
Related Information: N/A
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