China’s economy grew 8.9 percent year-on-year last quarter, below the 9 percent mark for the first time since mid-2009. Full-year growth of the gross domestic product slowed to 9.2 percent in 2011 from 10.4 percent in the previous year. The annual growth was well above the government’s expectation of 8 percent.

 

On the automotive front, China is on a roll. In 2006 it overtook Japan to become the second biggest car market in the world.

 

In terms of the refinish market, there’s talk of a Chinese manufacturer shaking up the UK paint industry, which could be an interesting move.

 

China is a huge, diverse and fascinating market to crack. As part of the IBIS 2011 Global Focus report research, the China Automotive Maintenance and Repair Association reported there were 100,000 shops in China. This number has remained pretty much static since 2001.

 

According to Xinhua News Agency, there are around 85 million private passenger vehicles on China’s roads. By 2040, some predict this could grow to an astonishing 450 million. Accident rates are high (new and inexperienced drivers far outnumber China’s more experienced drivers) and virtually every damaged vehicle is repaired.

 

With an interesting approach to shop licensing in China and changing regulations on collision repair training and equipment, it’s no wonder bookings from Chinese delegates are up for IBIS 2012.

 

Almost 10 years ago, General Motors started a project called the Asia Family Car. 

 

“We had our best brains on it and looked at all sorts of things to reduce cost including small stampings that could be welded by hand,” said GM CEO Rick Wagoner. “Frankly, it was a disaster in the end. No matter how much you take out, there’s a lot of non-discretionary stuff in a car: engine, transmission, suspension, axles, wheels, brakes…and that’s all cost. It might be worth pursuing the idea of a very inexpensive car, but it’s not worth doing in the US because consumers there have minimum standards and I guess the same is true of Western Europe.”

 

In 1998, Chrysler produced a $6,000 car with a body made from the PET plastic used for drinks bottles. It was designed for emerging nations such as China. 

 

“It had a two-piece, blow-moulded body with a seam along the roof and you couldn’t paint it,” said GM’s Bob Lutz, who was working for Chrysler at the time. “We showed it to the Chinese government and they were offended by it. They hated it. They wanted proper cars, not this plastic thing.”

 

This article appears courtesy of the International Bodyshop Industry Symposium (IBIS), a yearly gather of the collision repair industry’s thought leaders, influencers and key stakeholders from all over the world. Collision Repair magazine is the Canadian Publisher Partner for IBIS.