How to target automotive firms in China?

In 2024, China’s automotive industry remains one of the most significant and dynamic in the world, shaped by its rapid technological advancements, regulatory policies, and market trends.

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What Automotive CEO & Top manager should know about the automotive industry in China for 2024:

Electric Vehicle (EV) Sales: China continues to lead the global market in electric vehicle sales. As of 2024, it’s estimated that EV sales account for over 50% of all new car sales in the country, reflecting strong government support and consumer interest in sustainable transportation.
Total Vehicle Production: China’s total vehicle production remains robust, maintaining its position as the largest automobile producer in the world. The total production numbers for 2024 are expected to exceed 25 million units, demonstrating a recovery and growth trend following any slowdowns due to the pandemic.
Market Penetration of Autonomous Vehicles: The deployment and acceptance of autonomous vehicles have been increasing, with China aiming to become a leader in this technology. By 2024, several cities in China have begun implementing and testing Level 4 autonomous public transportation services.
Government Regulations: The Chinese government continues to enforce and introduce new regulations aimed at reducing carbon emissions. These include stricter emission standards for combustion engines and incentives for manufacturers and consumers to switch to electric and hybrid vehicles.
International Exports: China’s automotive exports have seen significant growth, with Chinese brands increasingly recognized in international markets. In 2024, China exported over 2 million vehicles, marking a new high as Chinese automakers expand their global footprint.
Growth in Luxury Vehicle Market: The luxury vehicle segment has shown notable growth, with a surge in demand among China’s expanding affluent class. Brands like BMW, Mercedes-Benz, and domestic luxury marques like NIO and Li Auto have reported strong sales figures in 2024.
Innovation in Battery Technology: Advances in battery technology and manufacturing capacity have helped Chinese EV manufacturers reduce costs and increase the range of their vehicles. China remains a global leader in battery production and innovation, focusing on solid-state and improved lithium-ion technologies.

These key data points illustrate the vibrancy of China’s automotive sector in 2024, highlighting its leadership in electric vehicles, innovation in autonomous driving

September’s 2022 sales in China reached 2.61 million units. A year-on-year increase of more than 25%.

It is also predicted that EV/Hybrid vehicle sales will represent 1/4 of total sales for the year 2022. Pushed by a growing number of dedicated infrastructures (4 million charging units) and government incentives (tax wave, free parking hours in some cities…).

As an illustration, since Tesla started its production in their mega factory in Shanghai, the company produces more vehicles than anywhere else.

New trends are also emerging. Car rental boomed during the summer of 2022. People trying to gain some freedom back after harsh lockdowns. For their vacation this year, they preferred driving by themselves. Avoiding the pain of taking public transportation requiring passengers to provide a 24 hours PCR test. Not to mention the risks of being a close contact, leading to quarantine. RV is thus gaining popularity lately as well.

Opportunities for automotive suppliers still seem to have a rosy future in the Chinese market.

That being said, the competition is fierce. If you are looking to sell your products to automotive firms in China, you’d better buckle up.

You can imagine easily many are racing to reach these companies in China.

To succeed and give yourself a chance, you have to stand out from the crowd.

Don’t count on approaching the automotive firms with phone calls or mailing out of the blue. They receive countless solicitations every day, they won’t give a damn.

You also need to understand that most of the time they already have secured trusted suppliers. If they have new needs, they will do their research by themselves.

The key is to make you visible online, so they can find you by themselves, but how?

Forget Google. The Chinese internet is closed because of the great firewall. To be visible you need to focus your effort on Baidu (the first Chinese search engine).

In their research, they will never use English. Being in China they will use Chinese.

You need to:

-Have a dedicated website for the Chinese market

*In Mandarin: translation and content localization must be a top priority.

*Hosted in China (or Hong Kong or Singapore), it has to be geographically close to avoid being blocked by the firewall. Your website must be fast to download.

*Submitted to Baidu

*Optimized for China: forget links to Linkedin, Google maps…+ make sure it can support different reading formats (cf. phone).

*The architecture of your site should also be adapted to the preferences of local users.

*It has to have a good design and professional valuable informative content.

Don’t forget, your website will be the first showcase of your company. Buyers must want to spend some time on it. The longer they stay, the better chance they will want to contact you.

-Using SEO and PPC to make your site easily findable and visible

The law of the Jungle applies in Baidu. The strongest will dominates.

Automotive purchase managers

When buyers do their research on Baidu, they will not spend too much time. They will select the first suppliers on the first page.

To be visible to their eyes and have a chance to be contacted you have to get a strong referencing strategy, so your website appears on the first page.

Baidu SEO will help you to reference naturally your website if you select the right keywords.

It takes time, up to several months of work and adjustments to reach the first page. But the results are sustainable over time.

The second option is to use Baidu PPC. The pro is that you can get quick visibility. Con is that once your budget has been spent, the visibility stops. Still, Baidu PPC can help to boost your website ranking at the very beginning.

-A strong reputation: the holy grail

Reputation will be your best asset in China.

No matter how big you are, how famous you are. You will be seen as a newcomer in this market. No matter how good your reputation is outside of the country.

When buyers find you, the first reflex will be to check how reliable you are and how you are perceived in the Chinese ecosystem, not abroad.

You have plenty of options to build an efficient reputation:

*Press releases:

Having online specialized media in the automotive industry publishing insights about your company, sharing your innovations, and your experience is highly valuable and impactful. Indeed, buyers have a deep trust in their media, unlike Westerners. In China, it will help build your trust rank.

*Specialized forums:

Nothing is more convincing in the eyes of Chinese buyers than having feedback and advice from their peers. Having users or professionals in the industry who shares a positive experience with you and your product, will also bring you a big help in building trust with buyers.

*KOL: a.k.a. Key opinion leaders

In China, Key opinion leaders are a thing. Each industry has its pool of KOL and their influence is undeniable. Having a top expert in the Chinese automotive industry praising your company and products’ qualities can bring a bigger awareness of your company and help you reinforce your reputation.

-The ubiquity of social media

Even if in the west social media are mostly associated with leisure and private life.

In China, they are integrated into people’s everyday life, professionally and privately.

WeChat

WeChat is definitely THE app you cannot live without in China. Payments, communication, PCR test results, and news platform…are only the first uses that come to mind, enumerating all its functions will make your head spin.

Every serious business in China has an official account on WeChat. Allowing buyers to get all info they need about you at a fingertip (contacting you, following your news, and sharing your info easily…). It helps you build your image and nurture your prospects.

As uses of social media continue to merge between private and professional life. As buyers are getting younger, we’ve seen recently new emerging tendencies to use short video platforms such as Douyin (Tik-Tok) being used by B2B companies to reach those new young social media-raised buyers.

Video on Douyin

Promoting innovation in the automotive industry via video on Douyin (TikTok in China) can be an effective strategy, especially considering the platform’s massive reach and the interest in new technologies among its user base. Here’s a guide on how to do it, along with some tips to maximize your impact:

Explanation: Why Douyin for Automotive Innovation?

Douyin is one of the most popular social media platforms in China, with hundreds of millions of active users. It’s particularly popular among younger demographics who are often early adopters of new technology and trends, making it an ideal platform for promoting innovative automotive products like electric vehicles, autonomous driving systems, or new car-sharing services.

Tips for Creating Effective Douyin Videos:

Showcase the Unique Selling Points (USPs):
- Focus on what sets your automotive innovation apart. If it’s an electric vehicle, highlight features like battery life, charging time, environmental benefits, or smart features. Make sure these USPs are clearly shown in the video.
Use Engaging Visuals and Effects:
- Douyin is a visually driven platform. Use high-quality video production, engaging graphics, and visual effects to catch the viewer’s eye. For example, use animations to explain how new technology works within the vehicle.
Incorporate Popular Music and Sounds:
- Leverage Douyin’s extensive library of popular tracks and sound effects. Music can enhance the emotional appeal of your video and increase its chances of being shared.
Keep it Short and Sweet:
- Douyin videos are typically short. Aim for 15 to 60 seconds, making sure to capture attention in the first few seconds. A concise, impactful message works best.
Leverage Influencers and KOLs (Key Opinion Leaders):
- Partner with influencers who have a following in automotive or technology niches. Their endorsement can lend credibility to your innovation and help reach a broader audience.
Include a Call-to-Action (CTA):
- Encourage viewers to learn more by visiting a website, signing up for a test drive, or following your Douyin channel for more updates. Make the CTA clear and compelling.
Optimize for Virality:
- Encourage sharing by tapping into trends, using relevant hashtags, or creating challenge campaigns that invite user participation. For instance, challenge users to show their daily commute or their dream car features.

Do you need a Automotive B2B agency in China?

Gentlemen Marketing Agency (GMA) is a prominent marketing agency based in China, known for its specialization in B2B marketing strategies and extensive experience with Chinese social media platforms, including Douyin. Here’s an overview of how GMA could potentially leverage Douyin for B2B marketing, tailored to the unique dynamics of the Chinese market:

GMA’s Approach to B2B Marketing on Douyin

Video Strat:
- Educational Content: GMA can create videos that educate their audience about industry trends, technological advancements, or best practices. This type of video positions our B2B client as a thought leader and builds trust among business audiences.
- Product Demonstrations: Videos that showcase how a product works or its benefits in a real-world scenario can help potential business customers understand the value proposition clearly.
Influencer Collaborations:
- Collaborating with influencers who are respected in specific industries can enhance credibility and extend reach. AT GMA we can identify and partner with these influencers to produce content that speaks directly to business decision-makers.
Customer Testimonials and Case Studies:
- Video testimonials or case studies from satisfied customers can be powerful in convincing potential clients of a product’s effectiveness. GMA can produce high-quality videos that highlight success stories and detailed customer experiences.
Interactivity on Douyin :
- Live sessions or Q&A videos where businesses can interact directly with their audience can be very effective. GMA can facilitate these sessions, helping businesses address queries in real-time, which is particularly appealing in the B2B context.
Douyin Advertising:
- Douyin offers targeted advertising options, allowing businesses to reach specific industries, professions, or demographics. At GMA we can leverage these tools to ensure that content reaches the most relevant audience, maximizing ROI.
Analytics and Optimization:
- Utilizing Douyin’s analytics tools, GMA can track the performance of marketing campaigns and tweak strategies based on data-driven insights. This ensures that marketing efforts are continually refined and optimized for better results.

Implementation and Follow-Up

Launch Strategy: GMA can help launch a Douyin campaign with a clear roadmap, setting objectives and key performance indicators (KPIs) right from the start.
Engagement Plan: They can implement a robust plan to engage with users who interact with the content, ensuring that every potential lead is nurtured.
Reporting and Adjustment: Regular reporting to clients on campaign performance and making necessary adjustments based on feedback and analytics to improve the outcomes.