Beijing brand is coming back

Beijing brand passenger cars are set to be introduced after an absence of 30 years, and Shanghai-branded cars are also expected to hit the road again, according to the manufacturers' plans. But experts hold doubts about the revival of these old brands.

"Beijing Automotive Industry Holding Co (BAIC), the manufacturer of Beijing brand cars, is scheduled to announce the exact prices of Beijing brand E series passenger cars later tomorrow," Zhang Nan, an employee from BAIC's Pengyuan showroom, told the Global Times yesterday, adding that the cars were expected to be available early April.

BAIC only has two showrooms in Beijing for the sale of Beijing brand cars, including Pengyuan, according to Zhang.

The E series cars, powered by 1.3-liter and 1.5-liter engines, are expected to be priced at 60,000 yuan ($9,498) to 90,000 yuan. BAIC also plans to introduce in September mid- to high-end sedans based on Saab technology, 21st Century Business Herald reported last month.

Besides the Beijing brand, Shanghai Automotive Industry Corp has included Shanghai brand cars in its product plans and FAW Group Corp also plans to put its Hongqi (meaning "red flag") sedans into mass production this year.

It's realistic for Hongqi to return to the market as it used to represent the image of China, but it's doubtful if the Beijing and Shanghai brands will gain enough traction, said Su Hui, vice president of the auto market division at the China Automobile Dealers Association.

Enterprises, public institutions and older people are likely to be attracted by these brands, Su told the Global Times yesterday.

"The names of these brands are eye-catching, but that alone can not ensure their sales. Only novel design and distinctive styles can make them attractive to consumers," Su noted.

Su also noted that it's a good opportunity to revive these old brands because a recently proposed list of approved vehicles for government purchase offers them advantages.

The Ministry of Industry and Information Technology announced changes to its policy on the procurement of vehicles for official use last month, and put forth a list of 412 passenger cars.

The list requires that the prices should be lower than 180,000 yuan and the engine capacity should not exceed 1.8 liters, which disqualified foreign carmakers, for the purchase of standard official cars.

"Beijing and Shanghai brands, which are of cultural and political significance to local governments, have the advantages in the government procurement market," Su noted.

However, the favorable policy alone cannot support the overall development of Beijing brand and the key lies in its quality, said Jia Xinguang, an independent auto analyst.

Jia also expressed doubts about the ability of a low-end brand such as Beijing to gain a foothold in the capital's market, where the average price of passenger cars in use is 150,000 yuan.

The Beijing and Shanghai brands, both established in 1958, became popular in the 1970s, but later the domestic carmakers put the focus on setting up joint ventures and their domestic brands gradually faded out from the market in 1980s to 1990s.