Driving success: five keys to establishing automotive dealerships in Asia
As the dominance of the United States and European car markets fades, manufacturers have to deal with a new Asian-centric reality. But selling cars on the ground in Asia can be a challenging task, particularly given the need to rely on local dealers. Car makers need to address a series of challenges – including branding, and partner and location selection – to ensure their Asian expansion is a successful venture.
Success relies largely on the actions of local third-party dealers. These dealers provide the majority of funds for creating dealerships, and they manage the day-to-day interactions with your customers – and potential customers.
To successfully expand into Asia, it is critical to carefully manage the establishment of your dealership networks and your company’s interactions with these local dealers. This goes beyond offering them the right mix of financial incentives and involves five keys:
1. branding
2. partner selection
3. location selection
4. establishing local distribution networks
5. managing cultural issues
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