20 May 2013

Much attention has been focused on the potential for Chinese brands in the European car market. But, if you really want to know where the Chinese are already having an impact, take a look at aftersales.

Okay, I knew vaguely that Chinese-made parts were gaining ground (especially in the older car market) but I’d never really considered the effect that a properly marketed, high quality Asian aftermarket product could have – until last week.

Giti Tyres may be the largest tyre company you’ve never heard of. It’s already one of the top 10 tyre makers in the world. Now it’s getting its act together in Europe and, especially, in the UK with an exclusive distribution deal through Micheldever.

The focus for its GT Radial range is independent tyre retailers and branded GT Radial Performance centres. But don’t think it won’t affect the franchised sector.

The GT Radial is already the only approved mid-range replacement tyre on the Volkswagen Group tyre programme and, later this year, it’s set to become OE fit on a volume European manufacturer’s range. That means franchised workshops for that particular make will have to stock, or have access to stock, of the tyres.

I can’t comment on the quality of the tyres but GT Radial is already making inroads into motorsport where it outperforms some of the biggest names in the business. But, what is impressive is the level of long-term commitment to global success.

Giti Tyres has more than 300 people working on R&D, with the development programme led from here in the UK. It has recruited senior executives from some of the leading premium tyre brands in Europe and the US. There’s a sophisticated marketing support programme for retailers and there’s a clear online strategy.

Why is all this relevant? Well, apart from the business Giti may take away from you in the tyre market, it’s yet another reminder that when Asian brands take it seriously, they do it right.

I may be behind the curve on this, but it made me think I need to be taking a whole lot more interest in the wider Chinese auto industry – and not just the car brands.

Rupert Saunders

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Tags: aftermarket, Chinese tyres, Giti, mid-brand, tyre retailing, Volkswagen