Asian Cars: Auto Manufacturers to Watch

The Asian automobile manufacturing market is much broader than many American consumers understand it to be. Beyond Honda, Hyundai, Toyota, and other household names there are quite a few automakers that are growing in size and respectability in their own markets. Two of these companies have already committed to selling their models in the U.S., but there are three others worth knowing about and watching.

Starting in 2007, two Chinese automobile manufacturers will be exporting cars to the U.S. and Canada. Geely Automobile Company and the Chery Automobile Company are part of the first wave of new Asian automakers preparing to serve the U.S. market. I won’t go into more detail about these two manufacturers, so please read a related article I wrote titled, “Chinese Cars: Redefining the Market,” to learn more about them.

Proton -- Proton Holdings, the parent corporation of Proton Motors, is the largest manufacturer of vehicles in Malaysia. Volkswagen and Proton signed a strategic partnership agreement in October 2004 whereby Volkswagen cars would be built on Proton assembly lines beginning in 2006. Apart from the VW venture, Proton has a line of models of its own consisting primarily of subcompact and compact sized vehicles. Proton cars are currently exported to Australia and the company is eyeing the U.S. market perhaps as early as 2010. In addition to its VW relationship, Japanese automaker Mitsubishi owns nearly a 16% share in Proton.

Hindustan -- Since 1950, Hindustan Motors has been building cars for the Indian market. Their current line up of automobiles, looking as if they were built in the 1950s, do not match up to current world styling standards. However, the emerging Indian economy has been providing remarkable growth across all business sectors and the Indian automobile industry is ripe for renewal. The Ambassador Grand, one such model, has recently been updated to meet current European emissions standards. Look for a Hindustan model to be exported to Europe first before taking on the highly competitive U.S. market.

Tata -- Unlike Hindustan Motors, India’s Tata Motors is currently producing cars that look as if they were designed recently. As the only Indian car company featuring cars built and designed by Indians, the company’s Indica V2 and Indigo compacts have received a favorable reception at the Geneva Auto Show. Plans to export directly to the U.S. have been considered but Tata cars may get to the U.S. under another label before then, such as Ford or Dodge.

Best Used Car Warranties

The need for cars has increased tremendously over the past few decades. Every person dreams of owning a car, but many people cannot afford to own a new car. They settle for used cars. Many used cars have problems, and the buyer may end up spending more on repairs. Sometimes the figures are equivalent to the price of a new car.

A lot of car agencies now conduct their own tests to identify the condition of a used car and the need to repair it. These companies offer extended warranties on these used cars as a way to assure the buyer of the quality of the used vehicle. If any problem arises out regular use of the vehicle, the car agency or dealer repairs it for the customer free of charge within the warranty period.

The condition of a used car depends a lot on the usage and maintenance by a previous owner. Certain car owners take very good care of their cars. These cars do not require repair. On the other hand, some cars are not maintained and this leads to periodic repairing and maintenance. Buyers need to invest in the best-used cars available, as they give more value for money and require less maintenance.

Car dealers, companies and agencies examine these used cars and certify them according to their condition. Different dealers have different certifications, which may vary. These certifications can be used as guidelines for buying used cars. Normally, the warranty given on used cars depends on the condition of the car. They range from six months to one year. Used car buyers can get additional warranties on the car that they have purchased based on the condition of the car and certification.