In China's auto market, carmakers are employing a strategy that's long been eschewed by the rest of the world: If a new model is helping you win, introduce a twin.
Take Honda Motor Co., whose namesake brand has been the fastest growing in China's mass market this year. With its sales gaining on demand for Vezel and XR-V compact sport utility vehicles that are virtually the same, the Japanese automaker plans to sell a second version of its recently-introduced Avancier full-size SUV next year, Executive Vice President Seiji Kuraishi said in an interview.
In the U.S., such a move would be panned as badge engineering, a strategy often pointed to as one of the reasons for the downfall of General Motors Co.'s bankrupt predecessor. In contrast, Honda, Volkswagen AG and Toyota Motor Corp. are among carmakers embracing the approach in China, the world's biggest auto market. The reason can be traced back to the country's requirements for vehicle producers to set up joint ventures with local companies.