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Tesla Car showroom
In the Chinese market, foreign car brands have a competitive advantage over domestic car brands because of their being associated with luxury and novelty. Thus, they have experienced tremendous growth in the high-end market, especially after China entered the World Trade Organization WTO in when the tariffs on imported cars were significantly reduced. However, the strength of a strong brand being associated with luxury and novelty could also be its weakness—there are high expectations for their product quality and customer service in the minds of Chinese consumers. In , German auto-maker, Mercedes-Benz, was involved in a clash with the Wuhan Wild Animals Zoo when the zoo discovered problems with the quality and reliability of the vehicle. In December , a Mercedes-Benz owned by the zoo was found to be dragging into the street by an ox. After numerous attempts to request Mercedes-Benz to replace the vehicle and cover the costs of the repairs, the zoo was dissatisfied that the company had not repaired the car like it would in the United States.
Case Study on CarDehko : Features, Funding, and Acquisitions
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