Chinese arrive as Europe focuses on going green

"The Chinese are coming" has been the dour warning from fearful European industry figures over the past five years

"The Chinese are coming" has been the dour warning from fearful European industry figures over the past five years. Scratch that: they've arrived. As the car industry gathered in Geneva yesterday for the start of the first major motor show of 2007, the threat posed by the Chinese looks set to become a reality.

There have been several Chinese brands making appearances at European shows in recent years, but the announcement by Brilliance Auto that it has set up its distribution network and plans to sell 15,000 vehicles this year is the first real foray by one of the host of Sino brands on to this continent.

This little-known Chinese brand has big ambitions. It used the Geneva show to introduce its European-focused three-car range to the motoring press. As a sign of its significance it also managed to host its press conference early yesterday morning alongside the likes of VW, Seat and Maserati. In motor show terms, an early press conference signals a big message. The Brilliance message was one that caught the attention of many in the industry.

Initial European sales will centre on the BC3 two-door coupé; the BS4 mid-range saloon; and the BS6 flagship saloon. All are powered by a four-cylinder 1.8-litre turbocharged petrol engine, offering either 136bhp or 170bhp. It was said to already meet Euro IV emissions standards.

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The styling is surprisingly contemporary, partly due to European help from the likes of Italian firm Giugario on the BS6, and Pininfarina on the BC3 coupé.

Prof Hans-Ulrich Sachs outlined the brand's plans for the year ahead. Sales, he said, would reach 15,000 in Europe by the end of the year and dealer networks had already been agreed for France, Germany and the Benelux.

As yet there are no right-hand-drive versions on sale, but Prof Sachs said Brilliance are in talks with a British company to develop these models and he hopes the brand will have an announcement about entering the British - and then Irish - markets by the end of the year.

While its sales forecasts were minuscule compared to the size of the mainstream European market, it reminded many that there are more threats to European carmakers than simply tougher EU emissions regulations and the constant media focus on environmentalism. Europe remains a crowded, cut-throat market for car sales.

One way to protect your brand from the bearpit of open competition is through creating a greener hue around your brand than others. That's worked for Toyota of late, with sales of its hybrid models - both Lexus and Toyota versions - set to reach one million this year. Two of its concepts on show demonstrate the future direction hybrid models will take, with a new HybridX concept revealing a potential people- carrying style, while the FT-HS sports car - first unveiled in January at the Detroit motor show - demonstrates that green need not mean slow.

Similarly Honda, one of the first instigators of hybrid technology, offered its Small Hybrid Sports car concept, the underpinnings of which is due to feature in a new model by 2009. It will be positioned between the Jazz supermini and Civic hatchback but will be more "sporting".

Meanwhile, General Motors, owners of the Opel, Saab and Chevrolet brands, confirmed that its all-electric car, the Volt, will enter production by 2010. The major uncertainty facing the Volt, a concept vehicle GM unveiled in January, was whether lithium-ion batteries can be developed to power it.

All the established brands offered something in the way of energy efficiency or "green" technology, but there's no ignoring the fact that for all the public attention to environmental issues, the industry focus remains on the competitive threats posed to Europe's established brands by the seemingly unstoppable growth of Japanese brands like Toyota, the rapid growth of the Koreans on the Continent and the arrival of the Chinese.