Innovator’s Dilemma Thought has a headline about Asian automakers embracing larger, more powerful cars. They are moving up market, listening the demands of their customers – smart move. But this leaves open the market niche they used to dominate: small, high gas mileage, high quality cars… Chery & Brilliance, want to bet we see them enter that segment?

One response to “Innovator’s Dilemma Thought

  1. It’s a little disappointing to me to see the Asian automakers getting larger, even if that’s what the market demands. Even the current Honda Fit, known for its small size and good fuel economy, will be getting larger (read: more bloated and lower MPG) in its next iteration. The Chinese automakers would do well to fill the gap left behind since there isn’t as much competition in this segment (it would also be great to see a small turbodiesel truck the size of the old Ranger; we already know the technology exists to make it 50-state legal). Even in the mid 90’s, the midsize segment was too crowded to accomodate new, unknown brands (Daewoo), and the competition has only gotten more intense. I’m watching closely to see what happens with the launch of the new Chevy Malibu and the Dodge small car made by Chery, which should determine what direction new entrants into the U.S. auto market need to take.

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