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A couple of things about the car industry.
I still remember, back in the days when people used to deride Japanese quality. They used to say Japanese cars were cheap and nasty imitations of American cars, British cars, German cars, you-name-it cars; the plastic amateurs where tacky; they rattled and fell apart... etc. Nowadays, Japanese cars mean quality and value for money. People prefer Japanese cars because they are affordable, economical, have advanced safety features and well-styled.
Branding is another issue. At some point, China needs to brand its products. BWM, Mercedes eg Kompressor range, Ferrari etc are brand names. The Ford Mustang and Camaro used to be brand names until the Americans forgot that there is a market out there beyond the shores of America and concentrated only on American styling and taste.
Another thing is innovation. The Japanese are good at that, just look at their Toyota Prius. What about niche markets? VW Golf TDI and Peugeot 307 had the diesel market to themselves in that range, now Ford is coming out with the diesel Focus Zetec.
Look at it in the longer term, launch a branded model with affordable quality in mind and let the car "mature", putting in more innovations and luxury with every new release and grow it with the market. Give the buyers a reason to come back to you again and again, and not because it is cheap, but because you are investing in innovations, quality and styling.
Having said all that, how long do you think the current 4-stroke petrol driven technology will last? Another generation? Another 50 years? Forever because crude oil is in unlimited supply and the earth is only a few thousand years old? If you believe that we have passed the point of "Peak Oil", what innovations do you have in your design labs or in the pipeline, say 10 and 20 years from now? If you do, showcase it.