Despite the fact that it has been in China for 10 years, the brand remains largely unknown, and is often mistaken for the local Chinese brand, Changan, because of their similar logos.

The reasons for its obscurity seem clear. Acura cars are seldom seen on either the roads or in any form of advertising, despite the fact that this year marks the 30th anniversary of the brand and the 10th anniversary of its entry into the Chinese market.

Auto analyst Zhong Shi said that although Honda would prefer to invest in improving its products rather than in forging emotional bonds with customers, there are problems with such an approach.

"There are too many cars in the market now and without publicity, a brand has little chance of gaining public recognition," Zhong said.

Infiniti offers the perfect example of how improved advertising can boost a brand.

It sponsored a reality TV show in late 2013, and the move boosted its brand awareness which had grown by 30 percent by the end of 2014, with its sales for the same year exceeding 30,000 units, a 76 percent surge year-on-year.

Acura is also hampered by a small sales network.

It has only 42 dealerships nationwide, with 11 in Guangdong province, where the joint venture is based, and the others spread sporadically around other regions.

Mercedes-Benz has about 500 dealerships in China, and Lexus has 156.

Last year, each Acura dealership on average sold less than 100 cars.

Zhong described the situation as a vicious cycle.

He said: "The poor sales figures lead to small profits, so it (Acura) holds no appeal for investors, and the small number of dealerships will, in turn, affect car sales."

The premium segment of the Chinese auto market is intensely competitive, but the overall pattern is well established.

The three German giants - Audi, BMW and Mercedes-Benz - are firmly in the top three positions, leaving others to compete for the remaining market share through product investment, more dealerships and increased publicity.

It appears that Acura hassome way to go before it can be considered genuinely established in the market.

To an extent, Zheng Heng, GAC Honda's executive deputy general manager, was right: The model's localization heralds both a brand new start and a challenge.

lifusheng@chinadaily.com.cn

(China Daily 07/11/2016 page19)