/ 22 September 2004

China gets ready for formula one

Sunday sees the first-ever Grand Prix being staged in China — but, by midweek there was little excitement ahead of the big day.

In the main shopping areas of Shanghai, where the race will take place, only a few posters announced the race and state television channel CCTV has only just started with advance programmes.

On the highway leading to the modern, €260-million (about R2-billion) track — built about 40km outside Shanghai in the Jiading district — billboards tell racing fans where to purchase their tickets, while workers were on Wednesday still putting the finishing touches to the Shanghai International Circuit.

Organisers are saying the race does not need heavy advertising.

Advance marketing included the staging of the first race of the 2004 China Circuit Championship and an official opening.

These marketing strategies seem to have worked as all 200 000 tickets for Sunday’s race have been sold at prices between 370 and 3700 yuan (R290 and R2 900). The company that marketed the event, KHP Consulting, said about 30% of visitors at the race are expected to come from Shanghai, while 55% are from the rest of China.

With the first grand prix race in China, formula one is opening new doors and entering new dimensions. Shanghai is the biggest and most spectacular place in which a grand prix has been held and the track is not only the most modern, but also the most expensive.

”I think it is only right that we race in China; after all, it is a world championship,” said seven-time world champion Michael Schumacher.

The man in charge of all Mercedes-Benz motor-sport activities, Norbert Haug, believes the race on Sunday could become the most-watched event in motor-sport history.

China, which will host a formula-one race till at least 2010, is the second country to stage a grand prix for the first time this season and, like Bahrain before, is hoping that it will gain good publicity through the race.

There is, however, another reason why many involved in formula one see the Chinese Grand Prix as so important: economics.

BMW’s Mario Theissen said that ”BMW sees China as the fastest-growing market with a huge potential” — a view shared by Haug.

”We will be producing the C- and E-class in China next year and want to introduce ourselves to prospective customers through the race.”

Although China’s market for cars is the fourth-largest in the world, it is concentrated in major cities and in the coastal regions. Almost all major car manufacturers have invested millions and Shanghai — with the biggest Chinese car manufacturers, Shanghai Volkswagen and General Motors — remains as China’s car capital.

Even though China’s economy is growing at a rapid rate, buying a car remains beyond the reach of most of the 1,3-billion Chinese.

Although CCTV regularly broadcasts grand prix races, formula one remains an unknown entity throughout much of the country.

That, however, is not something that worries Zhifei Yu, deputy director of the Shanghai track, who said the investments made are long-term.

”We are not expecting profits from formula one in the first three years. During that time, we are hoping to make friends,” he said.

Another long-term goal is to set up a Chinese formula-one team.

Several young talents have already been discovered and sent abroad to get some racing experience.

”One day we will have our own drivers and our own team,” said Yu.

That’s exactly what formula-one boss Bernie Ecclestone hopes for.

”There simply must be a suitable driver among 1,3-billion people,” Ecclestone said. — Sapa-DPA